NEWS | Wednesday, 22 August 2007

FIM Bank plc signs memorandum of understanding with Bladex

A memorandum of understanding with Banco Latinoamericano de Exportaciones, S.A. (“Bladex”) of the Republic of Panama was signed by FIMBank plc, the Malta-based trade finance specialised institution. This memorandum was to establish a joint-venture company, which would offer full factoring services to companies, banks and other financial institutions in Latin America, with both international and domestic coverage.
Jaime Rivera, Chief Executive Officer of Bladex, stated, “This agreement with a world-class partner in FIMBank is further evidence of Bladex’s evolving trade finance franchise. With FIMBank’s expertise in factoring, coupled with Bladex’s knowledge of Latin America and distribution capabilities, this joint venture will allow Bladex to offer a greater range of trade finance-related products and further diversify its revenue streams.”
Margrith Lutschg-Emmenegger, President of FIMBank, said, “We are honoured to partner with Bladex to launch the factoring product to Latin American countries under the most professional standards. Factoring is the fastest growing trade finance product, outperforming all other instruments in international as well as domestic trade, especially with regards to Small and Medium-Sized Enterprises (SME’s), a very important sector that supports and benefits the global economy.”
The factoring business offers a growth opportunity for FIMBank and Bladex in Latin America as companies seek to translate discounted receivables into improved cash flow.
This agreement came at a time when FIMBank Group was reinforcing its presence in the global factoring markets through its shareholding in Global Trade Finance in India, Egypt Factors in Egypt, Menafactors in Dubai and its own factoring subsidiary in Malta, in addition to a prospective partnership with a Tunisian counterparty for the North African market.