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Italy : INTESA SANPAOLO inks 75m deal with EIB

June 24, 2014

A 75m deal has been inked by Italy'sIntesa Sanpaolo with the European Investment Bank (EIB), joining as Confirming Bank in the Trade Finance Facility in Greece, established in June 2013.

Intesa Sanpaolo would link with the other Confirming Banks (i.e. Citi, Commerzbank and HSBC) extending the geographic coverage of the Facility and supporting in particular the trade flows between Greece and Italy.

Luca Lazzaroli, EIB Deputy Secretary General and Stefano Stangoni, Intesa Sanpaolo's head of Global Banking and Transaction has inked the deal.

The facility is geared for backing up foreign trade activities of Greek SMEs and Mid-Caps. Under this innovative instrument EIB is offering its guarantee on a portfolio of Letter of Credit (LCs), Letter of Guarantees (LGs) and other trade Finance instruments confirmed by international banks.

This will both help cash collateral constraints otherwise imposed on most SMEs and increase access to international trade instruments at a time when trade has a significant role to play in economic development.

As per Intesa Sanpaolo, "Ultimately, the agreement would have a positive impact on the Greek SMEs and mid-caps, preventing viable enterprises from failing for lack of access to working capital and trade finance. By mitigating the risks involved in trade financing, it should contribute to re-ignite trade flows with Greece, favouring an export-led recovery promoted in particular by SMEs and mid-caps .

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Source: TendersInfo (India)