The European Bank for Reconstruction and Development (EBRD) has granted Tunisian bank Union Internationale de Banques (UIB) a $10 million trade finance line under its Trade Facilitation Programme (TFP) to expand international and intra-regional trade in the country.
UIB, a subsidiary of Société Générale, will use the loan to issue guarantees to conforming banks; provide cash financing for pre-export and post-import financing and for local distribution.
“This second deal expands our partnership with the EBRD and is in line with our ambitious growth strategy for the corporate and SME market for 2017-20. It will allow us to raise to a new level our recognised expertise in trade finance and our support for companies expanding their international trade. It will benefit our current and future clients, as well as the Tunisian economy,” said Kamel Neji, UIB General Director.
The EBRD launched the Trade Finance Programme in 1999 to promote foreign trade to, from and among the 26 countries it invests in, providing guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors.
The TFP currently includes 96 partner banks with limits exceeding €1.5 billion in total and over 800 confirming banks across the world.
EBRD started operations in Tunisia in 2012 and has invested €364 million in 225 projects in the country. It complemented its Tunis office to support the regional development of the country with a second office in Sfax in October 2016.