EBRD has just loaned about EUR10 million trade finance facility to Alpha Bank Cyprus.
The bank said the loan is for guarantees in favour of confirming banks to cover the political and commercial risk of trade finance instruments issued by the bank to facilitate foreign trade finance activities.
Alpha Bank Cyprus is a commercial bank offering a full range of banking services in the local market. The small scale of the domestic market makes trade and export competitiveness a major task for Cypriot business. For this, the support of the financial sector with products tailored to market demand is key, especially for small and medium-sized enterprises (SMEs).
EBRD President Sir Suma Chakrabarti said at the signing in Nicosia today: “This is a very important step to widen and deepen our engagement in Cyprus and we are especially proud to sign the agreement today in the context of our 2017 Annual Meeting and Business Forum in Cyprus. We expect the facility to strengthen Alpha Bank Cyprus’ position in the market, especially by supporting ‘Green Trade Finance’ and facilitating SMEs access to finance.”
Mr Koutentakis, Alpha Bank Cyprus Managing Director added: “Alpha Bank Cyprus Ltd enters into this Trade Finance Programme with a view to expand its business, supporting its Customers in the context of their international trade finance transactions, through cost-efficient alternatives and innovative solutions. We are confident that our valuable alliance with EBRD will contribute to the strengthening and the expansion of our Customers’ activities”.
The EBRD’s Trade Finance Programme (TFP), launched in 1999, aims to promote foreign trade to, from and among the countries in which the EBRD invests. Through the Programme, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors.
The EBRD’s TFP currently includes 96 partner banks in 26 countries where the EBRD invests, with limits exceeding €1.5 billion in total and more than 800 confirming banks worldwide.