Credit Lines

Credit lines have the purpose to provide selected banks with short to medium-term capital not available in the market and to encourage establishment of long term relationship between these banks and their clients in particular for trade finance operations and provision of medium term financing to SMEs. Only financial institutions being authorized by BSTDB as financial intermediaries are eligible to participate as borrowers for on-lending.


Financing is normally to be provided in the form of revolving funds but may also be in the form of back-to back facilities or bullet loans through intermediary/client financial institutions incorporated in the respective member country, with an acceptable branch network, prior good quality experience in trade finance, leasing or SME financing, controlled by local and/or regional interests, when possible. The credit line shall normally have a maturity of 3 to 7 years.


 As a rule, BSTDB will only take the risk of the financial intermediary, and not that of the recipient of the sub-loan.