Trade finance program ebrd
We added factoring to our trade programme in order to further support the transfer of innovative trade finance solutions and know-how to our countries of operations. Through the programme, we also provide financing for domestic factoring activities, in local currencies in a number of countries.
The TFP strengthens the ability of local banks to provide trade financing and gives entrepreneurs in our countries of operations the support they need to expand their import and export trade. An example of the transition and trade support process promoted by the programme is the export of refrigerators and washing machines from Russia to Tajikistan. A Tajik bank issued a letter of credit, which was confirmed by a Dutch confirming bank.
The EBRD guaranteed up to per cent of the political and commercial payment risk. Increasingly, banks in our countries of operations are using the TFP as confirming banks rather than only as issuing banks while financing exports to other EBRD countries of operations. Sectors we work in View list of sectors and key topics. Home Work With Us Overview. Guarantees The programme can guarantee any genuine trade transaction to, from and between the countries of operations. Guarantees may be used to secure payment of the following instruments issued or guaranteed by participating banks: Factoring transactions We added factoring to our trade programme in order to further support the transfer of innovative trade finance solutions and know-how to our countries of operations.
Case Study The TFP strengthens the ability of local banks to provide trade financing and gives entrepreneurs in our countries of operations the support they need to expand their import and export trade. Jordan and the EBRD. Spring - Summer Trade finance instruments include letters of credit, payment and other types of guarantees, bills of exchange or promissory notes, performance bonds and bid bonds. The EBRD takes the commercial and political risk of non-payment by issuing banks.
Issuing banks take the risk of local companies. The final beneficiaries of the programme are importers and exporters. There are no fees levied on importers or exporters. Fees for guarantees are payable by the bank requesting the EBRD guarantee. Many importers and exporters have already benefited from the Trade Facilitation Programme. In most cases, they may not have realised that their business was financed by an EBRD guarantee. Determine whether your issuing bank would be willing to issue or guarantee the required trade finance instrument and use TFP to cover the transaction.
Check the level of confirmation fees required by your buyer or client, issuing and confirming banks and agree who will bear them. Jordan and the EBRD. Spring - Summer Accessing finance in Ukraine.