Guarantees
Through its Trade Facilitation Programme the EBRD provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in its regions.
The programme can guarantee any genuine trade transaction to, from and among those regions.
If you sell to or buy from the EBRD regions, guarantees can help you secure payment from your clients (buyers) or performance from your suppliers.
Our guarantees can support the following instruments issued or guaranteed by local banks:
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letters of credit and standby letters of credit
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deferred payment and ‘red-clause’ letters of credit
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advance payment guarantees and bonds, and other payment guarantees
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bills of exchange and trade-related promissory notes
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bid and performance bonds and other contract guarantees
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letters of credit with post-financing to cover finance of imported capital equipment
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other types of trade finance instruments can also be considered
Trade-related cash advances
We also provide short-term cash advances to selected local banks and factoring companies in the EBRD regions for on-lending to local exporters, importers and distributors exclusively for the purpose of pre- and post-shipment financing and other financing of working capital necessary for the performance of foreign trade contracts and domestic and international factoring operations.