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OPEC Fund for International Development and EBRD’s Trade Facilitation Programme sign cooperation agreement
Risk sharing will help boost trade for CIS
The EBRD will increase trade activities for countries across the Commonwealth
of Independent States after signing a cooperation agreement with the Opec Fund
for International Development (OFID), under which OFID will share risk in the
EBRD’s Trade Facilitation Programme.
Under the programme, the EBRD provides guarantees for local issuing banks,
which in turn provide trade guarantees for local importers or exporters. The
cooperation agreement with OFID will enable the EBRD to increase its exposure
significantly for selected issuing banks. It is envisaged that first countries
to benefit will be Azerbaijan and Tajikistan and other countries are expected
to follow suit.
The support from OFID is a further milestone in our long-standing cooperation
with OFID, said EBRD President Jean Lemierre. “Thanks to OFID’s support we
will be able to increase the risk-taking capacity to further develop trade
across the CIS and so support economic growth and create jobs”, he added.
Suleiman Jasir Al-Herbish, Director-General of OFID, said: “This is an
important region for OFID and we are pleased to join forces with the EBRD to
help these countries to strengthen their economies by promoting international
trade flows.”
Established in 1999, the TFP supports trade to, from and within the EBRD’s 29
countries of operations. It assists issuing banks in building track records
with their correspondent confirming banks. This reduces cash collateral
requirements and frees up clients' working capital by providing guarantees for
the payment of various trade finance instruments issued by local banks. The
EBRD programme has been a template for other International Financial
Institutions now actively involved in trade finance.
Under the TFP, the EBRD has facilitated 6,000 trade deals worth over €3.3
billion. The programme now includes more than 100 issuing banks in the region,
with limits exceeding €1 billion in total, and 630 confirming banks globally.
Notes to Editors
The OPEC Fund for International Development (OFID) is an intergovernmental
development finance institution established in 1976 by the members states of
the Organisation of the Petroleum Exporting Countries (OPEC). The aims are to
promote cooperation between OPEC member states and other developing countries
to help particularly the poorer, low-income countries in pursuit of their
social and economic advancement. OFID is currently engaged in 119 countries,
worldwide. Additional information on the institution can be found at
www.ofid.org
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