If you trade with Russia, Eastern Europe or the Commonwealth of Independent States, you can benefit from special guarantees offered through the Trade Facilitation Programme (TFP).
The programme, run by the European Bank for Reconstruction and Development (EBRD), promotes trade with this region by offering 'confirming banks' - which finance exports - security against the commercial and political risks of non-payment by local 'issuing banks' - who finance imports.
Read about trade facilitation on the EBRD website (link is external).
Credit guarantees
The EBRD guarantees payments under the terms of trade-related finance instruments issued by local banks, including:
documentary letters of credit
standby letters of credit
advance payment bonds and guarantees
contract guarantees, such as performance or bid bonds
trade-related promissory notes or bills of exchange
Simply put, the EBRD guarantees payments promised by local banks for your exports against political and commercial risks. This makes it easier for you to secure finance through the UK banks to trade with this region.
Note that the EBRD does not deal directly with importers and exporters, even though they are the final beneficiaries.
Goods and services covered
EBRD guarantees cover for financial transactions relating to consumer goods, commodities, equipment, machinery, power supply, and construction, technical and other services.
The bank requesting an EBRD guarantee pays the fees for this service. No fees are payable by the importers and exporters.
Using the TFP
There are over 90 issuing banks in 21 EBRD countries of operation. To help secure finance for a transaction in this region, contact an issuing bank in the country you're trading with to request support, or ask your buyer if their issuing bank can get an EBRD guarantee.
