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,  2001

                                        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  of          (I.R.S.  Employer
     incorporation  or  organization)            Identification  No.)

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

                                 (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,  2001
           -----                       -------------------------------
     Common  Stock,  $0.001                      22,245,224
        par  value


<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,  2001

                          (UNAUDITED)


<PAGE>
<TABLE>
<CAPTION>

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


                                              MARCH 31, 2001    JUNE 30, 2000
                                             ----------------  ---------------
<S>                                          <C>               <C>
ASSETS
Current assets
Cash and cash equivalents                    $        22,234   $       16,338
Restricted cash balances                                   -            1,139
Trading securities                                     1,825                -
Forfaiting assets                                          1            3,617
Note receivable                                        5,000            5,000
Interest receivable                                      100              211
Other                                                  1,046              454
                                             ----------------  ---------------
  Total current assets                                30,206           26,759

Investment                                               427                -
                                             ----------------  ---------------
  Total assets                               $        30,633   $       26,759
                                             ================  ===============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable and other accrued expenses  $            66   $           86
Bank loans payable                                         -            3,681
                                             ----------------  ---------------
  Total liabilities                                       66            3,767

Shareholders' equity
  Common stock                                            23               17
Additional paid-in capital                            35,315           25,264
Deficit                                               (4,771)          (2,289)
                                             ----------------  ---------------
  Total shareholders' equity                          30,567           22,992
                                             ----------------  ---------------
                                             $        30,633   $       26,759
                                             ================  ===============
</TABLE>


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

<PAGE>
<TABLE>
<CAPTION>

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


                                                FOR THE NINE      FOR THE NINE
                                                MONTHS ENDED      MONTHS ENDED
                                               MARCH 31, 2001    MARCH 31, 2000
                                              ----------------  ----------------
<S>                                           <C>               <C>
REVENUE                                       $           574   $         1,435

EXPENSE
  Interest                                                 25               437
  General and administrative                            1,854             1,528
  Provision for losses on forfaiting assets                 -               537
                                              ----------------  ----------------
                                                        1,879             2,502
                                              ----------------  ----------------
LOSS BEFORE OTHER ITEMS                                (1,305)           (1,067)

OTHER ITEMS
  Investment loss                                      (1,177)           (1,115)
                                              ----------------  ----------------

Net loss                                      $        (2,482)  $        (2,182)
                                              ================  ================

Basic and diluted loss per share              $         (0.12)  $         (0.13)
                                              ================  ================

Weighted average number of common shares
  outstanding (in thousands)                           21,182            16,945
                                              ================  ================
</TABLE>



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

<PAGE>
<TABLE>
<CAPTION>

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


                                               FOR THE THREE     FOR THE THREE
                                               MONTHS ENDED      MONTHS ENDED
                                               MARCH 31, 2001    MARCH 31, 2000
                                              ----------------  ----------------
<S>                                           <C>               <C>
REVENUE                                       $           332   $          (222)

EXPENSES
  Interest                                                  -               128
  General and administrative                              966               405
  Provision for losses on forfaiting assets                 -               537
                                              ----------------  ----------------
                                                          966             1,070
                                              ----------------  ----------------

LOSS BEFORE OTHER ITEMS                                  (634)           (1,292)

OTHER ITEMS
  Investment loss                                        (958)              (15)
                                              ----------------  ----------------


Net loss                                      $        (1,592)  $        (1,307)
                                              ================  ================

Basic and diluted loss per share              $         (0.06)  $         (0.08)
                                              ================  ================

Weighted average number of common shares
  outstanding (in thousands)                           25,310            16,945
                                              ================  ================
</TABLE>


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

<PAGE>
<TABLE>
<CAPTION>

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



                                                   FOR THE NINE      FOR THE NINE
                                                   MONTHS ENDED      MONTHS ENDED
                                                  MARCH 31, 2001    MARCH 31, 2000
                                                 ----------------  ----------------

<S>                                              <C>               <C>
Cash Flows from Operating Activities
  Net loss                                       $        (2,482)  $        (2,182)
  Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
  Investment loss                                          1,177             1,115
  Provision for losses on forfaiting assets                    -               537
  Changes in current assets and liabilities:
  Interest receivable                                        111             1,123
  Forfaiting assets                                        3,616            10,320
  Accounts payable and other accrued expenses                (20)             (319)
  Other                                                     (592)              114
                                                 ----------------  ----------------
                                                           1,810            10,708

