To offer secure and innovative trade finance solutions to businesses involved in foreign trade on sales contract terms, Eastern Bank Limited (EBL) has signed a memorandum of understanding with Tradewind GmbH, a German trade finance provider.
Under this agreement, EBL will collaborate with Tradewind for export factoring, allowing Bangladeshi exporters to obtain their deferred receivables from overseas importers on a sight basis.
The process is faster, more secured, and will protect the interest of Bangladeshi exporters while supporting the readymade garment (RMG) sector's ambitions of becoming the global leader in textile manufacturing and sourcing.
On June 30 this year, the central bank issued a policy framework for factoring solutions aimed at easing the export process and keeping exporters free from risks of payment realisation.
Under the policy, payment undertakers or insurers will arrange export payments in case of default by importers, thus mitigating the risks faced by exporters under the existing process for letters of credit (LCs).
Ali Reza Iftekhar, managing director and CEO of EBL, and Peter Maerevoet, global chief financial officer (CFO) and regional CEO of Tradewind Asia, signed the documents through an online conference on July 1.
Among others, EBL Deputy Managing Director Ahmed Shaheen, EBL Head of International Business Md Obaidul Islam, and Tradewind Regional Commercial Leader for South Asia and Middle East Soheil Jali were also present at the conference.
Presently, EBL is providing trade finance solutions at home and abroad from its Hong Kong subsidiary EBL Finance (HK) Ltd. It also has representative offices in Myanmar and Guangzhou in China.
Tradewind GmbH is regulated by the German Federal Financial Supervisory Authority (BAFIN). It has over 20 offices across 13 countries in four continents.