OREANDA-NEWS. On July 06, 2009 IFC, a member of the World Bank Group, announced it will provide Belgazprombank US10 million in trade finance guarantees to help the bank finance foreign trade transactions of Belarusian companies, reported the press-centre of Belgazprombank.

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 imports and exports 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. 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 approved a US 1.5 billion increase to its Global Trade Finance Program, doubling its ceiling to US 3 billion.