Arab Trade Financing extends $88 million credit lines since June
The Arab Trade Financing Program (ATFP) has extended $88 million worth of trade facilities in the period between June 1 and August 30, 2001, disclosed Chairman of the Board Jassim Al-Manai who reviewed the fund’s performance in the board’s 47th meeting Wednesday, September 19, reported Assafir.
During the corresponding period the previous year, the ATFP signed $175 million worth of credit lines to member states. The program received credit line applications totaling $135 million to finance various commercial exchanges between June and August-end, 2001. Credit applications between June 1 and August 31, 2000, totaled $193 million.
Program officials disclosed that from its inception in 1991, the Abu-Dhabi-based ATFP had approved lines of credit totaling $2.062 billion to member states. The total value of applications received between 1991 and 2001 stands at $5.782 billion.
In mid-May the Program extended Morocco a credit line worth $25 million to finance the kingdom’s trade deals, reported Morocco’s official news agency, MAP. The Kingdom’s 27th loan of its kind brought to $335 million the amount granted by the program to Moroccan financial institutions.
ATFP aims at promoting trade among Arab countries and enhancing the competitive ability of Arab products, by providing attractive refinancing packages in the form of lines of credit to the region’s exporters and importers.
The ATFP’s lines of credit provide up to five years financing to Arab buyers of goods of Arab origin and associated services. Financing is provided in US$ for up to 85 percent of the value of the goods exported.
Mandated by the Arab league’s Arab Economic and Social Council, the ATFP is a specialized financial institution, established with a capital of $500 million. ATFP commenced its activities in 1989 with 34 institutions contributing to its capital.
The Arab Monetary Fund and the Arab Fund for Economic & Social Development hold stakes of 50 percent and 20 percent respectively. The remainder of the capital is held by a number of Central Banks, Arab commercial Banks, investment & guarantee institutions and other specialized financial institutions. — (Mena Report)
© 2001 Mena Report (www.menareport.com)