OREANDA-NEWS On 05 October was announced, that IFC, a member of the World Bank Group, provides a USD 20 mln trade finance guarantee to Ukraine’s OTP Bank to help the bank expand its foreign trade financing and increase access to finance for private sector businesses.

OTP Bank is Ukraine’s third commercial bank to join the IFC Global Trade Finance Program as an issuing bank.  The bank will have access to the program’s global network of more than 170 issuing banks and over 180 confirming banks.

“Ukraine’s economy is export-driven and IFC’s trade finance program will help us expand foreign trade and support our customers’ international transactions, thus playing a vital role in the country’s economic recovery,” said Dmitriy Zinkov, OTP Bank Chairman.

Through the trade finance program, IFC provides partial or full guarantees for individual trade transactions and covers the payment risk of issuing banks in various countries.  It allows issuing banks to increase the volume and value of trade transactions, with enhanced tenors and access to competitive pricing terms.

“We are pleased that another Ukrainian bank will benefit from IFC’s Global Trade Finance Program,” said Elena Voloshina, IFC Country Representative in Ukraine.  “IFC financing will help facilitate trade flows, enabling local small and medium businesses to reach new customers and new markets.  OTP Bank is our long-standing partner in Ukraine and we are glad to continue cooperating.”

In July 2009, IFC provided a USD 40 mln trade finance guarantee to the JSC State Export Import Bank of Ukraine to support its foreign trade operations.  In 2008, IFC provided a USD 30 mln trade finance line to Ukraine’s Raiffeisen Bank Aval under the Global Trade Finance Program.