The European Commission and TCX join forces in an innovative project to subsidize the costs of local currency hedging for development lending in frontier currency, Global Capital reports.
Based on interviews with CEO Ruurd Brouwer, and Head of Structuring Jérôme Pirouz (TCX), Global Capital describes how this experimental project will encourage local currency lending from development finance institutions (DFIs) to their clients, by reducing the cost of hedging into frontier currencies.
The first iteration of a European Commission facility to provide financial support to reduce the cost of local currency hedge for up to EUR 60mm was heavily oversubscribed.
Please find the articles on Global Capital’s website:
EU Commission subsidises local currency lending to Azerbaijan