30 December2:57 PM

AfDB grants $10 M Transaction Guarantees to BFA

BFA reinforces the capacity to finance commercial transactions

The African Development Bank (ADB) acknowledges a credit guarantee of 10 million American dollars in total to cover the risk of Trade Finance transactions, exclusively documentary credit operations.

This guarantee covers up to 100% the risk of non-payment to correspondent banks for Trade Finance operations of customers that are submitted to the bank.

Designated as Transaction Guarantee (TG), this ADB guarantee facility concession reinforces BFA capacity to finance commercial transactions for eligible Angolan companies, providing them essential risk coverage to support its import and export activity.

Small and medium-sized companies (SME’s), local companies owned and managed by women, as well as companies that need to import or export agricultural products and raw materials are eligible.

In partnership with the commercial banks of our continent, AfDB intends to promote the increase of intra-trade within Africa, through creation of financial instruments to support and mitigate the risk of the issuing banks for the Trade Finance business.