Regional Trade Facilitation Programme (TFP)

Location:

Regional

Project number:

5850

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

12 Jan 1999

Status:

Approved

PSD disclosed:

11 Dec 1998

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Board review dates Framework:12 January 1999

First renewal to the Programme: 31 May 2000

Second renewal: 12 December 2000

Third renewal: 23 October 2001

Fourth renewal: 28 May 2002

Fifth renewal: 2 March 2004

Sixth renewal: 7 February 2006

Seventh renewal: 2 April 2007

Eighth renewal: 12 May 2008

Ninth renewal: 24 February 2009

Tenth renewal: 28 June 2011

Eleventh renewal: 29 May 2013

Twelfth renewal: 25 May 2016

Thirteenth renewal: 22 June 2021

Fourteenth renewal: 12 October 2021

 

Framework operation supporting financial institutions (or, in the case of factoring, including non-bank financial institutions) and structured in one of the following two ways:

1. Guarantees: issued by the Bank in the form of standby letters of credit ("LCs"), to banks and factors ("Confirming Banks/Factors") to cover the payment risk of banks and factors established in the Bank's countries of operation ("Issuing Banks/Factors") in connection with trade finance instruments ("Eligible Instruments") issued by such Issuing Banks/Factors in support of Eligible Trade Transactions in foreign or local currency; and

2. Cash Advances (i.e., revolving credits): in foreign or local currency to banks and factors ("Borrowers") to finance sub-loans made by such Borrowers to Exporters or Importers for the purposes of Eligible Trade Transactions. The programme aims to support foreign trade with and among EBRD's countries of operations and includes some donor assisted training for Issuing Banks/ Factors in trade finance skill development.

The Trade Facilitation Programme (TFP) framework facility was initially approved by the Board from January 1999 for a period of 2 years. Further approvals have prolonged the programme to align with the Financial Sector Strategy of the Bank.

Project Objectives

i. Facilitate integration of client banks into the global trade finance industry

ii. Provide support to narrow the gaps in access to trade finance for TFP client banks

iii. Building sustainable trade finance capabilities at client banks

iv. Drive lower carbon Trade Finance and other Bank level priorities

v. Promote digitalisation, innovation and product range expansion in Trade Finance

Transition Impact

ETI score: 60

The programme's transition impact arises from

i. Market expansion - assisting client banks to expand their trade finance operations

ii. Skills transfer - training is an important element of the programme, client banks gain access to large range of industry specific training courses

Client Information

TO BE DEFINED

Banks and factoring companies in EBRD's countries of operations active in trade finance. As of end 2020, over 100 banks and factoring companies from 30 countries of operations are accredited. Over 800 banks in 82 countries participate in the Programme as confirming banks. Details of the issuing and confirming banks are available on www.ebrd.com/tfp.

EBRD Finance Summary

EUR .00

i. EBRD issues guarantees in favour of international and regional banks and factoring companies to cover letters of credit, guarantees and other trade finance instruments issued by participating banks and factoring companies in central and eastern Europe, the CIS and SEMED, and

ii. short-term loans to participating banks and factoring companies to fund their trade finance subloans to local exporters, importers, sellers and distributors of imported goods. Foreign commercial banks, private credit risk insurers, export credit agencies and development banks will be invited to co-finance trade instruments with the EBRD.

Total Project Cost

The maximum amount outstanding at any moment in time would be €3.0 billion

Environmental and Social Summary

Client banks are required to follow the EBRD's environmental exclusion list and local environmental regulatory requirements.

Technical Cooperation and Grant Financing

TC support for this operation has been provided by the governments of Austria, Canada, Germany, EU, France, Ireland, Japan, Italy, Netherlands, Taipei China, Sweden, Switzerland and UK and donor risk sharing funds have been provided by the governments of Austria, Germany, Netherlands, Norway, Switzerland and Taipei China.

Company Contact Information

Rudolf Putz
putzr@ebrd.com
+442073387779
+442073386119
ebrd.com
One Exchange Square, London EC2A 2JN

PSD last updated

07 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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