The Private Sector Department of the IDB announced today the joining of Banco Indusval S/A to its Regional Trade Finance Facilitation Program (TFFP). Under the TFFP, the IDB extends guarantees to cover letters of credit, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions. As trade financing is a core activity of Banco Indusval, its participation in the TFFP will be instrumental in the expansion of its trade finance activities.
Launched and rolled-out in 2005, the TFFP is an effective tool for the IDB to support economic reactivation and growth through the expansion of financing available for international trade activities of Latin American and Caribbean (LAC) countries. The TFFP currently comprises a network of 83 Confirming Banks belonging to 43 different international banking groups in over 26 countries, and 24 Issuing Banks in 13 LAC countries with over US$460 million in approved credit lines. To date, the IDB has issued guarantees for over US$100 million in support of 126 individual international trade transactions totaling US$137 million.
Banco Indusval is a medium-sized Brazilian bank with its head office in Sao Paulo-SP and branches located strategically in important cities of the Southern, Southeastern and Center regions of the country.
Indusval’s clients have a growing need for trade finance services and products. IDB’s TFFP is expected to play an important role in helping Banco Indusval to broaden its access to new sources of trade financing by helping them access the program’s network of Confirming Banks. It should also help them to increase lines with their existing international correspondent banks.
- Christina MacCulloch
For more information on the TFFP, please contact:
-Joao Vainei da Silva
-Ulrike Aulestia Vargas