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.
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.
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.