China to expand trade finance with region

WASHINGTON DC, United States, September 25, 2008 – The Inter-American Development Bank (IDB) has announced the incorporation of Bank of China as a Confirming Bank into the IDB Trade Finance Facilitation Programme (TFFP), further expanding its trade finance activities with Latin America and the Caribbean.
 
Under the TFFP, the IDB provides guarantees to cover documentary and stand-by letters of credit, promissory notes and other instruments used in the financing of international trade transactions.
 
“The TFFP is an important component within the IDB’s overall strategy to foster the increasing business opportunities between Asia and Latin American and Caribbean countries. The participation of Bank of China in the programme is one example of how the IDB can contribute to the economic and financial integration process .between the two regions”, said Hiroshi Toyoda, Special Advisor for Asia at the IDB Office of Outreach and Partnerships.  
 
“We are pleased with the incorporation of this important financial institution into our programme’s network of Confirming Banks,” added Daniela Carrera Marquis, Chief of the Financial Markets Division at the IDB Structured and Corporate Finance Department.
 
“We expect that many more Chinese banks will soon follow Bank of China’s example.”
 
Bank of China is one of the world’s largest banks in terms of market capitalization.
 
Launched in 2005, the TFFP is a tool for the IDB to support economic growth through the expansion of international trade financing available to Latin American and Caribbean companies.
 
It currently comprises a network of 198 Confirming Banks from 71 different international banking groups, and 34 Issuing Banks in 14 Latin American and Caribbean countries, with US$657 million in approved credit lines. To date, the IDB has issued guarantees for over US$350 million in support of 441 individual trade transactions totaling US$468 million.