For the first time in its recent history, the International Investment Bank (IIB) supported an exporter from Bulgaria within its Trade Finance Support Programme (TFSP). This deal helped the Bank to further diversify its portfolio of irrevocable off-balance sheet commitments related to trade finance.

On the 15th of December the IIB finalized its first deal with CJSC Alfa Bank Belarus, issuing an irrevocable reimbursement undertaking (IRU) at the request of this bank in favour of one the larger German banks, which is supporting deliveries of equipment for packaging milk and milk products from Bulgaria to the Republic of Belarus.

The role of the IIB as an intermediary bank is that of providing assistance in structuring the external trade deals, where the IIB as a reimbursing bank covers the political and commercial risks of the bank-issuer, providing a letter of credit to the confirming bank.

The inaugural deal with the Bulgarian exporter, a company called INDEX-6, explicitly demonstrates the important role the IIB plays in the support for small and medium sized businesses in its sovereign member states. The company is a medium sized Bulgarian enterprise, which specializes in the manufacture of packaging line equipment for the food processing industry, and production lines for the bottling and packaging of ketchup, mayonnaise, baby puree, vegetable oil and juices.

The TFSP effectively means that Bulgarian exporters can supply their products not only to other sovereign member countries of the IIB, but any other countries where the IIB can establish a banking “country limit”.

For further information about the TFSP please click here: https://www.iib.int/en/products/tfsp

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Closed Joint-Stock Company "Alfa-Bank" is one of the leading commercial banks in the Republic of Belarus. In terms of major business indicators Alfa-Bank is among TOP-10 largest Belarusian banks, while in terms of assets, capital and corporate credit portfolio the bank is No.8. Alfa-Bank, Belarus is a part of ALFA GROUP Concortium - one of the largest privately owned financial-investment conglomerates in the CIS. The Consortium owns 99,9% of shares of Alfa-Bank, Belarus. In recognition of high quality of services, a wide range of banking products, new opportunities in the development of the bank, an active position and assistance in the development of the financial services market in November 2017 Alfa-Bank, Belarus received the highest awards at the prestigious annual national premium as "Bank No.1", " Innovative Bank No.1" and "Bank for Small and Medium Business No.1".