Banks Join IDB Trade Finance Program

The IDB has appointed several financial institutions confirming banks in its trade finance facilitation program (TFFP). They are BBVA subsidiaries in Argentina, Chile, Colombia, Mexico, Panama, Peru, Paraguay, Uruguay and Venezuela. In addition, Banco de Costa Rica and Panama’s Banco Aliado were appointed issuing and confirming banks in the same program. The BBVA LatAm subsidiaries add to its branches in Belgium, China, France, Italy, Japan, UK and USA as confirming banks. “The participation of its Latin American subsidiaries makes BBVA one of the leading TFFP confirming banks in the region and will further boost the TFFPs’ objective of fostering intra-regional trade finance flows,” says the IDB. It adds that the inclusion in the program has enabled BBVA Uruguay to directly confirm a standby LC issued by an Ecuadorian TFFP issuing bank and used for the import of machinery from Uruguay to Ecuador, hence promoting trade business between the two countries. Under the TFFP, the IDB extends guarantees to cover documentary and standby LCs, promissory notes, bills of exchange, bid and performance bonds, advance payment bonds and other instruments used in international trade finance transactions.