EBRD Increased TFP Facility Limit for LOCKO-Bank
OREANDA-NEWS. On October 23, 2008 the European Bank of Reconstruction and Development (EBRD) increased TFP facility limit in favor of LOCKO-Bank by another USD10 million up to USD57.5 million, reported the press-centre of LOCKO-Bank.
The EBRD’s decision to increase the limit for LOCKO-Bank will further strengthen the Bank’s capability to execute trade finance deals of its clients involved in international trade, and is also a positive signal to the Bank’s partners and investors in the current distressed market.
The TFP Issuing Bank Agreement was signed between LOCKO-Bank and EBRD and a limit of USD10 million established in September 2005. Since then the facility was increased several times to support the constantly growing trade finance business of the Bank. The latest increase of the Bank’s TFP limit took place in June 2008.
As part of TFP Program, the Revolving Credit Agreement in Russian Roubles for clients financing was signed in May 2008 at the EBRD Annual Meeting. It allows LOCKO-Bank to refinance Rouble loans granted to clients for foreign-trade operations.
LOCKO-Bank is currently working with EBRD on new projects, which will further enhance good business relations between the instituions built over the last three years. Among the Bank’s existing loans are 4-year SME loan for USD10 million granted in 2005, 5-year MSE loan for RUR340 million and 7-year subordinated loan for USD20 million granted in 2007.
According to Mr. Mikhail Pavlov, Deputy Chairman of the Executive Board, “LOCKO-Bank’s Management truly values EBRD’s decision to support the Bank in the conditions of the current market turmoil. Besides, the continuous support and confidence expressed by our strategic partner is particularly important today. EBRD’s decision also reflects on the successful realization of the Bank’s strategy and a high level of risk management.”