Banca Romaneasca has signed on as an issuing bank in IFC’s Global Trade Finance Program, or GTFP, which supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating.
Through its 134 branches across Romania, Banca Romaneasca provides financing to support the exports and imports of its corporate and SME clients. Access to trade finance is essential for SMEs that depend on cross-border trade to remain viable and seek new opportunities for growth in overseas markets.
“Trade finance is a key segment in our corporate banking strategy, and the Global Trade Finance Program is a natural choice for a partnership,” said Cosmin Calin, Executive Director of the Corporate Division at Banca Romaneasca. “As an issuing bank under this program, Banca Romaneasca will contribute to Romania’s economic growth by sustaining the involvement of Romanian companies in international trade.”
Georgina Baker, IFC Director of Global Trade and Supply Chain Solutions, said: “As access to credit tightens, IFC is quickly responding by deploying its resources to areas where it can have immediate impact and reach. As a GTFP issuing bank, Banca Romaneasca will expand trade finance in Romania, helping businesses expand into new markets and create jobs.”
Since its inception in 2005, IFC’s award-winning GTFP has issued more than 10,000 guarantees totaling USD14.3 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. Most significantly, in fiscal year 2011, 53 percent of the program’s total volume was to support trade in the world’s poorest countries, and 79 percent went to SMEs. The program includes more than 200 partner banks in over 90 emerging-market countries.