Deutsche Bank signed a memorandum of understanding (MOU) with Eastern and Southern African Trade and Development Bank (PTA Bank) to offer GSM-102, a programme guaranteeing credit to encourage financing of commercial exports of US agricultural products, while providing competitive credit terms to buyers.

 

Credit guarantees are intended to promote exports to buyers located in developing countries who have the financial strength and foreign exchange capabilities to make scheduled payments.  US department of agriculture’s foreign agricultural service will administer the programme on behalf of the Commodity Credit Corporation, which issues the credit guarantees.

 

PTA Bank will issue irrevocable US dollar denominated letters of credit for the import of eligible agricultural products from the US and Deutsche Bank will advise, confirm and negotiate these letters of credit as well as provide post-shipment financing in accordance with the GSM-102 programme regulations. 

 

Deutsche Bank also provides other trade finance services, including letters of credit confirmations and letters of credit post-financings outside of the GSM-102 programme.

 

PTA Bank’s mandate is to finance and foster trade, socio-economic development and regional economic integration across its member states throughout Eastern and Southern Africa. It offers a broad range of products and services, across both the private and public sectors, including debt, equity and quasi-equity as well as guarantees. The bank’s investments cut across agriculture, trade, industry, infrastructure, energy and tourism, among others and are made on a commercial basis and sustainability principles.

 

“Participation in this programme is important for PTA Bank and will give our importers access to agricultural products from the US,” said Tadesse Admassu, president of PTA Bank. “Deutsche Bank is one of the most recognized and knowledgeable providers of this programme and cooperating closely with Deutsche Bank will allow PTA Bank to further advance its mission of fostering economic and trade development in the region.”