Trade Finance

In line with its mission to initiate, to promote and to provide financial facilities to expand intra-regional trade and to promote the economic development of its member countries, ECO Bank extends short-term loans to selected banks in its countries of operations.

These loans are structured to fund trade-related advances to local companies exclusively for the purpose of pre-shipment finance, post-shipment finance necessary for the performance of foreign trade contracts. Credit agreement are signed between the ECO Bank and the selected banks.

All commercial banks based in ECO Bank member states with an established record of trade finance operations are eligible to apply to join this programme. All applications will be assessed by related departments of ECO Bank and application results will be informed to the applying bank or the financing institution.

Short Term Trade Finance Facility

Export Finance Facility is developed to provide advance financing to exporters necessary to produce manufactured goods, commodities and agricultural products for export and also developed to extend deferred payment terms for the buyers, if needed. Loans may cover both pre-shipment and/or the post-shipment (shipments date back upto 1 month) periods of an export transaction.

Exporters may utilize funds through ECO Bank intermediary banks under this facility within a period not exceeding one year. Shipment should take place within the tenor of relevant disbursement (if not stated as post shipment by the borrower financial institution). ECO Bank Export Finance Facility provides financing to transactions when exported goods are produced in the ECO Bank Member Countries.

Import Finance Facility is provided through ECO Bank intermediary banks to buyers/importers based in ECO Bank Member Countries to finance imports of commodities, capital goods and manufactured products originating from other ECO Region Countries (http://www.ecosecretariat.org). These Loans are provided to increase competitiveness of goods produced in ECO Region Countries and may improve the competitive position of manufacturing exporters in the region.

Import financing will be limited to imports only from 10 ECO Region Countries whereas export financing will be available for exports from an ECO Bank Member Country (Iran, Pakistan and Turkey) to anywhere in the world.

The facility shall only be used by exporters/importers which comply with ECO Bank rules on sector eligibility please also see Negative List of Products of the Bank.