TFP Factsheet PDF

Trade Facilitation Programme
April 2018
The EBRD’s Trade Facilitation Programme (TFP) was developed to promote At a glance
and facilitate international trade to, from and within central and Eastern
Europe, the Commonwealth of Independent States (CIS) and the southern Issuing banks
and eastern Mediterranean (SEMED) region. Under the TFP, guarantees are
provided to international commercial banks (confirming banks) thereby
100+
covering the political and commercial payment risk of transactions
undertaken by issuing banks in the EBRD’s countries of operations. In Number of operating countries
2017 Lebanon has become the 68th shareholders of the bank and the
EBRD Board of Governors has approved the engagement of the EBRD in
26
the West Bank and Gaza. In addition, TFP will extend limits to banks in Number of transaction
Uzbekistan.
20,000 +
Transaction Business
instruments development Total transaction value since 1999
The TFP can be used to guarantee any The TFP is an outstanding business
€15 billion
genuine trade transaction to, from and development tool, providing a range of
within the countries of operations. The
Confirming banks
facilities to participant banks. It offers:
following instruments issued or
guaranteed by participating banks may
cover for a broad range of trade
finance instruments
800+
be secured by guarantees issued
under the Programme: unconditional guarantees payable
documentary letters of credit (LCs); on first written demand
trade-related standby LCs from guarantees for up to 100 per cent
issuing banks; deferred payment of the face value of the underlying Contacts
LCs; and LCs with post-financing trade finance instruments
advance payment bonds and European Bank for Reconstruction and
payment guarantees uncommitted trade finance lines
Development
and transaction approval on a One Exchange Square
bid and performance bonds and case-by-case basis London EC2A 2JN
other contract guarantees United Kingdom
attractive fee levels agreed Tel: +44 20 7338 6000
trade-related promissory notes or separately for each transaction Fax: +44 20 7338 7848
bills of exchange. www.ebrd.com/tfp
a fast and simple approval
Goods and services procedure to issue guarantees Contact the team
Email: group-tfpops@ebrd.com
short-term loans to selected local
covered banks for on-lending to local
Tel: +44 20 7338 6991
EBRD guarantees cover a wide range exporters and importers.

of goods and services including
consumer goods, commodities, At present there are 100+ issuing
textiles, equipment, machinery and banks in 26 countries participating in
power supply as well as construction the TFP, working with over 800+
and shipbuilding contracts, cross- confirming banks and their
border engineering projects and other subsidiaries throughout the world.
services. Some environmentally Issuing banks in the region participate
sensitive activities may be considered in the TFP with total limits in excess of
subject to satisfactory completion of €1.5 billion.
environmental review procedures and
approvals.
Participating banks The selection of banks is subject to the
EBRD’s approval and the signing of
Credit agreements are signed
between the EBRD and the selected
Issuing banks appropriate legal documentation. banks and factoring companies and
There are no costs or charges to join the selection criteria are similar to
The TFP is open to issuing banks the TFP. those used for issuing banks for the
registered in all the EBRD’s countries issuance of guarantees.
of operations, including banks with Legal
majority foreign ownership and Applying for a
subsidiaries of foreign banks. documentation
Applications from banks interested in guarantee
participating in the Programme are The issuance of EBRD guarantees is
reviewed by the EBRD on a case-by- governed by standardised trade An EBRD guarantee may be
case basis after detailed due diligence. finance agreements, concluded by the requested either by the issuing bank
The main criteria for selection are: issuing banks and the EBRD. Cash or the confirming bank. The TFP can
advances are governed by standard discuss details of the transaction,
an appropriate level of financial percentage of cover, tenor and
revolving credit facility agreements
standing pricing before a formal guarantee
between client banks and the EBRD.
good corporate governance request is submitted.
Revolving credit
clear shareholder structure
Important donors
willingness to establish or already facility
established international trade The governments of Austria,
In addition to providing trade finance Germany, Italy, the Netherlands,
finance business
guarantees, the EBRD also extends Norway, Switzerland and Taipei China
Confirming banks short-term loans to selected banks and support the TFP financially through
factoring companies in its countries of risk-sharing funds. These funds
All international commercial banks that operations to fund trade-related support the Programme’s activities in
have an established record of trade advances to local companies for pre- south-eastern Europe, Armenia,
finance operations with banks in the shipment finance, post-shipment Azerbaijan, Belarus, Georgia,
EBRD region are eligible to join the TFP finance and other financing necessary Moldova, Kazakhstan, the Kyrgyz
as confirming banks. Selected banks in for the performance of foreign trade Republic, Russia, Tajikistan, Turkey,
the EBRD region with experience in contracts and domestic and Turkmenistan and Ukraine and
trade finance instruments can also act international factoring operations. enable the EBRD to provide longer
as confirming banks. tenors and to take higher exposures
in trade transactions.
Floating dock from Ukraine to Cyprus

A letter of credit, issued by Bank of Cyprus and confirmed by ING Belgium,
facilitates the construction and delivery of a floating dock from Ukraine to
Cyprus, helping Ukrainian exporters generate additional export revenues
and a Cypriot shipyard increase its production capacity. A standby letter of
credit, issued under the EBRD’s Trade Facilitation Programme (TFP),
covers 70% of the payment risk of Bank of Cyprus to ING Belgium.
Kherson State Plant Pallada in Ukraine will build the floating dock under
the order of Cypriot Multimarine Shipyards and supply it to the customer in
2017. The dock’s length is 120 meters and its immersion depth is 12.2
meters. Combination of two materials is its main feature: shipbuilding
concrete is used for the hull and shipbuilding steel is used for the towers.
This solution reduces operating costs by 2-2.5 times compared to similar
steel docks.
The new dock, which will be built under the supervision of the American
Bureau of Shipping, will be operated by Multimarine Shipyards in the port
of Limassol in Cyprus and will be able to dock ships and floating
structures used in the development of the Mediterranean Sea shelf with a
docking weight of up to 7,100 tonnes and a docking draft of up to 6.3
meters.

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Trade Facilitation Programme

EBRD guarantees cover a wide range exporters and importers.

Floating dock from Ukraine to Cyprus

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