OREANDA-NEWS. December 17, 2009. IFC, a member of the World Bank Group, increased the trade finance guarantee limit for Belgazprombank from US10 million to US 30 million to help the bank finance foreign trade transactions of Belarusian companies, reported the press-centre of Belgazprombank.

In July, 2009 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. The initial GTFP limit was set at US 10 million allowing the Bank to support export and import transactions of its customers with the tenor of up to 1 year. The increased US 30 million limit will allow Belgazprombank to use guarantees from IFC to finance foreign trade deals with the tenors of up to 2 years.

Along with the USD 75 mln capital increase concluded in October, 2009 Belgazprombank strives at further strengthening its position in strategic banking areas, in particular, in supporting international trade activities of our customers and IFC’s trade finance products are a significant contribution to the development and expansion of trade solutions for Belarus companies.

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.

Belgazprombank, established in 1990 and controlled by Russia’s Gazprom group occupies leading positions in lending to the Belarusian private sector, particularly SME and retail sectors. It started its cooperation with IFC in 2005 with the USD 5 MM 5-year SME credit line.