The Private Sector Department of the IDB announced today the joining of the Ecuadorian Banco Pichincha C.A. as Issuing and Confirming Bank under 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. With the help of TFFP, Banco Pichincha will further expand its trade finance activities through the TFFP network of participating Issuing and Confirming Banks.

TFFP

Launched and rolled-out in 2005, the TFFP is an effective tool for the IDB  to support economic 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 over 83 Confirming Banks belonging to 43 different international banking groups in over 28 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 Banco Pichincha C.A.

Banco Pichincha is the largest bank in Ecuador with US$ 2.9 billion in assets as of December 2006.  With 252 branches and 390 automated teller machines, Banco Pichincha provides financial services to corporations, small and medium enterprises, microfinance and the mass retail market. By joining the TFFP, Banco Pichincha will be able to increase its funding base with correspondent banks for trade finance.