Treasury Management Internation Logo

Deutsche Bank Signs Memorandum of Understanding with Eastern and Southern African Trade and Development Bank (PTA Bank) to Establish Export Credit Guarantee Program

Published 

Deutsche Bank today signed a memorandum of understanding (MOU) with Eastern and Southern African Trade and Development Bank (PTA Bank) to offer GSM-102, a program guaranteeing credit to encourage financing of commercial exports of US agricultural products, while providing competitive credit terms to buyers.

Credit guarantees are intended to promote exports to buyers located in developing countries who have the financial strength and foreign exchange capabilities to make scheduled payments. US Department of Agriculture’s Foreign Agricultural Service will administer the program on behalf of the Commodity Credit Corporation, which issues the credit guarantees.

PTA Bank will issue irrevocable US dollar denominated letters of credit for the import of eligible agricultural products from the US and Deutsche Bank will advise, confirm and negotiate these letters of credit as well as provide post-shipment financing in accordance with the GSM-102 program regulations.

Deutsche Bank also provides other trade finance services, including letters of credit confirmations and letters of credit post-financings outside of the GSM-102 program.

PTA Bank’s mandate is to finance and foster trade, socio-economic development and regional economic integration across its Member States throughout Eastern and Southern Africa. It offers a broad range of products and services, across both the private and public sectors, including debt, equity and quasi-equity as well as guarantees. The Bank’s investments cut across agriculture, trade, industry, infrastructure, energy and tourism, among others and are made on a commercial basis and sustainability principles.

“Participation in this program is important for PTA Bank and will give our importers access to agricultural products from the US,” said Mr.Tadesse Admassu, President of PTA Bank. “Deutsche Bank is one of the most recognized and knowledgeable providers of this program and cooperating closely with Deutsche Bank will allow PTA Bank to further advance its mission of fostering economic and trade development in the region.”

“We are pleased to offer this program to PTA Bank,” said Ulf-Peter Noetzel, Head of Trade Finance Financial Institutions – Western Europe & Africa, Global Transaction Banking, at Deutsche Bank. “As the leading bank for GSM-102 business in Africa, and in close coordination with the Commodity Credit Corporation and the US Department of Agriculture’s Foreign Agricultural Service, we look forward to providing PTA bank with the highest level of service.”

Most recent episodes

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...

25:12

HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...

16:24

The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...

33:16

HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....

20:58

Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...

34:25

HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...

25:48

Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...

28:21

Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...

16:54

Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...

23:55

Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the elements...

23:55