Minsk, Belarus, July 6, 2009
—IFC, a member of the World Bank Group, has announced that it will provide Belgazprombank with $10 million in trade finance guarantees to help the bank finance foreign trade transactions of Belarusian companies.
Belgazprombank has joined IFC’s Global Trade Finance Program as an issuing bank, gaining access to a global network of banks supporting trade finance operations. By extending and complementing banks’ capacity to provide trade finance, IFC aims to increase developing countries’ share of global trade and promote flows of goods and services among those countries.
“We appreciate the strong support from IFC, our long-term partner, during these challenging times,” said Sergey Shaban, Deputy Chairman of Belgazprombank. “The trade finance program will give us more opportunities to help our clients reach global markets.”
“IFC is pleased to expand its partnership with Belgazprombank,” said Snezana Stoiljkovic, IFC Director for Central and Eastern Europe. “Through the trade finance program, IFC and Belgazprombank will support the import and export activity of local businesses and create additional opportunities for economic growth in Belarus.”
Under the Global Trade Finance Program, which was launched in 2005, IFC provides partial or full guarantees for individual trade transactions and covers the payment risk of issuing banks in various countries. The program allows issuing banks to increase the volume and value of trade transactions, with enhanced tenors and access to competitive pricing terms.
Global trade is projected to contract this year for the first time since 1982, and the World Trade Organization has cited the contraction in trade finance as a significant contributor to the decline in trade, which has been particularly acute in emerging markets. In response to the crisis, IFC has approved a $1.5 billion increase to its Global Trade Finance Program, doubling its ceiling to $3 billion.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About Belgazprombank
Belgazprombank, established in 1990 and controlled by Russia’s Gazprom group, ranks as Belarus’s seventh-largest bank by assets. The bank occupies a leading position in lending to the Belarusian private sector, particularly to SMEs and retailers.
