MONTEVIDEO, Uruguay – The Export-Import Bank of Korea (Korea Eximbank) has joined the Trade Finance Facilitation Program (TFFP) of the Inter-American Development Bank as a Confirming Bank.
The signing ceremony was held during the IDB Annual Meeting, with President Luis Alberto Moreno for the IDB, and Yong Hwan Kim, Chairman and President for the Korea Eximbank.
Under the TFFP, the IDB offers trade finance co-lending facilities and guarantees to support participating banks to further increase their trade finance businesses, promote economic growth and take advantage of the TFFP’s counter-cyclical role during times of volatility.
Recognizing the growing importance of trade relations between Asia and Latin America and the Caribbean, the IDB has made it a priority to expand its network of Asian partners in its TFFP program in recent years. Korea Eximbank is the third Korean bank to join the program.
“We look forward to working together with the Export-Import Bank of Korea and to continue to incorporate additional Korean banks in the near future,” said Daniela Carrera-Marquis, Chief of the Financial Markets Division at the IDB’s Structured and Corporate Finance Department. “The potential to further expand the volume of business between Asia and Latin America and the Caribbean is significant, and the IDB is well-positioned to play a leadership role and facilitate such market growth.”.
“The Export-Import Bank of Korea is pleased to partner with the IDB and join the growing TFFP network,” said Woo-taek Suh, Director General, Interbank Export Finance Department, Export-Import Bank of Korea. “Through this partnership we are combining the IDB’s local market expertise and reputation in Latin America with the Export-Import Bank of Korea’s highly regarded experience in providing export credit and guarantees to support Korean enterprises’ overseas business. The collaborationis a win-win for both organizations, and we hope to expand trade for new and existing players in Korea and the Latin American and the Caribbean region.”
Launched in 2005, the TFFP is an effective tool for the IDB to support economic growth through the provision of stable and reliable sources of trade finance for financial intermediaries in Latin American and Caribbean countries. In order to reduce systemic risks, access new capital and strengthen competitiveness, the TFFP offers co-lending facilities, A/B loans and guarantees to cover documentary and stand-by letters of credit, bills of exchange, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions.
The TFFP includes a network of 265 Confirming Banks belonging to 101 different international banking groups in over 53 countries, and 77 Issuing Banks in 20 Latin American and Caribbean countries with $1.4 billion in approved credit lines. To date, the IDB has issued guarantees in support of 2,071 individual international trade transactions totaling over $2 billion.