The European Bank for Reconstruction and Development (EBRD) has doubled its trade finance limit to the Bank of Cyprus to benefit businesses, including small and medium size enterprises to €100 million from €50 million.
In a press release, the EBRD says that “the doubling of the limit from €50 million to €100 million comes under the EBRD Trade Facilitation Programme (TFP) in response to the coronavirus pandemic.”
“The increase in trade finance will help mitigate the disruptions that severe market conditions have caused in trade and supply chains,” it notes.
It will accommodate, it continues, “the growing demand from Bank of Cyprus’s customers for trade finance instruments by providing guarantees for import, export and local distribution of imported goods.”
Referring to the Bank of Cyprus it says that it is one of the EBRD’s most active TFP partner banks in Cyprus with 319 transactions worth over €200 million to date.
“I am very glad we are stepping up our support for trade in Cyprus by increasing our TFP limit to Bank of Cyprus, one of our long-standing partners,” Andreea Moraru, EBRD Director, Regional Head of Greece and Cyprus, said.
“This is a crucial step to help local importers and exporters respond to the impact of the pandemic. Trade finance is a vital part of the EBRD’s coronavirus response,” Moraru added.
On his part, Lakis Pantelides, Manager, Trade Services Department, Bank of Cyprus, thanked the EBRD “for the assistance and support provided over the years and especially for this increase in our trade limits during these difficult times caused by the pandemic.”
The TFP promotes international trade to, from and within the economies in which the Bank invests, including Cyprus. Since its inception, the TFP has supported 648 import-export transactions for a total of €327 million in Cyprus.
The EBRD started investing in Cyprus on a temporary basis in 2015 to support the country’s economic recovery. To date, the Bank has invested over €460 million there, all in the private sector, the press release concludes.