Page 6 - ATFPBrochure_en

TRADE FINANCE

Eligible Trade Transactions
ATFP provides financing facilities for eligible trade transactions of goods of Arab origin and
associated services. Goods shall be considered eligible for ATFP financing if produced or
manufactured in an Arab country from primary resources and other domestic components of
production originating in that country, or in any other Arab country, or where the value added
in an Arab country is at least 40% of the value of the goods. ATFP can also finance imports
of capital goods essential for production from non-Arab countries.

National Agencies
ATFP provides its financing
services through its network
of National Agencies which
are primarily banking and
financial institutions spread
throughout the Arab region
and appointed by arrangement
with the indigenous monetary
authorities.

Financing Method
Through lines of credit extended by the Program to its
National Agencies, ATFP refinances Arab exports to Arab
or non-Arab countries. Refinancing of credits for imports
is presently extended to imports from Arab countries, and
imports of capital goods essential for production from non-
Arab countries. The program has also introduced Islamic financing through Murabaha and
Mudaraba facilities, and provides guarantees for eligible trade transactions. ATFP will also
consider participating in forfaiting transactions meeting its eligibility criteria.

Types of Credit
ATFP refinances various types of credits extended by the National Agency to the exporter or
importer in an eligible transaction, and this may include pre-export credits, post-shipment
credits, buyers’ credits and import credits.

Pricing & Tenors
While ATFP provides its refinancing facilities at competitive pricing, the tenors of the refinancing
are convenient and are guided by the type of commodity involved. The maximum tenor for
transactions involving consumer goods is 12 months, while for raw materials it is 18 months,
24 months for intermediary goods and 60 months for capital goods.