OREANDA-NEWS. July 29, 2010. The European Bank for Reconstruction and Development (EBRD) increased the TFP Facility limit for LOCKO-Bank up to USD 70 million. The EBRD’s decision to increase the limit will further contribute to the Bank’s sucesseful performance in financing the foreign trade operations of its clients, reported the press-centre of LOCKO-Bank.

A TFP Issuing Bank Agreement with an initial limit of USD 10 million was signed between LOCKO-Bank and the EBRD in September 2005. Since then the facility was increased several times to support the constantly growing trade finance business of the Bank. As part of TFP Programme, a Revolving Credit Agreement in Russian Roubles was signed in May 2008 for refinancing of foreign trade loans in Russian Roubles.

The Bank enjoys all-round relations with the EBRD. In addition to the TFP programme, the EBRD has provided a USD 20 million subordinated loan, a RUB 340 million MSE Loan, and a RUB 500 million SME Loan.

Dmitry Kryukov, Chairman of the Executive Board, said, “Cooperation with the EBRD is crucial for LOCKO-Bank. It enables us to offer competitive products to our clients and especially ones from the SME sector. From our side we are fully committed to cementing the long-term relations with the EBRD and other international financial institutions and maintaining the required high corporate governance and business conduct standards. We believe that the recent increase in the TFP Line will help us to build up our trade finance portfolio further in support of our clients.”

“It is good to see that LOCKO-Bank has been so successful in growing its trade finance business. Even during the recent liquidity crisis, when many other banks reduced their lending to the real economy, LOCKO-Bank continued to provide importers and distributors in Russia with much needed trade finance facilities”, said Rudolf Putz, Head of the EBRD’s Trade Facilitation Programme.