Taiwan state export bank signs accords with banks in Mexico, Panama

Taipei, Oct. 22 (CNA) The state-owned Export-Import Bank of the Republic of China (Eximbank) in Taiwan has signed relending facility agreements with two private banks in Mexico and Panama in an effort to help Taiwanese exporters sell goods to the Latin American market.

In a statement, Eximbank said on Monday that it signed a relending facility accord with Intercam Banco, S.A. of Mexico in September and inked a similar agreement with BAC International Bank, Inc. of Panama in October.

Under the relending facility accords, which seek to encourage foreign businessmen such as end-users and dealers to purchase goods sold by Taiwan exporters, Eximbank will provide loans to the two private banks in Latin America, which then relend the money to importers in the region to pay for merchandise sold by Taiwanese exporters.

Eximbank said such an arrangement is expected to reduce the financial burden shouldered by importers there and increase their willingness to buy goods made in Taiwan, eventually building a long-term partnership and creating a win-win situation.

Eximbank typically helps to boost Taiwan's import and export trade by offering financial services such as export credit insurance and extending credit lines to domestic and foreign financial institutions, which then relend the funds to their clients for the import of Taiwan products.

According to Eximbank, Intercam Banco, established in 2006 and headquartered in Mexico City, has 59 branches and offices, and specializes in foreign exchange business, international payments, derivative financial product trading, investment and commercial banking.

As for BAC International Bank, Eximbank said, the bank, set up in 1995 and headquartered in Panama City, is the largest private commercial bank in Central America, with 311 branches. The Panamanian bank is known for retail banking and corporate banking.

Citing data from the Customs Administration of Taiwan's Ministry of Finance, Eximbank said bilateral trade between Taiwan and Mexico totaled US$7.01 billion in the first nine months of this year with exports from Taiwan to Mexico hitting US$5.1 billion.

During the same period, bilateral trade between Taiwan and Panama totaled US$140 million, with exports from Taiwan to Panama hitting US$71.60 million, the data showed.