The European Bank for Reconstruction and Development (EBRD) says it has signed two agreements with Banka OTP Albania worth a total of EUR 60 million (US$67.2 million) to support small- and medium-sized enterprises (SMEs).

One of the agreements falls under EBRD's letter of credit (L/C) oriented Trade Facilitation Programme (TFP), which has been running since 1999.

Two facilities

EBRD and Banka OTP signed a EUR 10 euro trade finance facility and a EUR 50 million risk-sharing framework to help Albania's fifth biggest bank support small firms.

The trade finance facility is part of the TFP and will support both large enterprises and SMEs active in international trade, including trade with other countries in the Western Balkans region and green trade in high performance technologies and services, according to an EBRD statement.

L/C support

Through its TFP, EBRD guarantees payment under trade finance instruments issued or guaranteed by local issuing banks to international confirming banks.

Trade finance instruments include L/Cs and other types of guarantees, bills of exchange or promissory notes, performance bonds and bid bonds.

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