TCX has established a program called the “EU Market Creation Facility – Pricing Component” to reflect the strong strategic willingness of the European Commission and TCX to cooperate in order to increase the use of local currency in development finance.
The purpose of the program is to increase access to synthetic local-currency borrowing for institutions based in Sub-Saharan Africa and the ‘European Neighborhood’ and to address short- and medium-term funding requirements triggered by the ongoing pandemic.
With the support of this program, TCX will be able to offer discounted pricing in several target currencies to (development finance) investors. The hope is that this program will help increase debt investments in Sub-Saharan Africa and the European Neighborhood and refinance existing debts, whilst not exposing borrowers to currency risk. By doing so, the program aims to contribute to the stabilization of institutions and to create local-currency lending capacity when and where most needed.
- Information Memorandum EU Market Creation Facility – Pricing Component
- Side Letter EU Market Creation Facility – Pricing Component
- Webinar Slides EU Market Creation Facility – Pricing Component
- FAQ EU Market Creation Facility – Pricing Component
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