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EBRD provides trade facility to Arab International African Bank

Wednesday 5 December 2018 14:52 CET | News

The European Bank for Reconstruction and Development has announced providing a USD 50 mln trade facility to the Arab African International Bank Egypt.

EBRD clarified that this step comes as part of the EBRD’s Trade Facilitation Program (TFP). As per the trade facility, the EBRD will issue guarantees in favor of international commercial banks covering the political and commercial payment risk of the transactions undertaken by AAIB, and will provide financing for export and import transactions, according to the statement.

Trade Facilitation Program (TFP) was launched in 1999, aiming to promote foreign trade to, from and among the economies where the EBRD invests. EBRD noted that through TFP it 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.

EBRD has invested over EUR 4.5 billion in 87 projects in Egypt so far, in addition to providing technical assistance to more than 750 small and medium-sized local enterprises, as Egypt is a founding member of the EBRD and has been a country of operations since 2012.


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Keywords: EBRD, The European Bank for Reconstruction and Development, Arab International African Bank, trade facility, trade finance, investment, Egypt, Trade Facilitation Program
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