IDB issues first guarantees for Interbanco S.A. in Paraguay

The Structured and Corporate Finance Department of the Inter-American Development Bank (IDB) announced the closing of its first transactions in Paraguay with Interbanco S.A. under the IDB’s Trade Finance Facilitation Program (TFFP).

The IDB has issued guarantees for the account of Interbanco S.A. to support nearly $5.1 million in five single import transactions of agroindustrial products and machinery from Brazil to Paraguay. This benefits local agroindustrial companies. The IDB issued these guarantees in favor of Citibank N.A.

TFFP - Rolled-out in 2005, the TFFP is an effective tool for the IDB to support economic reactivation and growth through the expansion of financing available for international trade activities of Latin American and Caribbean (LAC) countries. In recent months the TFFP has shown to be of growing importance for the LAC region, as credit continues to tighten for emerging markets due to increased uncertainty and volatility in the global financial markets.

The TFFP currently comprises of a network of 181 Confirming Banks belonging to 71 different international banking groups in over 46 countries, and 36 Issuing Banks in 14 LAC countries with US$702 million in approved credit lines. To date, the IDB has issued guarantees for over US$401 million in support of 500 individual international trade transactions totaling over US$530 million

Interbanco S.A. - Interbanco is a Paraguayan bank owned by one of Brazil's leading financial institutions, Uniao de Bancos Brasileiros S.A. (Unibanco). As of September 2008, Interbanco is the second largest bank in Paraguay in terms of assets, and the largest bank in terms of equity. Through a network of 19 branches, Interbanco offers broad coverage throughout the country. While following a universal banking model, the bank expects to benefit from membership in the TFFP especially in its services and lending activities to commercial businesses, including agricultural and livestock industries.