  Purchases of trading securities                         (3,179)                -
  Proceeds from sale of trading securities                   177                 -
                                                 ----------------  ----------------
      Net cash provided by (used in) operating
        activities                                        (1,192)           10,708
Cash Flows from Investing Activities
  Increase in note receivable                                  -            (5,000)
  Purchase of available for sale securities                 (427)                -
                                                 ----------------  ----------------
      Net cash used in investing activities                 (427)           (5,000)

Cash Flows from Financing Activities
  Receivable from shareholders                                 -                 1
  Loan repayment to banks                                 (3,681)           (1,553)
  Payment of other amounts due to banks                        -            (9,567)
  Change in restricted cash balances                       1,139            11,243
  Repurchase of common shares                               (500)                -
  Proceeds from issuance of common shares and
    warrants                                              10,557                 -
                                                 ----------------  ----------------
      Net cash provided by financing activities            7,515               124
                                                 ----------------  ----------------

      Net increase in cash and cash equivalents            5,896             5,832

Cash and cash equivalents, beginning of period            16,338             9,927
                                                 ----------------  ----------------
Cash and cash equivalents, end of period         $        22,234   $        15,759
                                                 ================  ================

</TABLE>



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

<PAGE>
                          EURO TRADE & FORFAITING, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2001
                                   (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 generally
accepted  accounting  principles 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, 2000.  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 earnings per
share)  and  potentially  dilutive  common  shares.

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.

The following disclosure of the estimated fair value of financial instruments is
made  in accordance with the requirements of SFAS No. 107, Disclosure about Fair
Value  of  Financial  Instruments.  The  estimated  fair value amounts have been
determined  by  the  Company  and  independent  experts  using  available market
information  and  appropriate  valuation  methodologies.

The  fair  value of the non-impaired financial instruments approximates carrying
value  due to the short-term maturity of the instruments.  The fair value of the
non-impaired financial instruments is (in thousands) nil and $3,616 at March 31,
2001  and  June  30,  2000,  respectively.

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.

The following disclosure of the financial instruments which are impaired is made
in accordance with the requirements of SFAS No. 118, Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures. The carrying value of
the  impaired  financial  instruments  is  measured  at  fair  value.

The  fair  value  of  the  impaired  financial  instruments  is  as  follows (in
thousands):
<TABLE>
<CAPTION>



                                                                                  March 31,    June 30,
                                                                                    2001         2000
                                                                                 -----------  ----------
                                                                                 (unaudited)
<S>                                                                              <C>          <C>
Recorded investments in impaired
  financial instruments                                                          $    1,000   $   1,000
Less allowance for losses                                                              (999)       (999)
                                                                                 -----------  ----------
Fair value of impaired
  financial instruments                                                          $        1   $       1
                                                                                 ===========  ==========

The activity in the allowance for losses account is as follows (in thousands):

                                                                             Nine Months      Year Ended
                                                                                Ended          June 30,
                                                                            March 31, 2001       2000
                                                                           ---------------    ----------
                                                                              (unaudited)
Beginning balance                                                             $      999      $   6,740
  Provision for loss                                                                   -            537
  Reductions - sale of asset                                                           -         (6,278)
                                                                              -----------     ----------
Ending balance                                                                $      999      $     999
                                                                              ===========     ==========
</TABLE>



The  Company  does  not  accrue  interest on its impaired financial instruments.
Therefore,  no  interest income was recognized during the impairment period. Any
cash  receipts  on  these  financial  instruments  are  recorded  as income when
collected.

Note  4.  Reclassification

Certain  comparative  figures have been reclassified to conform with the current
periods  presentation.

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

The following information discussion and analysis of the financial condition and
results  of  operation  of the Company for the nine month period ended March 31,
2001  should  be  read in conjunction with the consolidated financial statements
and  related  notes  included  elsewhere  herein.

RESULTS  OF  OPERATIONS  -  NINE  MONTHS  ENDED  MARCH  31,  2001

Revenues for the nine month period ended March 31, 2001 decreased by 60% to $0.6
million  from  $1.4  million  for the comparative period of 2000, primarily as a
result  of  a  reduction  in  trading  activity  due  to  deteriorating  market
conditions,  which  resulted in a decrease in the portfolio of forfaiting assets
and  an  increase in cash and cash equivalents. Revenue in the nine month period
ended  March 31, 2001 arose from interest income from forfaiting assets and note
receivable.

Expenses decreased by 25% for the nine month period ended March 31, 2001 to $1.9
million from $2.5 million in the comparative period of 2000.  The Company made a
provision  for  losses of $0.5 million for the nine months ended March 31, 2000.

