Republic Bank (Guyana) Limited (RBL) has gotten approval for a US$20 million line of credit from the Inter-American Development Bank (IDB) under its Trade Finance Facilitation Programme (TFFP).
This approval, which was announced by the IDB yesterday, makes RBL the second local financial institution to join the TFFP. Demerara Bank Limited joined the programme in October.
The TFFP programme is implemented by IDB Invest, a multilateral development bank (member of the IDB group) which aims to provide financial and technical support for projects that contribute to private sector development, such as those supporting small and medium-sized enterprises through financial intermediaries.
According to a release from the bank, the IDB Group has incorporated three subsidiaries of Republic Financial Holdings Limited (RFHL) in Barbados, Guyana and Suriname into 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 release explained.
James Scriven, CEO of IDB Invest is quoted as stating that with this program, RFHL 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,” he explained.
Nigel Baptiste, President and CEO of RFHL noted that his institution has an obligation to provide financial and developmental support to the markets of the region.
“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,” he stated adding 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,” Baptiste concluded.
The statement explained that given the current context of high volatility in international markets and macroeconomic pressures from the COVID-19 health crisis, the credit lines will help, not only to alleviate […]