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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[  X  ]     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
                         SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002

                                       OR

[     ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                  FOR THE TRANSITION PERIOD FROM       TO
                                                 -----    -----

                        COMMISSION FILE NUMBER 000-26031


                          EURO TRADE & FORFAITING, INC.
             (Exact name of Registrant as specified in its charter)

                   UTAH                                  87-0571580
       (State or other jurisdiction                  (I.R.S.  Employer
     of incorporation or organization)              Identification  No.)

  SUITE 1620, 400 BURRARD STREET, VANCOUVER, BRITISH COLUMBIA, CANADA, V6C 3A6
                    (Address of principal executive offices)

                                 (604) 683-5767
              (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the Registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.    Yes    X    No
                                                -----      -----

Indicate the number of shares outstanding of each of the Registrant's classes of
common  stock,  as  of  the  latest  practicable  date:

             Class                    Outstanding  at  May  14,  2002
             -----                    -------------------------------

     Common Stock, $0.001                        22,240,724
          par  value


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<PAGE>


FORWARD-LOOKING  STATEMENTS

Statements  in  this report, to the extent that they are not based on historical
events,  constitute   forward-looking  statements.   Forward-looking  statements
include,  without  limitation,  statements  regarding  the  outlook  for  future
operations,  forecasts  of  future  costs and expenditures, evaluation of market
conditions, the outcome of legal proceedings, the adequacy of reserves, or other
business  plans.  Investors  are  cautioned  that forward-looking statements are
subject  to  an inherent risk that actual results may vary materially from those
described  herein.  Factors  that  may  result  in such variance, in addition to
those  accompanying  the forward-looking statements, include changes in interest
rates,  prices,  and  other economic conditions; actions by competitors; natural
phenomena;  actions  by  government  authorities;  uncertainties associated with
legal  proceedings; technological development; future decisions by management in
response  to  changing  conditions;  and misjudgments in the course of preparing
forward-looking  statements.



                          PART I. FINANCIAL INFORMATION
                                  ---------------------


ITEM  1.  FINANCIAL  STATEMENTS



                          EURO TRADE & FORFAITING, INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE NINE MONTHS ENDED MARCH 31, 2002

                                  (UNAUDITED)


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<PAGE>


                          EURO TRADE & FORFAITING, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
                            (IN THOUSANDS OF DOLLARS)


<TABLE>
<CAPTION>

                                             MARCH 31, 2002    JUNE 30, 2001
                                             --------------    -------------
<S>                                          <C>               <C>
                                   ASSETS

Current assets
  Cash and cash equivalents                  $       17,089    $      16,535
  Forfaiting assets                                       1                1
  Investments                                         7,904            7,295
  Note receivable - affiliate                         5,000            5,000
  Interest receivable                                   185              223
  Deposits and other current assets                     421              920
                                             --------------    -------------
                                             $       30,600    $      29,974
                                             ==============    =============


                  LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
  Accounts payable and other accrued
    expenses                                 $          864    $         490
                                             --------------    -------------
      Total liabilities                                 864              490

Shareholders' equity
  Common stock                                           22               22
  Additional paid-in capital                         35,139           35,139
  Deficit                                            (5,425)          (5,677)
                                             --------------    -------------
      Total shareholders' equity                     29,736           29,484
                                             --------------    -------------
                                             $       30,600    $      29,974
                                             ==============    =============

</TABLE>


  The accompanying notes are an integral part of these financial statements.


                                        3


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
               (IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>

                                               FOR THE NINE      FOR THE NINE
                                               MONTHS ENDED      MONTHS ENDED
                                               MARCH 31, 2002    MARCH 31, 2001
                                               --------------    --------------
<S>                                            <C>               <C>
Revenue                                        $        1,145    $         (603)

Expenses
  Interest                                                  -                25
  General and administrative                            1,289             1,481
  Foreign currency transaction losses (gains)            (396)              373
                                               --------------    --------------
                                                          893             1,879
                                               --------------    --------------

Net income (loss)                              $          252    $       (2,482)
                                               ==============    ==============

Basic and diluted earnings (loss) per share    $         0.01    $        (0.12)
                                               ==============    ==============

Weighted average number of common shares
  outstanding (in thousands)                           22,241            21,182
                                               ==============    ==============

</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                        4


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
               (IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>

                                          FOR THE THREE     FOR THE THREE
                                          MONTHS ENDED      MONTHS ENDED
                                          MARCH 31, 2002    MARCH 31, 2001
                                          --------------    --------------
<S>                                        <C>               <C>
Revenue                                   $          361    $         (626)

Expenses
  General and administrative                         505               402
  Foreign currency transaction losses                289               564
                                          --------------    --------------
                                                     794               966
                                          --------------    --------------

Net loss                                  $         (433)   $       (1,592)
                                          ==============    ==============

Basic and diluted loss per share          $        (0.02)   $        (0.06)
                                          ==============    ==============

Weighted average number of common shares
  outstanding (in thousands)                      22,241            25,310
                                          ==============    ==============

</TABLE>


The accompanying notes are an integral part of these financial statements.


