VTB Bank and IFC Signed Guarantee Agreement
OREANDA-NEWS. June 29, 2010. VTB Bank and International Finance Corporation (IFC) signed a framework agreement on granting guarantees for foreign trade transactions to the Bank under the IFC Global Trade Finance Program, reported the press-centre of VTB Bank.
The agreement regulates granting of bank guarantees by IFC to VTB Bank to cover sovereign and commercial risks on trade finance transactions, initiated by issuing banks in developing countries.
The agreement will allow Russian corporate customers of VTB to perform trade finance transactions in the emerging markets, expand their sales geography and improve foreign trade conditions for their counterparts.
The IFC Global Trade Finance Program supports transactions in the emerging markets through providing bank guarantees for foreign trade operations and advisory services on trade finance.
Since the launch of the program in 2005 IFC has granted USD 7.1 bln worth of guarantees. The guarantees were provided as security of more than 5.5 thousand trade transactions in the emerging markets for more than 360 banks participating in the program.
International Finance Corporation, a member of the World Bank Group, creates opportunities to escape poverty and improve people’s lives in every region of the world. IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital and providing advisory and risk mitigation services to businesses and governments. In 2009, IFC invested USD 14.5 bln, thus contributing to capital inflow into developing countries during the financial crisis. For more information, visit: www.ifc.org.