This year, we celebrate 20 years of the Trade Finance Facilitation Program (TFFP) by IDB Invest. Since its inception in 2005, it has been a key pillar in strengthening foreign trade and supply chains in Latin America and the Caribbean.

Over these two decades, we have worked continuously to improve access to financing, support the internationalization of companies, and ensure liquidity during times of volatility and uncertainty.

Over the past 20 years, the TFFP has established a network of more than 300 partner banks in 41 countries, including 124 financial intermediaries in Latin America and the Caribbean.

Currently, the program has $4.9 billion in available credit lines across 24 countries in the region.

Inclusive Approach

The impact of the TFFP in LAC has been significant. We have helped exporters and importers in the region better leverage their competitive advantages by increasing, diversifying, and stabilizing available financing options.

We have supported and promoted intra-regional trade. Our approach has been inclusive, supporting both large corporations and small and medium-sized enterprises (SMEs) and promoting financial inclusion in the region’s less developed countries.

One of the TFFP’s most notable achievements has been its ability to adapt to changing market needs and respond during periods of market volatility and uncertainty (countercyclical role).

We have implemented in-person workshops and online courses to enhance the international trade skills and knowledge of banks in Latin America and the Caribbean, as well as their clients.

Additionally, we have launched cultural immersion programs with countries such as Japan and Korea, strengthening commercial and cultural ties.

Tangible Impact

Over these 20 years, we have facilitated 36,000 foreign trade transactions in the region through loans and guarantees, totaling $21 billion, including $4.77 billion in mobilized third-party capital.

The impact is tangible:

• 79% of these transactions have supported more than 15,000 SMEs
• 69% have taken place in less developed countries
• 27% have promoted intra-regional trade
• 44% have supported food security
• 16% have promoted sustainability and inclusion (see chart)

The TFFP was born out of the need to reactivate the regional economy through foreign trade financing.

Since then, we have evolved to offer a diverse range of financial products and technical advisory services.

This growth has been made possible thanks to our network of local, regional, and international banks, which have collaborated to provide efficient and sustainable financial solutions.

Looking Ahead

Looking to the future, the TFFP is committed to continuing to drive economic development in the region. Our goals include:

• Regional Integration: Promote regional integration by facilitating trade and investment among countries in the region. Boost the flow of goods and services, fostering regional economic growth, job creation, and overall private sector development.
• Climate: Support the trade of goods and services that help companies adopt energy-efficient technologies, reduce environmental impact, and ensure sustainable operations.
• Digitalization of International Trade: Finance advanced technologies for greater efficiency and transparency.
• Access to Financing for SMEs: Develop financial products tailored to the needs of SMEs, facilitating access to international markets.
• Value Chains, Energy and Food Security: Promote the resilience of supply chains and the integration of regional companies into global value chains. Support key sectors to address critical issues, including energy and food security, as well as regional stability.

The 20th anniversary of the TFFP is an opportunity to reflect on our achievements and renew our commitment to the economic development of Latin America and the Caribbean.

We are deeply grateful to our clients, partners, and collaborators for their trust and support.