Deutsche Bank has signed a memorandum of understanding (MoU) with PTA Bank to set up an export finance guarantee programme encouraging exports of US agricultural products to buyers in eastern and southern Africa.

Dubbed GSM-102, the programme will see PTA Bank issue irrevocable letters of credit (LCs) for US agricultural imports, whilst Deutsche Bank will advise, confirm and negotiate the LCs and offer post-shipment financing.

Deutsche Bank also provides other trade finance services, including letters of credit confirmations and letters of credit post-financings outside of the GSM-102 programme.

“Participation in this programme is important for PTA Bank and will give our importers access to agricultural products from the US,” says Tadesse Admassu, president of PTA Bank. “[By] co-operating closely with Deutsche Bank will allow PTA Bank to further advance its mission of fostering economic and trade development in the region.”

Commenting on the agreement, head of trade finance and financial institutions for Western Europe and Africa at Deutsche Bank, Ulf-Peter Noetzel, adds: “As the leading bank for GSM-102 business in Africa we look forward to providing PTA bank with the highest level of service, in close co-ordination with the Commodity Credit Corporation and the US Department of Agriculture’s Foreign Agricultural Service.”