ECOBANK Nigeria has utilised a $15 million credit line under the United States Department of Agriculture Export Credit Guarantee Programme. According to a statement by the bank, the ‘GSM 102 Programme’ provides a credit guarantee to encourage commercial financing of the US agricultural commodity exports.
Ecobank said the credit line had assisted American exporters to make increased sales in agricultural products. The credit line programme, according to the pan-African bank, is reserved exclusively for the exporting of agricultural products from the US. It noted that it had led to increased trade in agricultural products between the US exporters and Nigerian importers.
It provides an avenue for competitively-priced financing for longer tenors to both exporters and importers. The credit line programme, Ecobank said, had provided exporters a guaranteed payment, enabling them to agree on credit terms with importers. Foluke Aboderin, executive director, corporate banking, Ecobank Nigeria, was quoted as saying that the bank had used the facility for structured trade finance transactions with Cargill Financial Services International, one of the subsidiaries of a leading international commodities trading house.
— Jun 8, 2015 @ 01:00 GMT