EBRD and Quds Bank sign revolving credit agreement under TFP

The European Bank for Reconstruction and Development (EBRD) is expanding its partnership with Quds Bank through a revolving credit agreement under its Trade Facilitation Programme (TFP). The new arrangement will allow Quds Bank to utilise the existing trade finance framework to issue revolving trade loans which can be lent on to sub-borrowers.

The new facility is part of the existing US$15m (circa €13.2m) TFP guarantee line, enabling Quds Bank to provide short-term loans to local importers and exporters based in the West Bank. This enhanced flexibility will enable Quds Bank to better meet the financing needs of local businesses by supporting pre-shipment and post-shipment finance, as well as providing other working capital finance necessary for foreign trade, thereby helping Palestinian businesses to integrate into regional trade and strengthening their resilience.

Quds Bank has been an EBRD client since 2019 and is one of the most active banks in the region when it comes to utilising the EBRD’s trade finance lines.

Francis Malige, the EBRD’s Managing Director for Financial Institutions, said: “We are proud of our strong partnership with Quds Bank. This revolving credit agreement will give Quds Bank greater capacity to provide short-term trade financing solutions, helping Palestinian businesses to navigate the challenges of international trade and contribute to economic development.”

Dureid Jerab, Deputy Chairman of Quds Bank, said: “We are pleased to see our partnership with the EBRD deepen further. This agreement will enable us to offer even more flexible and competitive financing solutions to our clients, support the growth of Palestinian businesses and enhance their participation in regional trade.”

Since joining the TFP programme in 2019, Quds Bank has gained access to a community of more than 100 issuing banks and 800 confirming banks worldwide, expanding its correspondent banking network and its international business opportunities. Quds Bank employees have also benefited from workshops and training sessions providing knowledge and best practices regarding prudent approaches to trade finance.

The EBRD’s TFP programme was launched in 1999 to promote international trade between the economies where the Bank invests. Under the programme, the EBRD provides guarantees to selected participating banks and factoring companies, as well as short-term loans for on-lending to local exporters, importers and distributors.

Since the start of its operations in the West Bank and Gaza in 2017, the EBRD has invested a total of €163.2m across 32 investment projects.