UNION DE BANQUES ARABES ET FRANCAISES


Overview

  • Reference: P-Z1-HAB-021
  • Approval date: 07/05/2014
  • Start date: 07/05/2015
  • Appraisal Date: 12/02/2014
  • Status: ApprovedAPVD
  • Implementing Agency: UNION DE BANQUES ARABES EST FRANCAISES
  • Location: France

Description

An unfunded Risk Participation Agreement (RPA) between the African Development Bank (AfDB) and Union de Banques Arabes et Fran


Objectives

To provide guarantees to and with UBAF in support of trade transactions in RMCs.


Rationale

The proposed Risk Participation Agreement (RPA) is designed with a view to contributing to the reduction in Africa


Benefits

The 2008 global recession and the ensuing European debt crisis have left in their trail a host of substantially weakened banks and financial institutions with eroded balance sheets, divested of their appetite for risk and pervasive dearth of liquidity in financial markets. These crises have also engendered the emergence of a stricter supervision regime by regulators worldwide and have led to the imposition of stiffer capital charge requirements for lending by banks and financial institutions. Balance sheet constriction and new capital charge requirements prescribed by Basel 3 have substantially diminished banks


Key contacts

TIJANI Babatunde Oluseyi - OFSD4


Costs

Finance source Amount
ADBUSD 32,312,266
DeltaUSD 32,312,734
TotalUSD 64,625,000