Etihad Credit Insurance and Emirates NBD sign deal to guarantee loans to exporters
The new partnership will support the UAE government’s ‘Make it in the Emirates’ initiative
Etihad Credit Insurance (ECI), the federal export credit agency of the UAE, signed an agreement with Emirates NBD to improve access to trade finance to exporters.
As part of the deal, Emirates NBD will provide loans to UAE businesses backed by ECI’s credit insurance, according to a statement from the export credit agency on Sunday.
The credit guarantees provided by a federal agency such as ECI helps the bank to "reduce any risks that may be associated with credit facilities, while supporting UAE businesses’ cashflow and capabilities to seek or continue their global operations,” ECI said.
The new partnership between the ECI and Emirates NBD is also expected to support the UAE government’s Make it in the Emirates initiative as “it will boost the confidence of the financial sector to fund UAE companies towards their manufacturing, export and expansion goals”, it added.
Established in 2018, ECI provides export guarantees and trade insurance to UAE companies to minimise payment risks associated with exporting.
The entity already has partnerships with a number of local and international banks that offer loans to UAE companies to fund exports to overseas buyers, with ECI providing insurance.
“We are delighted to offer the solutions we have developed for supporting banks’ factoring and supply financing activities, which can be leveraged effectively by the lenders, to offer innovative financial solutions to their clients, whether large companies or SMEs, thereby benefiting the local economy and supporting its continued development,” Massimo Falcioni, chief executive of the ECI, said.
Emirates NBD’s partnership with the ECI "builds on our long-term commitment to deliver robust financing facilities and support to UAE businesses to boost their trade competitiveness and overall confidence", Ahmed Al Qassim, senior executive vice president and group head of corporate and institutional banking at Emirates NBD, said.
ECI is also partnering with the UAE International Investors Council to support investments made by the country's businesses overseas.
Published: April 18, 2021 04:18 PM