$200m has been given to Zenith Bank to assist them to maintain the foreign currency trade flows impacted by the coronavirus pandemic.The eligible sub-borrower involved in the manufacture and supply of medical resources required to fight the COVID”19 global pandemic, they also allow Zenith bank to on-lend to them.
Mr. Ebenezer Onyeagwu, the Group Managing Director/Chief Executive of Zenith Bank talking on the facilities said “The Afreximbank facility undoubtedly underscores the confidence reposed in Zenith Bank, and it will enable the bank to contribute to the fight against the COVID-19 pandemic by providing trade finance and foreign currency funding for the importation of urgent medical equipment and raw materials.”
According to Tier-1 capital Zenith Bank Plc is the largest in Nigeria. More than 9 million corporate and individual clients through its network of over 500 branches across Nigeria and its subordinate in Ghana, Sierra Leone, United kingdom and Gambia. It also has a representative office in Beijing China, and Dubai (UAE) a branch of Zenith Bank UK.
“The Pandemic Trade Impact Mitigation Facility (PATIMFA) is designed to support and stabilise the foreign exchange resources of African countries, enabling them to support critical imports under emergency conditions. We are pleased to contribute to keeping economies going especially during this pandemic. The role that banks such as Zenith Bank play in Africa is huge. Supporting them to carry out their mandate is our greatest contribution to making sure that African countries and institutions build back better from the shocks of the pandemic.” Prof. Benedict Oramah, President of Afreximbank, said.
In march 2020 PATIMFA was set up to provide financing to assist Afreximbank member countries to adapt the shock caused by the COVID’19 pandemic financially, economically and in health services.
This 3-year medium-term facility has been availed through direct funding. US$3.5 billion has been disbursed under PATIMFA. Furthermore, the bank has given a grant of US$3 million to the African Center for Disease Control, the Covid’19 Special Fund set up by the African Union and other agencies. Afreximbank has a history of providing support to African economies in times of economic crisis. Counter-Cyclical Trade Liquidity Facility was introduced by the bank during 2015 economic crisis under which it disbursed more than $10 billion to the countries member to survive the fierce economic shocks. This facility helped key African economies to handle that crisis and recover quickly.