This makes BoC the second issuing bank in the country under the programme.

The facility means the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by BoC.

“As a participant in the EBRD’s Trade Facilitation Programme we aim to enlarge our support for Cypriot small and medium-sized enterprises as well as exporters and importers through the extended correspondent bank network that the programme offers for transactions in the Middle East and other countries where the EBRD invests,” said BoC CEO John Hourican.

The facility will be particularly useful for financing exports of construction and engineering services to the Middle East and other Mediterranean countries, including risk cover for bid and performance bonds and funding of short-term pre-export finance loans.

“This is a very important step to widen and deepen our engagement in Cyprus. The EBRD will boost intra-regional trade and will contribute to the development of trade links between Cyprus and other countries where we invest. Extending trade is an important way of strengthening the local economy by creating opportunities for growth and job creation,” said Lucyna Stanczak-Wuczynska, the EBRD’s director of financial institutions.

The EBRD has invested over €150 million in Cyprus since December 2014, including trade finance lines.

Source: InCyprus