Arab Trade Finance Program offers $57mn financial aid to Tunisia 

By Arya M Nair, Intern Reporter
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Tunisia
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The Arab Trade Finance Program (ATFP) has announced $57 million of direct financing for Tunisia to invest in commercial operations, boost the country’s economic position, and satisfy emergency needs.

The ATFP reaffirmed its commitment to providing financial support including discounting of accepted drafts (forfeiting), providing unfunded credit facilities, risk participation transactions with regional and international financial institutions as well as the issuance of payment guarantees and irrevocable reimbursement undertakings to National Agencies in its member nations, in light of the current changes caused by the COVID-19 pandemic, and the subsequent economic and financial consequences in several sectors.

The program closely monitors the Tunisian economy’s progress and the challenges it faces as a result of the current situation, working with the Central Bank of Tunisia to help the country effectively address the various concerns.

It is currently studying financing requests from National Agencies in other member countries and processing them through expedited procedures in order to provide support as quickly as possible, so that National Agencies in member countries can meet financing needs and bolster their financial positions to face various challenges, particularly in these times.

The Program which was established by the Arab Monetary Fund in 1989 aims to contribute to the development of Arab trade and to enhance the productive and competitive capabilities of the Arab producer and exporter by providing the necessary financing for Arab trade activities at affordable cost and conditions.

The program focuses on collaboration and coordination with local and regional financing and guarantee organizations in order to offer the necessary insurance coverage for commercial exchanges in Arab goods.

Related: UAE’s DP World to offer trade finance to support SMEs

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