IFC Expands Cooperation with Credit Bank of Moscow to Facilitate Foreign Trade for SMEs in Russia
Moscow, March 19, 2008 — IFC, a member of the World Bank Group, today announced that it will increase the trade finance guarantee facility for the Credit Bank of Moscow, a private bank offering universal banking services. The bank will use the guarantee of up to $40 million to facilitate import-export transactions for its SME clients.
Under the agreement dated February 17, 2006, Credit Bank of Moscow received the $10 million uncommitted trade finance line, which was increased in January 2007 up to $ 25 million and by now almost fully utilized. The Credit Bank of Moscow was the first issuing bank in Russia to join the IFC Global Trade Finance Program, which supports trade with emerging markets worldwide by promoting flows of goods and services to and from developing countries. IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
IFC issued its first guarantee under the program in 2005. Since then, IFC has reached $2.03 billion in issued guarantees, representing 1,566 transactions. Today, IFC provides risk coverage for over 100 banks across 55 countries.
This is IFC's third project with the Credit Bank of Moscow, building on a partnership that began in 2004.