Can the EBRD guarantee payment directly to an exporter?
No. Through the programme, the EBRD provides guarantees to international confirming banks and factoring companies, taking the political and commercial payment risk of international trade transactions undertaken by the issuing banks in our countries of operations
In certain cases we can advise which banks are active under the programme, so that the exporter and importer can arrange a payment structure suitable for both parties.
Are there limits on the types of goods that can be covered?
Certain restrictions may apply related to the type of goods, or where environmental or social due diligence guidelines apply. This should be checked with us on a case-by-case basis.
Who applies for an EBRD guarantee under the programme?
Either the issuing bank or the confirming bank may apply for cover. If the confirming bank applies, the consent of the issuing bank is required before a transaction can be covered, as the issuing banks are responsible for managing their exposure under the programme.
Can the TFP be used to cover part of a transaction that is also covered by the confirming bank?
Yes. The EBRD guarantee can be issued to cover a Letter of Credit or guarantee that forms part of a larger contract or framework agreement, or to partially cover a Letter of Credit or guarantee, sharing the risk with the confirming bank.
Which countries are covered by the Programme, and why are some 'missing'?
The programme can be used to cover instruments issued by banks in any of the countries of operation of the EBRD, which have signed the issuing bank agreement, and which have an active TFP line in operation at the time of application.
Can the Programme be used to cover instruments with an automatic renewal facility?
No. The Programme is designed to cover instruments with fixed tenor only.