Afreximbank approves $3.5bn trade finance facility for African countries

17 Dec 2015
Chibuike Oguh

Summary

The financing programme – called the Counter-Cyclical Trade Liquidity Programme – allows Afreximbank to provide trade finance liquidity to African central banks and selected commercial banks.

Afreximbank President Benedict Oramah

African Export-Import Bank has approved a $3.5 billion financing programme to help member countries deal with current economic shocks, especially declining commodity prices and terrorism.

The financing programme – called the Counter-Cyclical Trade Liquidity Programme – allows Afreximbank to provide trade finance liquidity to African central banks and selected commercial banks.

The facility has an initial life of two years, according to a statement posted on the website of Afreximbank. Last month Cario-based Afreximbank said it had offered the Egyptian central bank $1 billion through the facility.

“This facility enables us to help our member countries bridge the significant trade financing gap confronting them as a result of current economic shocks until normal funding conditions are restored,” said Dr. Benedict Oramah, President of Afreximbank.

“It is Afreximbank’s response to the exceptional circumstances that demand urgent and decisive large-scale support to ensure that the continent is not thrown into recession due to a sudden drying up of trade flows. It also helps us to minimise the potential impact on normal bank operations.”


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