                                        5


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                            (IN THOUSANDS OF DOLLARS)


<TABLE>
<CAPTION>

                                                  FOR THE NINE      FOR THE NINE
                                                  MONTHS ENDED      MONTHS ENDED
                                                  MARCH 31, 2002    MARCH 31, 2001
                                                  --------------    --------------
<S>                                               <C>               <C>
Cash Flows from Operating Activities
  Net income (loss)                               $          252    $       (2,482)
  Adjustments to reconcile net income (loss)
    to net cash provided by (used in)
    operating activities:
    Investment income (loss)                                (299)            1,177

  Changes in current assets and liabilities:
  Interest receivable                                         38               111
  Forfaiting assets                                            -             3,616
  Accounts payable and other accrued expenses                374               (20)
  Purchase of investments                                 (6,738)           (3,179)
  Proceeds from sale of investments                        6,428               177
  Other                                                      499              (592)
                                                  --------------    --------------
      Net cash provided by (used in)
      operating activities                                   554            (1,192)
                                                  --------------    --------------

Cash Flows from Investing Activities
  Purchase of available for sale securities                    -              (427)
                                                  --------------    --------------
      Net cash used in investing activities                    -              (427)
                                                  --------------    --------------

Cash Flows from Financing Activities
  Loan repayment to banks                                      -            (3,681)
  Change in restricted cash balances                           -             1,139
  Repurchase of common shares                                  -              (500)
  Issuance of common shares and warrants                       -            10,557
                                                  --------------    --------------
      Net cash provided by financing activities                -             7,515
                                                  --------------    --------------

Net increase in cash and cash equivalents                    554             5,896
Cash and cash equivalents, beginning of period            16,535            16,338
                                                  --------------    --------------
Cash and cash equivalents, end of period          $       17,089    $       22,234
                                                  ==============    ==============

</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                        6


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2002
                                   (UNAUDITED)

Note  1.  Basis  of  Presentation
--------  -----------------------

The  interim  period  consolidated financial statements contained herein include
the  accounts  of  Euro  Trade  &  Forfaiting,  Inc.  and  its  subsidiaries
(collectively,  the  "Company").

The  interim  period consolidated financial statements have been prepared by the
Company  pursuant  to  the  rules  and  regulations  of  the U.S. Securities and
Exchange  Commission  (the  "SEC").  Certain information and footnote disclosure
normally included in financial statements prepared in accordance with accounting
principles  generally  accepted  in  the  United  States  have been condensed or
omitted  pursuant  to  such  SEC  rules  and  regulations.  The  interim  period
consolidated  financial  statements  should  be  read  together with the audited
financial statements and the accompanying notes included in the Company's latest
annual  report  on  Form  10-K  for  the fiscal year ended June 30, 2001. In the
opinion  of  the  Company,  the  unaudited  consolidated  financial  statements
contained  herein  contain all adjustments necessary to present a fair statement
of  the  results  of  the  interim  periods  presented.

Note  2.  (Loss)  Earnings  Per  Share
--------  ----------------------------

Basic  (loss) earnings per share is computed by dividing (loss) income available
to  common  shareholders  by  the  weighted  average  number  of  common  shares
outstanding  in  the  period.

Diluted  (loss)  earnings  per  share  takes  into  consideration  common shares
outstanding  (computed  under  basic  (loss) earnings per share) and potentially
dilutive  common shares.  The potentially dilutive common shares did not have an
impact  on diluted earnings per share for the nine months and three months ended
March  31,  2002 and 2001, respectively, because the warrants to purchase common
shares  were  anti-dilutive.

Note  3.  Forfaiting  Assets
--------  ------------------
Forfaiting  is a method of financing international trade.  The Company purchases
from  an  exporter  the  debt due from an importer when credit is required.  The
debt  is  usually evidenced by a series of negotiable financial instruments such
as  promissory  notes or by deferred payment letters of credit opened by a bank.
The  notes  are  usually  guaranteed  by  a  bank in the importer's country and,
subject to the quality of the guarantor, become marketable amongst international
banks  and other financial institutions.  In forfaiting, the notes are purchased
without  recourse  to  the  exporter.

Management  makes  regular  credit  reviews  of  the  forfaiting portfolio on an
individual loan basis. Past experience, current economic conditions and problems
associated  with  borrowers  are  all factors in determining the adequacy of the
allowance  for  losses.  The  allowance  is  increased  by  provision charged to
operating  expense,  and  reduced  by  recoveries  and  charge-offs.

Note  4.  Reclassifications
--------  -----------------

Certain  comparative  figures have been reclassified to conform with the current
period's  presentation.


                                        7


<PAGE>


ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
          RESULTS  OF  OPERATION

The  following discussion and analysis of the financial condition and results of
operation  of the Company for the nine month and three month periods ended March
31,  2002  should  be  read  in  conjunction  with  the  consolidated  financial
statements  and  related  notes  included  in  this  quarterly  report.

