Deutsche Bank and the Eastern and the Southern African Trade and Development Bank (PTA Bank) have signed a memorandum of understanding to encourage financing of commercial exports of US agricultural products.
Under the agreement, PTA Bank will supply irrevocable US denominated letters of credit for imported agricultural products from the US and Deutsche Bank will advise, confirm and negotiate the letters of credit.
The US Department of Agriculture’s Foreign Agricultural Service will administer the programme on behalf of the Commodity Credit Corporation, which issues the credit guarantees.
Tadasse Admassu, president of PTA Bank, explained: “Participation in this programme is important for PTA Bank and will give our importers access to agricultural products from the US.”
“We are pleased to offer this programme to PTA Bank and look forward to providing PTA Bank with the highest level of service,” said Ulf-Peter Noetzel, head of trade finance financial institutions of Western Europe and Africa, global transaction banking at Deutsche Bank.
