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.
- See list of participating LACFIs
- As Global Financial Intermediaries (GFIs): Any international or regional financial intermediary, with or without a sovereign guarantee.
- See list of participating GFIs
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 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
- 1,326 credit guarantees issued
- US$2.95 billion guaranteed
- 48% in small and vulnerable economies *
- US$ 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
For more information visit www.iadb.org/tffp