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 to provide cash financing for pre-export, post-import financing and local distribution.
Under the facility the EBRD will issue guarantees in favour of international confirming banks, taking on the political and commercial payment risk of these international trade transactions in the economies where the EBRD operates.
By joining the TFP, the Housing Bank will gain access to a community of more than 100 issuing banks and 800 confirming banks worldwide, expanding its correspondent banking network and international business opportunities. The Housing Bank will also have the opportunity to develop new products such as factoring, which will support small and medium-sized enterprises (SMEs) and intra-regional trade.
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.
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