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.
Ameribank has been included in the list of EBRD confirming banks
Additionally, since the bank gets to choose the confirming bank
, everyone will be aware of which bank that is, meaning the risk of an injunction is still present in a confirmed LC.
Most African banks confront major hurdles in obtaining credit support from international confirming banks
to undertake sizeable transactions largely due to their relatively small capital bases.
is an achievement, as Ameribank has been included in the list of EBRD confirming banks
Banque Paribas case, in which the court ruled that if a confirming bank
discounted its own deferred payment undertaking it did so at its own risk, and if fraud were established prior to the maturity date, the issuing bank was not obliged to reimburse the confirming bank
Confirmed Irrevocable Letter of Credit (CILC)--This transaction moves the financial responsibility for payment from your customer to the confirming bank
(preferably a US bank).
The confirming bank
creates the same obligation to the beneficiary as the issuing bank when the confirming bank
adds its confirmation.
This requires the confirming bank
to review the credit risk of the issuing bank and protects the exporter if either the importer or the issuing bank becomes insolvent.
IFC covers payment risks for 172 banks in 77 countries, under which, First Gulf Bank will register all of its branches and subsidiaries as a Confirming Bank
, which will allow FGB to undertake risk exposure in emerging markets private trade flows with the safeguarding of the IFC and its availing covers.
It is worth noting that FRB operates in Africa both as an originating institution and as a confirming bank
It is a long-standing partner of the EBRD, and became a confirming bank
under the TFP in March 2003.