●EBRD provides a US$ 50 million trade finance limit to the Housing Bank for Trade and Finance
●Fostering exports and imports in Jordan
●Expanding the correspondent banking network of the Housing Bank for Trade and Finance
The European Bank for Reconstruction and Development (EBRD) is fostering export and import activities in Jordan by providing a US$ 50 million trade facility to the Housing Bank for Trade and Finance under the EBRD's Trade Facilitation Programme (TFP).
The TFP facility will enable the Housing Bank for Trade and Finance to provide cash financing for pre-export, post-import financing and local distribution.
Under this Facility the EBRD will issue guarantees in favor of international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by these banks in the countries where the EBRD works.
By joining the TFP, the Housing Bank for Trade and Finance will gain access to a community of more than 100 issuing banks and 800 confirming banks worldwide, expanding its correspondent banking network and its international business opportunities. Joining the Programme will also create the opportunity to develop new products such as factoring which will support small and medium-sized enterprises and intra-regional trade.
Francis Malige, the EBRD Managing Director for Financial institutions, said: "We are very glad to partner with the Housing Bank to promote trade in Jordan. Supporting local importers and exporters' activities is an important step in boosting the country's economy in response to the pandemic."
Housing Bank's CEO Ammar Safadi said, "Due to its positive role in stimulating economic growth, the Housing Bank continues to expand its network and is pleased to announce its partnership with EBRD, being amongst the first Jordanian Banks to launch a financing program to support the trading business of large corporates and SMEs. Under this program, Housing Bank will offer its clients excellent terms and competitive pricing to facilitate their trading activities."
The EBRD TFP was launched in 1999 with the aim of promoting international trade between the economies in the Bank's regions, in the form of guarantees and short-term loans to selected participating banks and factoring companies.
The Housing Bank for Trade and Finance was established in 1973, is the second-largest bank in Jordan by total assets, and is listed on the Amman Stock Exchange.
Since it started investing in Jordan in 2012, the EBRD has provided more than €1.5 billion in financing for 62 projects in the country.