Members of the Mediterranean Bank Network could find it easier to provide customers with credit facilities, including letters of credit (L/Cs), as a result of a new agreement.

The Risk Participation Agreement (RPA) is one more facility arranged by the banking association for Mediterranean banks that enables member banks in the southern European Union (EU) and their non-EU neighbours to participate in new or enhanced services to promote trade in the region.

Comprehensive services

Under the RPA, banks, member banks should be able to offer more comprehensive services in terms of L/Cs, guarantees, working capital finance as well as other types of import and export finance.

The signing of the agreement took place in Malta at the head office of its Maltese member bank, Bank of Valletta.

Bank network

The Mediterranean Bank Network was established in 1996. To date, the total number of countries in which its member banks are present as subsidiary banks, affiliates or representative offices exceeds 55 countries.

Founding members included banks based in Malta, Slovenia, Tunisia, Israel, Spain, Jordan, Italy, Cyprus and Egypt.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.