The European Bank for Reconstruction and Development (EBRD) is supporting Cypriot exporters and importers with a €50mn trade facility to Bank of Cyprus, under its trade finance programme (TFP). The bank becomes the second issuing bank in the country participating in the programme.
The facility enables EBRD to issue political and commercial payment risk guarantees in favour of international commercial banks for transactions undertaken by Bank of Cyprus. The bank also benefits from EBRD’s technical co-operation projects in trade finance.
Libor Krkoška, EBRD’s head of office in Cyprus, comments: “This agreement will allow Bank of Cyprus to expand its corresponding bank network and stimulate working relationships with countries where the EBRD invests. We look forward to working with the bank to support Cyprus’ exporters and importers.”
According to an EBRD statement, the programme will particularly help financing exports of construction and engineering services to the Middle East and other Mediterranean countries, including risk cover for bid and performance bonds and funding of short-term pre-export finance loans.
“With this step, Bank of Cyprus will contribute to the development of trade between Cyprus and other countries, which will strengthen the local economy by increasing exports and creating opportunities for growth and new jobs,” says John Hourican, Bank of Cyprus’ CEO.