The Eastern and Southern African Trade and Development Bank (PTA Bank) has signed a US$15m (about K75 billion) trade finance facility with the Dutch Development Finance Company (FMO).
The agreement was signed in Nairobi by PTA Bank president Dr. Michael Gondwe and FMO senior credit analyst Guido Boysen.
The bank would use funding borrowed under the facility to provide short-term financing to its clients.
According to Dr. Gondwe, the funding would be used to arrange import facilities, letter of credit facilities, pre-export and post-shipment finance facilities and lending to small- and medium-sized banks to support trade finance business.
"This facility will be available to the bank's clients in Zambia and also in other member states. It is expected that in line with the bank's mandate, the funding will bridge the financing gap in member states, which will have the desired effect of boosting economic growth," he said.