Results  of  Operations  -  Nine  Months  Ended  March  31,  2002
-----------------------     -------------------------------------

Revenues  for  the  nine  month  period  ended  March 31, 2002 increased to $1.1
million  from  $(0.6) million for the comparative period of 2001, primarily as a
result  of  an  increase  in  investment  income.

Expenses  for  the  nine  month  period  ended  March 31, 2002 decreased to $0.9
million  from  $1.9  million  in  the comparative period of 2001, primarily as a
result  of  foreign currency transaction gains and reduced forfaiting activities
during  the  current  period.

The  Company  had  net  income of $0.3 million, or $0.01 per share, for the nine
month  period  ended  March 31, 2002, compared to a net loss of $2.5 million, or
$0.12  per  share,  for  the  comparative  period  of  2001.

No  tax  provision has been made for the nine month period ended March 31, 2002,
based  on expected tax liability for the fiscal year.  The Company is subject to
the  tax  laws  of  both  the  United  Kingdom  and  the  United  States.

Results  of  Operations  -  Three  Months  Ended  March  31,  2002
-----------------------     --------------------------------------

Revenues  for  the  three  month  period  ended March 31, 2002 increased to $0.4
million  from  $(0.6) million for the comparative period of 2001, primarily as a
result  of  an  increase  in  investment  income.

Expenses  for  the  three  month  period  ended March 31, 2002 decreased to $0.8
million  from  $1.0  million  for the comparative period of 2001, primarily as a
result of reduced foreign currency transaction losses during the current period.

The  Company  had  a net loss of $0.4 million, or $0.02 per share, for the three
month period ended March 31, 2002, compared to $1.6 million, or $0.06 per share,
for  the  comparative  period  of  2001.

No  tax provision has been made for the three month period ended March 31, 2002,
based  on  expected  tax  liability  for  the  fiscal  year.

Liquidity  and  Capital  Resources
----------------------------------

The  Company had working capital at March 31, 2002 of $29.7 million, compared to
$29.5  million  at  June 30, 2001.  Cash and cash equivalents increased to $17.1
million  at  March  31,  2002 from $16.5 million at June 30, 2001.  At March 31,
2002,  the  Company  had  total  assets of $30.6 million and


                                        8


<PAGE>


total shareholders' equity  of $29.7 million,  compared to total assets of $30.0
million and total shareholders'  equity of  $29.5  million  at  June  30,  2001.

Net  cash provided by operating activities for the nine month period ended March
31,  2002  was $0.6 million, compared to operating activities using cash of $1.2
million  in  the same period of 2001.  Net purchases of investments used cash of
$0.3  million in the current period, compared to $3.0 million in the comparative
period  of  2001.  Forfaiting  activities  did  not  provide any cash during the
current  period,  compared  to providing cash of $3.6 million in the comparative
period  of  2001.  An increase in accounts payable and accrued expenses provided
cash of $0.4 million in the current period, compared to a decrease in same using
cash  of $20,000 in the comparative period of 2001.  A decrease in other current
assets  provided  cash  of  $0.5  million  in the current period, compared to an
increase  in  same using cash of $0.6 million in the comparative period of 2001.

Net  cash used in investing activities in the current period was nil compared to
$0.4  million  in  the comparative period of 2001, primarily due to purchases of
securities.

Net  cash provided by financing activities for the nine month period ended March
31, 2002 was nil, compared to $7.5 million in the same period in 2001, primarily
due  to  the  share  issuance  completed  in  November  2000.

Foreign  Currency
-----------------

Substantially  all  of  the  Company's operations are conducted in international
markets  and  its consolidated financial results are subject to foreign currency
exchange  rate  fluctuations.  As  at  March  31, 2002, approximately 75% of the
Company's  cash  and  cash  equivalents  were  denominated  in  Euros.

Since a substantial portion of the Company's revenues and assets are denominated
in  foreign  currencies,  the  financial  position  of the Company for any given
period,  when  reported  in  U.S.  dollars, can be significantly affected by the
exchange  rates  prevailing  during  that  period.

The  Company does not currently enter into any currency hedging arrangements for
exchange  rate  fluctuations.

ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET RISK

Reference is made to the Company's annual report on Form 10-K for the year ended
June  30,  2001  for  information concerning market risk.  The Company is of the
opinion  that  there have been no material changes in market risk since June 30,
2001.


                                        9


<PAGE>


                           PART II.  OTHER INFORMATION
                                     -----------------

ITEM  1.  LEGAL  PROCEEDINGS

Reference  is  made  to  the Company's annual report of Form 10-K for the fiscal
year  ended  June  30,  2001  for  information  concerning  legal  proceedings.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)     Exhibits

        None.

(b)     Reports  on  Form  8-K

        None.


                                       10


<PAGE>


                                   SIGNATURES

In  accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant  caused  this  report  to be signed on its behalf by the undersigned,
thereunto  duly  authorized.

Dated:  May  14,  2002


                              EURO  TRADE  &  FORFAITING,  INC.

                              By:   /s/  Michael  J.  Smith
                                 ------------------------------
                                 Michael  J.  Smith
                                 President  and  Chief
                                 Executive  Officer


                                       11