The European Bank for Reconstruction and Development (EBRD) has issued a $5.4 million trade facility to Turkish Bank Ltd. to help support importers and exporters as part of its Trade Facilitation Program (TFP).
Turkish Bank is the fourth issuing bank participating in the program in Cyprus.
The TFP allows EBRD to issue guarantees to international commerce banks to help reduce political and commercial risks, according to an ERBD press release.
“This is a very important step to widen and deepen our engagement in Cyprus," Lucyna Stanczak-Wuczynska, EBRD director of financial institutions, said in the release. "The TFP facility will enable Turkish Bank Ltd. to provide better trade finance services to exporters, distributors of imported goods and importers among the Turkish Cypriot community. Through the TFP line, Turkish Bank Ltd. will have the opportunity to boost intra-regional trade and will contribute to the development of trade links between Cyprus and other countries where the EBRD invests. Promoting trade is an important way of strengthening the local economy by creating opportunities for growth and job creation."
Hakan Bortecene, chairman of Turkish Bank, said the program will help boost economic growth.
“It has been a pleasure and an honor to cooperate with the EBRD," Bortecene said. "The Trade Facilitation Program is an excellent tool that will help increase our foreign trade and economic growth. We are proud of the confidence shown in us and we look forward to deepening our relation with the EBRD to benefit from our partner’s extensive know-how and experience."
So far, 96 partner banks in 26 countries are participating in the TFP.