EBRD Trade Facilitation Programme extends activities to Mongolia

Sep 10 • Business, Economy, Government • 672 Views • No Comments on EBRD Trade Facilitation Programme extends activities to Mongolia

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

LONDON. September 10. KAZINFORM. The EBRD’s Trade Facilitation Programme (TFP) has successfully extended its risk cover to Mongolia. The Bank’s first transaction under the programme in the country will facilitate imports of cars from Germany and covers 100 per cent of the payment risk of a letter of credit worth $600,000 issued by Khan Bank to BHF Bank in Germany.

Established in 1999, the Trade Facilitation Programme supports trade to, from and within the EBRD’s 29 countries of operations. TFP assists participating banks in building track records with their correspondent confirming banks, reducing cash collateral requirements and freeing up clients’ working capital by providing guarantees to confirming banks for the payment of various trade finance instruments issued by local banks.

Since the start of the programme in 1999, TFP has facilitated more than 7,400 foreign trade finance transactions worth ˆ4.5 billion, undertaken by 106 banks in 20 EBRD countries of operations in eastern Europe and the Commonwealth of Independent States, the EBRD’s press release reads.

Along with providing otherwise unavailable or scarcely available trade finance guarantee facilities, the EBRD – with the support of ˆ170,000 from the Mongolia Technical Cooperation Fund – has organised a trade finance advisory services project for Khan Bank and three other banks in Mongolia. The project provides training, know-how transfer and operational guidance in trade finance.

Barry Maddams, Deputy CEO of Khan Bank, said “the practical approach by EBRD trade advisor Vincent O’Brien is paying dividends in terms of new trade finance business which will in turn help us maximise the benefits of the Trade Facilitation Programme.”

The programme is an important tool of the EBRD’s Early Transition Countries initiative which aims to stimulate market activity in Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan and Uzbekistan by financing smaller projects. Transactions benefiting small and medium-sized enterprises form the majority of TFP business: More than 50 per cent of deals concluded since the start of the programme cover smaller transactions below ˆ100,000.

This year the programme is again on course for a new record in terms of completed transactions and business volume. In 2007, the best year so far, the business volume rose to ˆ781 million from ˆ707 million in 2006. The programme now includes more than 100 issuing banks in the region, with limits exceeding ˆ1 billion in total, and 646 confirming banks throughout the world.

SOURCE: Kazinform

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

« »