SABB's Managing Director David Dew said: "We are proud of our association with the IFC and of our recognition for the second year running, as the most active confirming bank
in the MENA region under the IFC's Global Trade Finance Program.
Further, comfort that the LOCs will be available to the extent both recourse obligations are not honored is based on the financial strength of the confirming banks
Under their program, GTFP offers Confirming Banks
a partial or full guarantee in covering payment risks on banks in emerging markets for trade related transactions.
It is a long standing partner of the EBRD and became a confirming bank
under the TFP in 2003.
A 75m deal has been inked by Italy's Intesa Sanpaolo with the European Investment Bank (EIB), joining as Confirming Bank
in the Trade Finance Facility in Greece, established in June 2013.
The European Investment Bank (EIB) signed today an agreement for EUR 75 million with Intesa Sanpaolo, which joins as Confirming Bank
in the up to EUR 500 million Trade Finance Facility in Greece, established in June 2013.
The facility will enable Afreximbank to increase its visibility as a credible confirming bank
for trade transactions originated by African issuing banks.
This program provides clients such as Banco de Credito de Bolivia access to a global network of confirming banks
, facilitates access to trade lines, and helps provide comprehensive solutions for small and medium enterprises.
The development bank added that the majority of African banks have small capital bases which constrain their ability to obtain adequate trade limits from international confirming banks
and to undertake sizeable transactions that have significant development impact.
The TFP Information Session focused on "Financing Foreign Trade with Cyprus" and attracted 100 representatives from issuing and confirming banks
under the programme, the International Chamber of Commerce, Vienna, the World Trade Organisation, as well as key trade finance professionals, regulators and economists.
Under this Facility, the EBRD will issue guarantees in favor of international confirming banks
, taking the political and commercial payment risk of international trade transactions undertaken by these banks in the countries where the EBRD works.
Under the programme, the EBRD not only provides guarantees to international confirming banks
, but also grants short-term loans to select banks and factoring companies for on-lending to local exporters, importers and distributors.