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| Sunday, 30 June 2002 |
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More products from HNB The Hatton National Bank (HNB) has made two further additions to its trade finance product range during the second quarter of the year. The first, Trade Facilitation Programme with the European Bank for Reconstruction and Development (EBRD) was initiated by the Deputy General Manager (City and International) Rajendra Theagarajah with Hugh Baylis, Senior Banker, EBRD (Financial Institutions) based in London. Mr. Theagarajah said the EBRD operates in 27 countries of the former Eastern, Central European and CIS bloc. As this entire region is undergoing rapid changes towards open economic reforms, EBRD has committed itself to add value to the inter-regional and international trade flows associated with these countries. In essence EBRD will extend its guarantee to letters of credit, standby letters of credit, bid, performance and advance payment bonds, other forms of payment guarantees, bills of exchange and promissory notes from issuing banks. The guarantee will extend up to 100 per cent of the face value of the underlying trade finance instrument. The agreement with EBRD will enable HNB to act as a 'confirming bank' and add its confirmation to any of these instruments favouring a local exporter. This will be of tremendous benefit to Sri Lankan exporters to the Central, Eastern Europe and former CIS in terms of payment protection. The 22 billion Euro asset base and AAA Rating of EBRD will protect against commercial and political risks on non-payment by the issuing bank from any of the 27 countries covered. The Commodity Credit Corporation (CCC) of the United States Department of Agriculture (USDA) has approved a credit line for HNB to finance the import of agricultural commodities from the US under the CCC's Export Credit Programme GSM-102. This is part of the US$ 35 million allocated by USDA for Sri Lanka for the fiscal year 2002. According to Mr. Theagarajah, any customer of the bank may use extended credit in US dollars up to three years at attractive rates of interest to finance import of agricultural commodities such as raw cotton, wheat and wheat flour from the US. HNB will operate this line of credit in liaison with Cobank, a US$24 billion US bank established in 1916 which specialises in delivering financial solutions to the agribusiness sector. Meanwhile, HNB also became the first bank to take credit card technology to Jaffna when it issued credit cards to the Jaffna community during a ceremony held at the bank's branch in the peninsula. This was followed by a programme on 'Evolution of Modern Payment Systems' for professionals, academics and senior students of the Faculty of Management Studies, University of Jaffna. |
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