He Reserve Bank and the International Finance Corporation (IFC), member of the World Bank Group, signed a strategic agreement to strengthen financing to the foreign trade in the country.
The operation establishes a ease of guarantees uncommitted up to 100 million dollars to support payment obligations associated with the operations of foreign trade of the Dominican financial entity.
According to a press release from the banking entity, the terms of the agreement are framed in the Global Trade Finance Program (GTFP) of IFC and expand the capacity of Banreservas to finance international operations, with the support of the development institution as guarantor, thus reducing the entity’s exposure to international banks.
- The executive president of Banreservas, Leonardo Aguilerastated that the signature represents a important step for the institution, by projecting its strength and leadership beyond the Dominican financial system.
“This alliance strengthens our ability to accompany Dominican productive sectors in their international operations and opens new opportunities so that more companies can compete, grow and access global markets”said Aguilera.
The agreement was signed by Aguilera and Nathalie Louatglobal director of foreign trade of IFC.
Economic impact
The banking executive highlighted that, with this agreement, Banreservas reaffirms its commitment to compliance with international standards regarding prevention of money laundering y financing of terrorism, transparency and good practices, anti-corruption regulationsas well as due diligence and customer knowledge.
He added that this alliance will allow strengthening the foreign trade ecosystem of the Dominican Republic, expand the access to credit for the business sector, increase the competitiveness of Dominican exports and promote the economic growth and the generation of jobs.
For its part, Carolina Rendonrepresentative of World Bank Group in the Dominican Republic, expressed: “We are pleased to join forces with Banreservas to energize the foreign tradeempower local companies and generate more jobs in the Dominican Republic”.
Benefited sectors
A relevant aspect of the agreement is that operations may be carried out in the main international currencieslike dollars, euros and yen, which expands the capacity of Banreservas to participate in transactions foreign trade the global scale.
The agreement contemplates direct benefits for clients of Banreservas linked to activities of export and importindustry and manufacturing, commerce and distribution, agribusiness, as well as small and medium businesses.
These clients will be able to access better financing conditionsexpand its presence in international markets and reduce risks associated with their commercial transactions. The facilities do not apply to companies linked to certain excluded activitiesincluding weapons, tobacco, gambling and sectors considered environmentally sensitive.
Among the instruments contemplated in the agreement between Banreservas e IFC figuran documentary letters of creditletters of credit standby, bank guaranteespromissory notes and bills of exchange, as well as financing and discounting of commercial instruments.
Through this association, Banreservas joins as a member of the GTFPthe program IFC designed to mitigate risks in emerging markets through guarantees in trade-related transactions. Since its launch, the initiative has provided 141 billion dollars in support of financing of trade in more than 100 emerging markets.
Source: www.diariolibre.com