General  and  administrative  expenses for the nine month period ended March 31,
2001  increased  to  $1.9  million from $1.5 million in the same period in 2000.

The Company had net loss of $2.5 million, or $0.12 per share, for the nine month
period  ended March 31, 2001, compared to net loss of $2.2 million, or $0.13 per
share,  for  the  comparative  period  of  2000.

No tax provision has been made for the nine month period ended March 31, 2001 or
for the fiscal year ended June 30, 2000, based on pre-tax operation losses.  The
Company is subject to the tax laws of both the United Kingdom and United States.

RESULTS  OF  OPERATIONS  -  THREE  MONTHS  ENDED  MARCH  31,  2001

Revenues  for  the  three  month  period  ended March 31, 2001 increased to $0.3
million  from  $(0.2 million) for the comparative period of 2000, primarily as a
result  of  interest  income  accrued  from  note  receivable.

Expenses  were  $1.0 million for the three month period ended March 31, 2001 and
2000,  respectively.

General  and  administrative expenses for the three month period ended March 31,
2001  increased  to  $1.0  million from $0.4 million in the same period in 2000,
primarily  as  a  result  of  exchange loss on conversion of assets at March 31,
2001.

<PAGE>

The  Company  had  net  loss  of $1.6 million, or $0.06 per share, for the three
month period ended March 31, 2001 compared to net loss of $1.3 million, or $0.08
per  share,  for  the  comparative  period  of  2000.

LIQUIDITY  AND  CAPITAL  RESOURCES

Working capital at March 31, 2001 was $30.1 million compared to $23.0 million at
June  30,  2000. This 31% increase in working capital is attributable to a share
issuance  completed  in  November  2000 and a $3.7 million decrease in bank loan
payable.  Partially  offsetting  the  increase  in  working  capital  was a $3.6
million  decrease  in  forfaiting  assets,  reflecting  the sale and maturity of
assets  during  the  period with no corresponding further acquisition of assets.

Net  cash used in operating activities for the nine month period ended March 31,
2001  was  $1.2  million compared to providing cash of $10.7 million in the same
period  in  2000.  This  was due primarily to a decrease in the sale/maturity of
forfaiting  assets  and  purchase  of  trading  securities.

Net  cash provided by financing activities for the nine month period ended March
31,  2001  was $7.5 million compared to $0.1 million in the same period in 2000.
This  was  due  primarily  to  a  share  issuance  completed  in  November 2000.

Cash  and  cash  equivalents  increased  to $22.2 million at March 31, 2001 from
$16.3  million  at  June  30,  2000.

At  March  31,  2001,  the  Company had total assets and shareholders' equity of
$30.6 million each, compared to total assets of $26.8 million and shareholders'
equity  of  $23.0  million  at  June  30,  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, 2001, approximately 62.3% of the
Company's  cash  and  cash  equivalents  are  denominated  in  Euros.

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

<PAGE>

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,  2000  for  information concerning market risk.  The Company is of the
opinion  that there were no material changes in market risk since June 30, 2000.


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

ITEM  1.  LEGAL  PROCEEDINGS

On  April  3,  2001,  North Cascade Limited, Collingwood Investments Limited and
Kishor  Kumar  Kantilal  Naik (collectively, the "Plaintiffs") filed a Notice of
Voluntary  Dismissal with the United States District Court, Southern District of
New  York,  thereby  dismissing  the  amended  verified complaint brought by the
Plaintiffs  against,  among others, the Company as nominal defendant.  A copy of
the  Notice  of  Voluntary  Dismissal  will  be  sent to all shareholders of the
Company  as  of  March  31,  2001.

ITEM  5.  OTHER  INFORMATION

In  March  2001,  the  Company repurchased and cancelled 2,025,000 shares of its
common  stock, par value $0.001, from one vendor in a private transaction for an
aggregate  of  $500,000.  The  Company  paid  the  purchase  price  from working
capital.  In  April  2001,  the  Company  received  in  settlement and cancelled
910,000  shares  of  its  common  stock,  par value $0.001, and in May 2001, the
Company received in settlement and cancelled 265,000 shares of its common stock,
par  value  $0.001.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(A)     EXHIBITS

None.

(B)     REPORTS  ON  FORM  8-K

     The  Company  filed  the  following  reports  with respect to the indicated
items:

     Form  8-K  dated  March  15,  2001
     Item  1.  Changes  in  Control  of  Registrant



<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,  2001


                 EURO  TRADE  &  FORFAITING,  INC.

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