The International Finance Corporation (IFC) has authorized increasing the trade finance guarantees available to Belarusian Belgazprombank from $10 million to $30 million as part of the program meant to foster Belarus’ foreign trade, Belgazprombank representatives told.

The increased resources will enable Belgazprombank to provide more financing for foreign trade operations of Belarusian companies.

In July 2009 Belgazprombank joined the IFC’s Global Trade Finance Program as an issuing bank, gaining access to a global network of banks supporting trade finance operations. The initial $10 million limit of guarantees enabled the bank to finance export and import operations of its clients for up to one year. With the ceiling raised to $30 million, Belgazprombank will be able to provide financing for up to two years.

On the whole, the bank is intent on building up its status in strategic areas of banking, in particular, the financing of overseas trade operations of its clients. The IFC’s trade finance products make a considerable contribution to supporting the development of foreign trade activities of Belarusian companies.

Under the Global Trade Finance Program, which was launched in 2005, the 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 as well as financing terms on a competitive basis.

Founded in 1990 and controlled by Russia’s Gazprom, Belgazprombank is Belarus’ leading provider of finance to private sector, in particular, finance to small and medium businesses, and a leading provider of retail loans. Belgazprombank-IFC cooperation began as part of a program for financing small and medium companies in 2005.

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