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Trade Finance

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

These loans are structured to fund the trade-related advances from local banks to local companies exclusively for pre-shipment and post-shipment finance foreign trade contracts. Credit agreements are signed between ETDB and selected banks (ie: intermediary banks).

All commercial banks based in ETDB member states with an established record of trade finance operations are eligible to apply for being an intermediary bank.

Short Term Trade Finance Facility

Export Finance Facility is developed to provide financing to exporters of ETDB member countries. Loans may cover both pre-shipment and/or post-shipment periods of an export transaction.

Exporters may utilize funds through ETDB intermediary banks. ETDB Export Finance Facility provides financing to transactions up to 100 % of the invoice amount when exported goods are produced in the ETDB Member Countries.

Import Finance Facility is provided to buyers/importers based in ETDB Member Countries through ETDB's intermediary banks to finance imports of commodities, capital goods and manufactured products.
If the imported goods are originating from other ECO Region Countries (http://www.ecosecretariat.org), imported goods can be of any nature except the Negative List of Products and up to 100% of the invoice amount can be financed. If the imported goods are originating from non-ECO region countries, then the goods should be capital equipment (machinery and relevant spare parts), raw material (mainly energy related items such as oil, gas, coal, etc) and intermediary goods except the Negative List of Products and up to 85% of the invoice amount can be financed.

Export and Import Finance Facilities are provided to increase competitiveness of goods produced in ECO Region Countries; to enhance economic development and job creation and to improve intro-regional trade for the ECO region.

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

How to Apply

All commercial banks located in ETDB Member Countries can apply to be an intermediary bank of ETDB for the Short Term Trade Finance Facility.

Upon finalization of credit review, establishment of a credit limit and signing of the Short Term Trade Finance Facility agreement; financing will be considered for the intermediary bank.

Exporters/Importers are requested to apply directly to one of the intermediary banks. Requirements for application may vary according to the respective intermediary institution.

Conditions of financing (interest rate, tenor, grace period, loan period etc) to be applied to end-beneficiaries will be determined by the respective ETDB intermediary bank.