Belarus’ Belgazprombank will be increasing its trade finance activities after having won an extension on its limits under the European Bank for Reconstruction and Development (EBRD’s) trade facilitation programme.
The EBRD has increased limits 10 times, to US$10mn from US$1mn.
At any one time, Belgazprombank can now have exposure to foreign trade deals of up to US$10mn under the EBRD initiative.
The increased limits reflect the EBRD’s aims of increasing the volume of trade finance business being conducted by issuing banks operating in the trade programme.
Belgazprombank joined the trade programme in 2004, and to-date has used it to finance foreign trade transactions worth over US$3mn.
The EBRD has also just signed a US$30mn loan agreement with the Belarussian bank to finance micro-, small and medium-sized businesses in Belarus.
Earlier is July, the IFC provided the bank with US$10mn in trade finance guarantees to boost the bank’s ability to finance the foreign trade activities of Belarussian companies. The bank joined the IFC’s trade facilitation scheme as an issuing bank hoping to access the IFC’s network of trade finance institutions.
Last Updated July 23, 2009
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