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EBRD signs trade facilitation agreement with Croatian Medimurska Banka
The European Bank for Reconstruction and Development (EBRD) signed a trade facilitation agreement today with Medimurska Banka in Croatia. This agreement will help the bank to expand its trade finance activity and will strengthen the Croatian economy. The total value of the agreement is DM 2 million (EUR 1.03 million). Under the agreement, the EBRD will extend guarantees to cover advance payment bonds and other instruments as well as letters of credit, while the amount of the guarantee will extend to up to 100 per cent of the face value of the underlying finance.
"In the aftermath of the Kosovo crisis, it is essential to support Croatia’s international and intra-regional trade," said Andrew Krapotkin, Head of the EBRD’s Zagreb Office. "The EBRD has a mandate to support trade in the region and we want to give a signal that the Bank is ready to help whenever possible." He added that the EBRD aims to include additional Croatian banks in the Programme.
This trade facilitation agreement is part of a new extended EBRD Trade Facilitation Programme (TFP), which was launched to encourage international and intra-regional trade in central and eastern Europe and the Commonwealth of Independent States (CIS). Through the TFP, the EBRD issues guarantees for local intermediaries, increasing their ability to support import and export transactions. The programme covers all 26 of the Bank’s countries of operations.
"The Trade Facilitation Programme will provide Medimurska Banka with improved access to the international markets," said Masan Sredanovic, Chairman of Medimurska Banka. "This is a strong signal of the EBRD’s continuing support for the Croatian economy and for the Croatian banking system."
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