European Bank for Reconstruction and Development and Crédit Agricole du Maroc to boost trade
September 29, 2020
The European Bank for Reconstruction and Development (EBRD) is boosting trade in Morocco with a US$ 20 million trade finance limit to Crédit Agricole du Maroc, a leading local bank.
The uncommitted, multi-currency trade finance limit will be used to issue guarantees in favour of confirming banks and to provide cash financing for pre-export and post-import financing and for local distribution.
The coronavirus pandemic has seen strong demand for trade financing to keep the import and export of vital goods going. The EBRD has responded by increasing the total limit available under its Trade Facilitation Programme (TFP) to a record €3 billion for 2020 alone. Trade finance is a key part of the EBRD’s response to the coronavirus crisis.
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.
Morocco is a founding member of the EBRD and became a country of operations in 2012. To date, the EBRD has invested over €2.7 billion in Morocco through 69 projects.