The European Bank for Reconstruction and Development (EBRD)’s award-winning Trade Facilitation Programme (TFP) was set up in 1999 to promote and facilitate trade to, from and within the economies where the EBRD invests.
Under the programme, we provide guarantees to international commercial banks, thereby covering the political and commercial payment risk of transactions undertaken by partner banks in the EBRD regions.
We also extend short-term loans to selected partner banks and factoring companies to fund trade-related advances to local companies for pre-shipment and post-shipment finance, as well as other financing necessary for the performance of foreign trade contracts and domestic and international factoring operations.
Being part of the TFP means that our partner banks are better able to provide trade financing to their clients, in turn giving entrepreneurs across the EBRD regions the support they need to increase their access to the import and export trade.
We cover all types of trade finance instruments, such as letters of credit, counter-guarantees, promissory notes, bills of exchange, stand-by letters of credit, irrevocable reimbursement undertakings (IRU), bid bonds and performance bonds.
These instruments can be issued to support all types of goods, except activities, products and substances listed in the TFP Environmental and Social Exclusion List.
In line with the EBRD’s Green Economy Transition approach, the Green Trade Facilitation Programme (Green TFP) was set up in 2016. It allows partner banks to use their existing trade finance facilities to finance the export, import and local distribution of imported green technologies and materials to aid climate change adaptation and mitigation.
We are equally working to accelerate the digital transition of trade finance and correspondent banking. Using policy dialogue, along with awareness and capacity building, we aim to bridge the digital gaps between our partner banks and global banks. Supporting our partner banks in their digital transition will pave the way for new and innovative trade finance business, and allow them to develop further trade throughout the economies where the EBRD invests.
Since factoring and supply chain finance are fast-growing sources of short-term financing for suppliers to micro, small and medium-sized enterprises, we also engage with consultants to work with selected banks and factoring companies to help them establish or improve their factoring operations.
Lastly, we understand the importance of meeting international standards in financial crime prevention, trade-based AML, Know Your Customer and Customer Due Diligence in trade finance. To enable our partner banks to meet these standards we organise seminars and workshops throughout the year, and offer a wide range of online training and activities.
We work with a large network of local banks in the EBRD regions and worldwide. If you are an importer or an exporter and are interested in learning how we can support your international trade business, please contact your local bank (see the lists of issuing banks and confirming banks below).
Key trade documents
Trade Finance e-Learning platform
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