EBRD in € 20m TF deal with Eurobank, no im­pact ex­pected from Greece

Financial Mirror (Cyprus) - - FRONT PAGE -

The Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD) has signed a EUR 20 mln trade fi­nance fa­cil­ity with Eurobank Cyprus un­der the EBRD’s Trade Fa­cil­i­ta­tion Pro­gramme (TFP) aim­ing at sup­port­ing the ex­pan­sion of in­ter­na­tional trade on the is­land.

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 Eurobank.

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

The agree­ment was signed by the head of the EBRD’s Cyprus of­fice Libor Krkoska and Eurobank Cyprus CEO Michalis Louis on the side­lines of the EBRD’s first TFP In­for­ma­tion Ses­sion in Cyprus, held in Li­mas­sol.

In his 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, added that “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”.

Eurobank’s Michalis Louis said that “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”.

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.

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

Af­ter the event, the EBRD’s Cyprus of­fice head Libor Krkoska said that the bank will do its best to min­imise the im­pact of the Greek cri­sis on the Cyprus econ­omy and that the EBRD is mon­i­tor­ing the sit­u­a­tion in Greece very care­fully.

“We are also mon­i­tor­ing what is hap­pen­ing here in Cyprus and so far it seems that the Greek cri­sis has lit­tle im­pact on Cyprus,” he noted.

He also noted that “we will do our best to sup­port the sta­bil­ity of both the fi­nan­cial sec­tor and lo­cal com­pa­nies so that the im­pact on the Cypriot econ­omy will be min­i­mal.”

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