How the TFP works

What is the TFP? | What does it provide? | Goods and services covered | Risk share participation

What is the Trade Facilitation Programme?

The EBRD's Trade Facilitation Programme (TFP) promotes foreign trade in its countries of operations.  

Through the TFP, we provide guarantees to international confirming banks, shouldering the political and commercial payment risk of transactions undertaken by issuing banks in the countries where the Bank operates. 

The programme can guarantee any genuine trade transaction associated with exports and imports amongst our countries of operations. 

Over one hundred issuing banks in the Bank's countries of operations participate in the programme together with over eight hundred confirming banks throughout the world.

What does it provide? 

The TFP is an excellent business development tool, providing: 

• cover for a broad range of trade finance instruments
• unconditional guarantees payable on first written demand
• guarantees of up to 100 per cent of the face value of the underlying trade finance instruments
• uncommitted trade finance lines and transaction approval on a case-by-case basis
• reasonable fee levels that are agreed separately for each transaction
• a fast and simple approval procedure to issue guarantees
• short-term trade related loans to selected local banks for on-lending to local exporters and importers

Goods and services covered by the Trade Facilitation Programme

Our guarantees cover a wide range of goods and services. These include consumer goods, commodities, machinery, power supply, cross-border engineering, construction, ship-building, technical and other services.

Some environmentally related activities are considered, requiring an Environmental Due Diligence Summary to be prepared. 

Some activities, products and substances are not eligible for finance under the Trade Facilitation Programme. These can be found on the environmental and social exclusion list. 

Risk share participation 

Risk sharing funds

Risk sharing funds are a concept adapted for transition by the EBRD which help banks obtain access to international finance.  

We currently have four risk sharing funds:

South Eastern Europe Initiative (SEEI)
SEEI covers Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Romania and Serbia and Montenegro. Donors include Austria, Germany, the Netherlands, Norway and Switzerland and the fund totals €13.9 million.

Central Asia Risk Sharing Special Fund (CARSSF)
CARSSF covers the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan.  Donors include Germany and Switzerland and the fund total €8.6 million.

Financial Intermediary Investment Special Fund (TIISF)
TIISF covers Moldova, Armenia and Georgia. The donor contribution is €9.5 million from the Netherlands. 

Financial Intermediary Investment Special Fund (FIISF)
FIISF covers Azerbaijan, Russia and Ukraine. The total fund is €7.5 million with a donor contribution of €3.76 million from ICDF of Taiwan.

Last updated 22 May 2012