AMSTERDAM, January 20, 2017 /PRNewswire/ --
German government-owned development bank KfW has directed an additional investment of USD 2.2 million from The German Federal Ministry for Economic Cooperation and Development (BMZ) into the Dutch financial markets development company Frontclear. The investment increases Frontclear's first loss tranche, aiding Frontclear's efforts to boost the stability of interbank markets in emerging and frontier countries. KfW has already provided significant financial support to Frontclear by counter-guaranteeing the obligations of Frontclear up to USD 100 million.
"KfW's support to Frontclear has been unwavering since our inception and we wish to thank KfW and BMZ for realizing this new investment. The additional first loss funding is proving to be critical for our fund raising program and thus for the future growth of our company", says Philip Buyskes, CEO of Frontclear.
Frontclear is a financial markets development company focused on catalyzing stable and inclusive interbank markets in emerging and developing countries (EMDC). Frontclear facilitates access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution's counterparty credit risk. This on the condition that local currency assets can be used for collateral management purposes. Frontclear's Basel III compliant guarantees specifically cover due payment of the Early Termination Amount under ISDA contracts and corresponding claims under GMRA. The guarantees are in turn counter-guaranteed by KfW, a AAA-development financial institution. The guarantees are complemented by a technical assistance programme (FTAP). FTAP supports targeted and planned interventions in bank and system development, which reduce the operational and country risks obstructing interbank trading. Frontclear is funded by European governments and development finance institutions including DFID, EBRD, Proparco, KfW and TCX.
For further information, please visit http://www.frontclear.com