Hellenic Bank will become the third issuing bank under the programme in Cyprus.

According to a statement made by EBRD on Tuesday, through this facility, the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by Hellenic Bank. In addition, Hellenic Bank will also benefit from the EBRD’s award-winning technical cooperation projects in trade finance.

“We are very happy to welcome Hellenic Bank, the leading commercial banking group in Cyprus, to our pioneering Trade Facilitation Programme. This agreement will allow Hellenic Bank to expand its corresponding bank network and stimulate working relationships with countries where the EBRD invests. We look forward to working together to support Cyprus’s exporters and importers,” said Libor Krkoška, EBRD’s Head of Office in Cyprus.

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 almost 100 partner banks in 26 countries where the Bank invests, with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide.

To date, the EBRD has invested over €200 million including trade finance lines since the beginning of its operations in Cyprus in December 2014.

“We are very excited to participate in the EBRD Trade Facilitation Programme. Through our participation, Hellenic Bank will be in a much stronger position to further assist its clients, by providing a wider range of trade finance products in all major countries, including risk cover for bid and performance bonds related to construction and engineering services to the Middle East and other Mediterranean countries. This is just one of the many ways Hellenic Bank contributes towards the build-up and growth of the Cyprus’s economy,” said Bert Pijls, CEO of Hellenic Bank.

Hellenic Bank is one of Cyprus’ largest banks with an established nationwide branch network employing more than 1,550 staff.

Last year, the EBRD acquired a 5.4% stake in Hellenic Bank for €20 million.

Source: InCyprus