The European Bank for Reconstruction and Development (EBRD) in partnership with Bank of Palestine are boosting Palestnian export and import activities with a US$ 5 million trade finance limit to Bank of Palestine, the largest bank in the West Bank and Gaza.
The trade finance limit to Bank of Palestine will be used to issue guarantees in favour of confirming banks for pre-export and post-import financing.
The coronavirus pandemic has seen strong demand for trade financing to keep the import and export of vital goods going. The EBRD played a vital role in upholding trade and the programme achieved a record annual volume of over €3.3 billion in 2020.
By joining the TFP, Bank of Palestine will gain access to a community of more than 100 issuing banks and 800 confirming banks worldwide, expanding its correspondent banking network and its international business opportunities. Joining the Programme will also create the opportunity to develop new products such as factoring which will support small and medium-sized enterprises and intra-regional trade and to trade in energy efficiency equipment and services.
The EBRD TFP was launched in 1999 with the aim of promoting international trade between the economies in the Bank’s regions, in the form of guarantees and short-term loans to selected participating banks and factoring companies.
Since the start of its operations in the West Bank and Gaza in 2017, the EBRD has signed 14 projects for a total amount of US$ 61 million.
Bank of Palestine started issuing Letters of Credit in 2000 through international banks such Deutsche Bank AG, Commerzbank AG, HSBC, and CITIBANK N.A.
In 2002 the bank launched the International Trade Division covering all branches in the West Bank and Gaza while dealing with all kinds of foreign trade operations. The bank issues all kinds of Import Letters of Credit including irrevocable, transferable, sight payments, acceptances, negotiations, deferred payments, confirmed, non-confirmed, standby. Bank of Palestine customers are now importing all kinds of goods from all over the world and receive Inward Bills and send Outward Bills for Collections to all countries. The volume in trade finance is equivalent to USD 70,000,000.