EBRD signs €20 million trade facility agreement with Eurobank Cyprus

EBRD signs €20 million trade facility agreement with Eurobank Cyprus

The European Bank for Reconstruction and Development (EBRD) signed on Wednesday a €20 million trade facility agreement with Eurobank Cyprus under the EBRD’s Trade Facilitation Programme(TFP) aiming at supporting the expansion of international trade in Cyprus.

Through the facility the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by the Eurobank.

In addition, Eurobank Cyprus will also benefit from the EBRD’s award winning technical cooperation projects in trade finance.

The agreement was signed by the head of the Cyprus office of the EBRD Libor Krkoska and CEO of Eurobank Cyprus Michalis Louis.

In his introductory speech, Krkoska noted that “this is our first ever trade finance facility in Cyprus. This alone makes it an historic event, as it shows our new Mediterranean countries taking a more active role in the demand of TFP product”.

Lucyna Stanczak-Wuczynska, EBRD Director, Financial Institutions, said: «This is a very important step to widen and deepen our engagement in Cyprus. The EBRD will aim to contribute to boost intra-regional trade and will contribute to the development of trade links between Cyprus and other countries where we invest. Extending trade is an important way of strengthening the local economy by creating opportunities for growth and the EBRD would like to be more engaged in working with Cypriot banks”.

CEO of Eurobank Cyprus Michalis Louis said that “we are particularly pleased and honored to sign this agreement with the EBRD today. This facility will enable and assist our clients operationally and in a cost- efficient manner to promote their export/import businesses. At the same time, it is a vote of confidence for the Cyprus economy and our bank by a major and very well-respected international institution. We are looking forward to expand our cooperation with the EBRD in other areas of mutual interest”.

The signing took place in the framework of the EBRD’s first Trade Facilitation Programme(TFP) Information Session in Cyprus, held in the southern coastal town of Limassol, on “Financing Foreign Trade with Cyprus” which attracted up to 100 representatives from issuing and confirming banks under the programme, the International Chamber of Commerce, Vienna, the World Trade Organization, as well as key trade finance professionals discussing industry challenges with leading specialists including regulators and economists.

The main topics of discussion were the latest trends and developments of trade finance in the region including factoring and supply –chain finance.