The Export-Import Bank of the Republic of China and Cathay United Bank signed Relending Facility Agreement to assist Taiwan exporters in expanding overseas market
In order to assist Taiwan exporters in expanding overseas markets and coordinate with the government’s promotion of New Southbound Policy, The Export-Import Bank of the Republic of China (Eximbank) and Cathay United Bank signed Relending Facility Agreement in April this year.
Relending Facility is a bank-to-bank arrangement by which Eximbank extends a credit line to overseas financial institutions in support of financing their clients’ importation from Taiwan. Relending Facility can lighten the burden on both exporters and importers so as to increase foreign importers’ purchase intentions toward Taiwan products as well as enhance international competitiveness of Taiwan products. At the end of April, Eximbank established relending facilities in 28 countries for a total of 76 financial institutions.
Cathay United Bank was established in 1975 and won “The Best Trade Finance Bank in Taiwan'' from The Asian Banker in 2018. After establishing relending relationship with Eximbank, overseas branches of Cathay United Bank such as Manila Branch in Philippines, Singapore Branch, Labuan Branch in Malaysia, Chu Lai Branch in Vietnam, Vientiane Capital Branch in Laos, Offshore Banking Unit together with Cathay United Bank (Cambodia) Corporation Limited which signed the Relending Facility Agreement in 2017 would be able to finance importers within the credit limits. It is expected that Taiwan products would be more competitive to enter overseas markets through the cooperation of Relending Facility so as to implement Eximbank’s vision “Strengthen Trade Finance and Assist External Trade”.