Intesa Sanpaolo signs agreement with EIB to support Greek trade
Italy’s Intesa Sanpaolo has signed a €75m agreement with the European Investment Bank (EIB), joining as Confirming Bank in the Trade Finance Facility in Greece, established in June 2013.
Intesa Sanpaolo will join the other Confirming Banks (i.e. Citi, Commerzbank and HSBC) extending the geographic coverage of the Facility and supporting in particular the trade flows between Greece and Italy.
The agreement was signed by Luca Lazzaroli, EIB Deputy Secretary General and Stefano Stangoni, Intesa Sanpaolo’s head of Global Banking and Transaction.
The facility is geared to support foreign trade activities of Greek SMEs and Mid-Caps. Under this innovative instrument EIB is providing its guarantee on a portfolio of Letter of Credit (LCs), Letter of Guarantees (LGs) and other trade Finance instruments confirmed by international banks.
This will both alleviate cash collateral constraints otherwise imposed on
most SMEs and increase access to international trade instruments at a time when trade has a significant role to play in economic development, the bank said.
“Ultimately, the agreement would have a positive impact on the Greek SMEs and mid-caps, preventing viable enterprises from failing for lack of access to working capital and trade finance. By mitigating the risks involved in
trade financing, it should contribute to re-ignite trade flows with Greece, favouring an export-led recovery promoted in particular by SMEs and mid-caps,” Intesa Sanpaolo said in a statement.
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