The European Bank for Reconstruction and Development (EBRD) is accelerating its support for the digital transition of trade finance and has facilitated three test letters of credit (L/Cs) on the Contour digital trade finance network.

The bank is also working with the International Chamber of Commerce (ICC) to develop the legal frameworks required for digital trade and trade finance.

Digital L/C trial

The digital L/C trial took place with one of Egypt's largest commercial banks, QNB Alahli, acting as issuing bank and the CargoX Platform for electronic presentation of documents.

The trial included a test of Contour's integration with the CargoX Platform for blockchain document transfer.

A Slovenian company, CargoX was selected by the Egyptian customs authorities as the official digital courier service provider for the advanced cargo information declarations that are processed by NAFEZA, the Egyptian National Single Window for Foreign Trade, which was launched in April 2021.

Prioritising digitalisation

The EBRD has designated digitalisation as one of three main priorities under its current five-year strategic and capital framework. As part of this approach, the EBRD is partnering with digital solution providers and banks to support digitalisation in trade finance in and beyond the economies where it operates.

In addition, the EBRD is working with the ICC through its Banking Commission and the International Trade and Forfaiting Association to advance the adoption of legal frameworks to enable digital trade and trade finance.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.