IDB Invest Welcomes South Korea's KEXIM to its Trade Finance Facilitation Program
PANAMA CITY – At a signing ceremony during the Annual Meeting of the Boards of Governors of the Inter-American Development Bank (IDB) and IDB Invest in Panama this week, IDB Invest CEO James Scriven and KEXIM Chairman and President Hee-Sung Yoon announced the incorporation of KEXIM, an official export credit agency in South Korea, as a Confirming Bank in IDB Invest’s Trade Finance Facilitation Program (TFFP).
Under the Confirming Bank Agreement, IDB Invest extends guarantees to cover letters of credit, bills of exchange, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions.
Under the TFFP, through a broad network of local and global banks, IDB Invest provides technical cooperation, knowledge creation and financial products, which aim to facilitate access to international trade finance markets for Latin American and Caribbean banks, thereby broadening the sources of trade finance available for regional exporters and importers. The program aims to foster global and intraregional integration through trade and ensure liquidity in periods of market volatility.
“At IDB Invest, we are pleased to strengthen our relationship with KEXIM and the commercial linkages between Asia and the region,” said James Scriven, CEO of IDB Invest. “This is part of our strong commitment to reinforce financing and boosting trade in the region."
Hee-Sung Yoon, chairman and president of KEXIM said: "It is a great pleasure to conclude this confirming bank agreement with IDB Invest. We expect this collaboration will promote the increase of trade volumes and economic cooperation between the Latin America and Caribbean region and South Korea, as more companies will benefit from this program. Having the biggest network with financial institutions in the Latin America and Caribbean region, we have no doubt that IDB Invest shall be the optimal partner to KEXIM in expanding our business opportunities in the region, which is a significant market for South Korea."
By joining the program, KEXIM will strengthen its provision of trade finance to support trade between Latin America and the Caribbean and South Korea, while broadening its relationships with banks and regional coverage. Through this partnership, KEXIM and IDB Invest confirm their commitment to support trade exchanges between South Korea and Latin America and the Caribbean.
The deal is expected to contribute to two United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8) and Reduced Inequalities (SDG 10).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
The Export-Import Bank of Korea, KEXIM, is an official export credit agency, providing comprehensive loan and guarantee programs to support Korean companies conducting business overseas. Since its establishment in 1976, KEXIM has actively supported Korea’s export-led economy and facilitated economic cooperation with foreign countries. Its primary services include export finance, trade finance and guarantee programs structured to meet the needs of clients in a direct effort to both complement and strengthen clients’ competitiveness in global markets. KEXIM also provides overseas investment finance, import finance and financial advisory and arranging services aimed at exploiting business opportunities abroad. Furthermore, it is responsible for the operation of two government-entrusted funds: the Economic Development Cooperation Fund (EDCF), a Korean Official Development Assistance (ODA) program, and the Inter-Korean Cooperation Fund (IKCF), an economic cooperation program to promote exchanges with North Korea.