The International Finance Corporation (IFC), a member of the World Bank Group, and Banca Comerciala Romana (BCR), member of the Erste group, decided to join forces to expand the availability of trade finance for importers and exporters in Romania helping to spur economic growth and create jobs.
More exactly, IFC has extended a USD 50 million credit trade line to BCR under the Global Trade Finance Program (GTFP), which supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating, a press release informs.
BCR has joined the program as an issuing bank. Participation in the program will enable BCR, the leading trade finance intermediary in Romania, to expand its reach to banks across the globe, support the entrance of Romanian companies into new markets, and increase trade ties across the European Union and beyond.
“We focus on supporting exporters and supply chain-driven manufacturing because we have seen excellent export-driven economic growth and companies that mitigate risk while maintaining turnover. We are committed to helping the economy advance, especially by leveraging financial intermediation to boost trade and entrepreneurship,” said Sergiu Manea, Vice President for Corporate & Markets at BCR.
In his turn, Marcos Brujis, IFC Global Industry Director, Financial Institutions Group,pointed out that the access to trade finance is especially essential for small and medium enterprises that depend on cross-border trade to remain viable and seek new opportunities for growth.
Since its inception in 2005, IFC’s award-winning Global Trade Finance Program has issued more than 21,000 guarantees totaling USD 36 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. The program includes more than 280 partner banks in over 95 emerging-market countries.