* €20 mln finance line to facilitate foreign trade *
The European Bank for Reconstruction and Development (EBRD) is stepping up its support to Cypriot exporters and importers with a EUR 20 mln trade facility to Hellenic Bank under the EBRD’s Trade Facilitation Programme (TFP). Hellenic Bank will become the third issuing bank under the programme in Cyprus.
Through the facility the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by Hellenic Bank. In addition, Hellenic Bank will also benefit from the EBRD’s award-winning technical cooperation projects in trade finance.
“This agreement will boost intra-regional trade and contribute to the development of trade links between Cyprus and other countries where the EBRD invests. Supporting the expansion of trade finance in Cyprus is critically important for the revival of the country’s economy by creating opportunities for growth and job creation,” Lucyna StaÃ…„czak-WuczyÃ…„ska, EBRD Director, Financial Institutions.
Libor Krkoška, EBRD’s Head of Office in Cyprus, added: “We are very happy to welcome Hellenic Bank to our pioneering Trade Facilitation Programme. This agreement will allow Hellenic Bank to expand its corresponding bank network and stimulate working relationships with countries where the EBRD invests. We look forward to working together to support Cyprus’s exporters and importers.”
“Through our participation, Hellenic Bank will be in a much stronger position to further assist its clients, by providing a wider range of trade finance products in all major countries, including risk cover for bid and performance bonds related to construction and engineering services to the Middle East and other Mediterranean countries. This is just one of the many ways Hellenic Bank contributes towards the build-up and growth of the Cyprus’s economy,” said Bert Pijls, CEO of Hellenic Bank.
Hellenic Bank is a long-standing partner of the EBRD and became a confirming bank under the TFP in March 2003.
Last year, the EBRD acquired a 5.4% stake in Hellenic Bank for EUR 20 mln.
Since it was started in 1999, the TFP has promoted foreign trade to, from and among the countries in which the EBRD invests. Through the programme, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors. The TFP currently includes almost 100 partner banks in 26 countries where the Bank invests, with limits exceeding EUR 1.5 bln in total, and more than 800 confirming banks worldwide.
To date, the EBRD has invested over EUR 200 mln including trade finance lines since the beginning of its operations in Cyprus in December 2014.
