The FINANCIAL — IFC, a member of the World Bank Group, announced that Bancop S.A., the first bank wholly-owned by cooperatives in Paraguay, has joined its Global Trade Finance Program to expand access to trade finance for companies operating in agribusiness and other sectors that are key for Paraguay’s trade balance and thus for the country’s economic growth.
“We are pleased to join IFC’s Global Trade Finance Program. This line represents an important step to increase our support to agribusiness producers and exporters in Paraguay,” said Dimas Ayala, CEO of Bancop. “The partnership with IFC will also help us expand our access to trade finance lines from international banks, allowing us to continue to help finance the growth of the country’s productive sectors.”
“This is IFC’s second financing to Bancop. We are pleased to continue to work with Bancop and be able to help improve access to finance for local companies, supporting the increase of competitiveness of the Paraguayan economy,” said Ramiro Garcia, IFC Hub Leader for Financial Institutions Group in the Southern Cone. “By joining the Global Trade Finance Program, Bancop will be able to establish stronger and far reaching relationships with banks in countries that want to trade with Paraguay. These connections are key elements of IFC’s strategy to strengthen international trade for Paraguay and the region as a whole,” noted Susanne Kavelaar, IFC Regional Lead Trade and Commodity Finance for Latin America and the Caribbean.
IFC’s Global Trade Finance Program supports trade in emerging markets by providing partial or full guarantees for individual trade transactions through an effective mitigation instrument, IFC’s triple-A credit rating. From its inception in 2005 till June 2016, IFC’s Global Trade Finance Program has already supported more than $14 billion in trade flows in Latin American and the Caribbean countries through its guarantees. More than 50% of these transactions have benefited local small and midsize businesses, over 20% were agribusiness related, and over 45% have supported trade flows between emerging market countries, reinforcing IFC’s goal to be an important facilitator of South-South investments, according to IFC.
IFC’s strategy in Paraguay promotes access to finance for the productive sector, supports micro, small, and medium enterprises, fosters global trade, and protects natural resources through environmentally sustainable business practices. IFC aims to help boost financial inclusion and increased access to finance for SMEs to enhance their competitiveness in important sectors such as agribusiness, which is a key driver of economic growth and job creation in Paraguay.