The EBRD is partnering with Banque Centrale Populaire to strengthen bank support for Moroccan companies in terms of international trade so that they can raise the level of their contribution to the country’s economic development.
The Bank has signed an agreement with Banque Centrale Populaire establishing a US$ 50 million dollar trade finance facility from the United States to support international and intra-regional trade transactions with tenors of up to three years for guarantees and 12 months for cash advances.
The project is a substantial engagement by the EBRD in the Moroccan banking sector. It is an extension of the Bank’s Trade Facilitation Programme (TFP) and will support Banque Centrale Populaire’s export and import financing activities by facilitating the distribution of imported goods and contributing to the overall growth of small and medium-sized enterprises (SMEs).
Under the agreement, the EBRD will issue guarantees for international trade transactions made by Banque Centrale Populaire and will finance the import, export and local distribution of imported goods through short-term cash advances.
The agreement will also allow Banque Centrale Populaire to extend the maturities of its own trade finance products. Participating in the TFP will open up new opportunities to develop trade finance links with the EBRD’s countries of operations.
In addition, the EBRD has signed an agreement with Banque Centrale Populaire, which will allow the latter to confirm transactions of the EBRD's partner banks under the trade facilitation programme, thus supporting Moroccan exports.
Thus the Banque Centrale Populaire will benefit from TFP’s extensive trade finance network and technical skills transfer programme.
Francis Malige, EBRD Director Financial Institutions, Southern and Eastern Mediterranean and Turkey, said: “We are happy to welcome Banque Centrale Populaire into the EBRD's trade facilitation programme. It is a significant step for the EBRD in Morocco and it further contributes to reinforcing the integration of the Moroccan economy with its trading partners. We look forward to working with Banque Centrale Populaire and its network of regional banks to support Moroccan exporters and importers.”
Rachid Agoumi, General Manager in charge of Corporate & Int ernational Bank, Banque Centrale Populaire, said: “This new agreement is completely in accordance with the Banque Centrale Populaire's strategy for supporting and financing its international clientele. It further extends the extensive guarantee and financing facilities for foreign trade operations deployed by the Banque Centrale Populaire in support of corporate growth."
Launched in 1999, the Trade Facilitation Programme aims to promote foreign trade to, from and among the EBRD’s countries of operations. 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 TFP currently includes over 101 participating banks in 22 countries of operations with limits exceeding €1.5 billion in total, as well as more than 800 confirming banks worldwide.