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.
Francis Malige, the EBRD Managing Director for Financial institutions, said: “We are very glad to partner with the Housing Bank to promote trade in Jordan. Supporting local importers and exporters’ activities is an important step in boosting the country’s economy in response to the pandemic.”
The Housing Bank’s CEO, Ammar Safadi, commented: “Due to its positive role in stimulating economic growth, the Housing Bank continues to expand its network and is pleased to announce its partnership with the EBRD, being among the first Jordanian banks to launch a financing programme to support the trading business of large corporates and SMEs. Under the TFP, the Housing Bank will be able to offer its clients excellent terms and competitive pricing to facilitate their trading activities.”
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.
The Housing Bank for Trade and Finance was established in 1973 and is the second largest bank in Jordan by total assets. It specialises in providing housing financing, having been a major driver in Jordan’s urbanisation and construction sector.