WHAT is the TFFP?

The Trade Finance Facilitation Program (TFFP) was created in 2005 to support Latin-America and the Caribbean (LAC) banks’ access to international trade finance markets through technical cooperation, knowledge creation and financial products (guarantees and loans).

WHY was it created?

  • To promote development and economic growth in the region through the expansion of trade financing to LAC banks
  • To broaden the sources of trade finance available for LAC importing and exporting companies and support their internationalization
  • To support global and intraregional integration through trade
  • To ensure liquidity in periods of market volatility (program’s counter-cyclical role)

WHO can participate?

  • As Latin American and Caribbean Financial Intermediaries (LACFIs): Any private or public, non-sovereign guaranteed financial intermediary that is incorporated in one of IDB’s 26 borrowing member countries.
  • As Global Financial Intermediaries (GFIs): Any international or regional financial intermediary, with or without a sovereign guarantee.

How does the TFFP Work? 

  • Financial Products:
    • Credit guarantees issued in favor of GFIs to cover the commercial and political risks they assume on accepting eligible trade instruments issued by LACFIs. See Product Guide: Guarantees
    • Bilateral loans, co-loans and syndicated loans to LACFIs to finance their international trade portfolio. See Product Guide: Loans
  • Technical Assistance and Knowledge Creation:
    • Capacity building tools and trainings aimed at improving the trade finance capacities of LAC banks and their importing and exporting clients.
    • Publication of trade-related studies, surveys and research.

TFFP transactions

TFFP by the numbers

  • 101 financial intermediaries in Latin America and the Caribbean (LAC)
  • 21 countries in the region
  • US$ 2.85 billion in approved lines
  • Guarantees:
    • 1,326 credit guarantees issued
    • US$2.95 billion guaranteed
    • 48% in small and vulnerable economies *
  • Loans:
    • US$ 1.24 billion disbursed directly by the IDB
    • US$578.25 million mobilized (B loans and co-loans)
    • 44% in small and vulnerable economies*
  • 5,914 underlying international trade transactions
  • 4,209 SMEs supported
  • US$ 1.35 billion in LAC intraregional trade

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