ANNOUNCEMENT 24 Jul 2013
On 24 July 2013, the Saudi Fund for Development signed an export financing agreement with the Cooperative and Agricultural Credit Bank of Yemen.
NUMBER OF INTERVENTIONS
Saudi Fund for Development. Arabic. 2013. Arabic. الصندوق يوقع اتفاقية خط تمويل لصالح بنك التسليف التعاوني والزراعي بالجمهورية اليمنية بمبلغ (25) مليون دولار أمريكي. http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s496069c3_e35f_448c_8a0a_0c2ed8086bcf/Page29.jspx?NRow=26&_afrLoop=21352749697713&wc.originURL=%2Fspaces%2Fexportprogram%2Fpage%2FLatest%2BNews%2BDetails&DFile=SEP_ACCORDION_DATAFILE&wc.contextURL=%2Fspaces%2Fexportprogram&_adf.ctrl-state=n377s0ns_605
On 24 July 2013, the state-owned Saudi Fund for Development signed a non-oil export financing agreement with the Cooperative and Agricultural Credit Bank of Yemen. According to the signed agreement, the Saudi Fund for Development approved a credit facility of a value of USD 25 million on behalf of the Cooperative and Agricultural Credit Bank of Yemen. This in turn, according to the signed agreement will enable the Cooperative and Agricultural Credit Bank of Yemen to open up a line of credit which is exclusively designed to finance the non-oil Saudi Arabian exports of various products and services.
Lastly, it is relevant denoting that this export financing agreement was aligned and signed under the framework of the Saudi Export Program established by the Saudi Fund for Development.
The Saudi Export Program -- The Saudi Export Program (SEP) is part of the Saudi Fund for Development and was established in 1999. The program promotes Saudi exports to contribute the country's GDP and minimize the economic dependence of crude oil. In promoting the export of Saudi goods the SEP can support 100% of the value of the eligible export transaction depending on risk and nature of the export. In general, the value of exported good/service must contain a Saudi domestic value of 25% or more as well as the transaction having a minimum value of SAR 100,000 (approx. USD 26,666). Additionally, parties benefiting from the SEP fall into one of the following: Saudi companies and establishments; foreign companies, entities or governments importing or purchasing of Saudi goods or services; or lastly local or foreign banks and financial institutions.
The Saudi Fund for Development -- The Saudi Fund for Development (SFD) was established by Royal Decree No. M/48 of 1 September 1974. The Fund's main objectives are to: 'participate in the financing of development projects in developing countries through granting of loans to said countries and to encourage national non-crude-oil exports by providing finance and insurance in support of such exports.
Cooperative & Agricultural Credit Bank -- Cooperative & Agricultural Credit Bank is a Yemeni commercial bank which provides agricultural, corporate, and retail banking services.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.