IFC, a member of the World Bank Group, is providing a €20 million guarantee facility to its long-term partner, ZAO Raiffeisenbank, to help expand access to trade finance for Russian companies.
The facility, offered through the Global Trade Finance Program, will allow the bank to expand trade finance operations and provide enhanced trade finance solutions for its clients.
«Joining IFC’s Global Trade Finance Program is a new step in our historically close and productive business relations with IFC,» said Pavel Gurin, Chairman of the Management Board of ZAO Raiffeisenbank. «The program will broaden our ability to meet requirements of our clients.»
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said, «We are expanding our trade finance program in Russia very actively. Today, our long-term partner, ZAO Raiffeisenbank, joined the global network. This will allow us to reach more companies and support more trade transactions in Russia.»
IFC’s Global Trade Finance Program supports trade in emerging markets worldwide by providing trade risk mitigation and trade advisory services. The program extends the capacity of banks to deliver trade finance services in challenging markets where interbank facilities may be limited. Through the program, IFC helps developing countries increase their share of global trade flows and promotes the movement of goods and services between major emerging market economies such as Russia and its neighbors.
Since the program was established in 2005, IFC has provided more than $7.1 billion in guarantees, supporting over 5,500 trade transactions into and between emerging markets through a network of more than 360 participating partner banks.
IFC started cooperation with ZAO Raiffeisenbank in 2003 and has, since then, provided the bank with $160 million of debt financing.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen International Bank-Holding AG. The bank ranks ninth in terms of assets among Russian banks based on the first quarter results of 2010, according to Interfax-CEA.
Raiffeisen International operates one of the largest banking networks in Central and Eastern Europe, covering 17 markets across the region through subsidiary banks, leasing companies, and a range of other financial service providers. The group’s nearly 56,000 employees serve around 15 million customers from more than 3,000 business outlets.