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IDB Invest–a member of the IDB Group – has incorporated Republic Bank Guyana into its Trade Finance Facilitation Programme (TFFP) paving the way for the country to have US$20M line of credit.
In a statement, the Inter-American Development Bank (IDB) explained IDB Invest incorporated three subsidiaries of Republic Financial Holdings Limited (RFHL) in Barbados, Guyana and Suriname into its TFFP by opening lines of credit to be used for short-term international trade finance transactions with the intention to offer support to local small and medium sized enterprises (SMEs).
“These three lines consist of an uncommitted US$20 million TFFP line each to both Barbados and Guyana, as well as a US$15 million line to Suriname. They will support the Bank’s ability to finance its customers’ import and export activities in Barbados, Guyana, and Suriname,” the bank explained.
It added: “Given the current context of high volatility in international markets and macroeconomic pressures from the COVID-19 health crisis, these lines will help, not only to alleviate the Bank’s funding tensions in the short term, but also to diversify its sources, and reducing dependence on deposits.”
According to the IDB, it will also help the bank to increase its supply of foreign trade products to its SME clients, adjusting its supply to the current context of these demands.
“At IDB Invest, we are pleased to close three transactions with Republic Financial Holdings Limited through our Trade Finance Facilitation Program in Barbados, Guyana and Suriname. With this program, Republic Financial Holdings Limited can diversify its network of partners offering trade finance products for imports and exports, including loans and guarantees, to its clients in these countries. This is part of our strong commitment to reinforce financing and boost trade within the Caribbean region,” James Scriven, CEO of IDB Invest said.
Nigel Baptiste, President and CEO of RFHL said as one of the leading financial institutions across the Caribbean region with an international footprint in Ghana, RFHL has an obligation to provide financial and developmental support. “Our support remains grounded in the framework of sustainable development, and the belief that the changes we make today can and will positively impact the generations of tomorrow,” Baptiste said.
He added that regional SMEs can be the champions of their alliance with IDB Invest. “We believe that this alliance will break down the barriers that exist for SMEs and facilitate new relationships with international markets while maintaining established ones. We have an opportunity to create a robust hub for trade and investment into the region while increasing employment,” he said.
IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector.
