The Master Risk Participation Agreement (MRPA) offered by ETC is a Risk Sharing Agreement (BAFT), based on English law. It allows leading banks (correspondent banks) to syndicate their risks in Trade Finance transactions, particularly in the context of transactions with African markets.
The type of risk participation offered by ETC Export Trading Cooperation is participation by signature authenticated by Swift interbank messaging. Indeed, ETC is rated A3- (risk category 2 “low” according to the EU classification) with the European Securities and Markets Authority (ESMA) by an External Credit Assessment Institution (ECAI), in accordance with to Regulation (EC) No. 1060/2009. This “Investment Grade” rating allows risk weighting for regulatory purposes.
The shortage of correspondent banks and other financial institutions inclined to African risk is now proven. This state of affairs sometimes pushes African issuing banks and their importing clients to give up. The volume of transactions delayed or canceled due to this situation constitute a real obstacle to the development of African markets.
It is in this context that ETC – Export Trading & Cooperation proposes to potential Correspondent Banks the ratification of a Master Risk Participation Agreement (MRPA). It will be made with this agreement, possible to share the risk of default and reduce the risk of concentration on a portfolio of transactions, thanks to the implementation of hedging lines specific to each counterparty.
The ETC Master Risk Participation Agreement (MRPA) is a risk sharing agreement signed between ETC and the Correspondent Bank to enable the latter to syndicate its risks in Trade Finance transactions with Issuing Banks based in Africa.
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PARTICIPANT : ETC – Export Trading & Cooperation |
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FORMULA : AGR = (AF/TR) + (IF/TR) + CF
LEGENDE :
