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 SEPTEMBER 30, 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.)

     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  November  9,  2001
         -----                    -----------------------------------

   Common  Stock,  $0.001                      22,240,724
         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 THREE MONTHS ENDED SEPTEMBER 30, 2001

                                  (UNAUDITED)


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                          CONSOLIDATED BALANCE SHEETS
                      SEPTEMBER 30, 2001 AND JUNE 30, 2001
                                  (UNAUDITED)
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>


                                              SEPTEMBER 30, 2001    JUNE 30, 2001
                                             --------------------  --------------
<S>                                          <C>                   <C>
                              ASSETS
Current assets
  Cash and cash equivalents                  $            23,234   $       16,535
  Forfaiting assets                                            1                1
  Investments                                              1,471            7,295
  Note receivable - affiliate                              5,000            5,000
  Interest receivable                                        343              223
  Deposits and other current assets                        1,087              920
                                             -------------------   --------------
                                             $            31,136   $       29,974
                                             ===================   ==============


                      LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
  Accounts payable and other accrued
    expenses                                 $                71   $          490
                                             -------------------   --------------
  Total liabilities                                           71              490

Shareholders' equity
  Common stock                                                22               22
  Additional paid-in capital                              35,139           35,139
  Retained deficit                                        (4,096)          (5,677)
                                             -------------------   --------------
  Total shareholders' equity                              31,065           29,484
                                             -------------------   --------------
                                             $            31,136   $       29,974
                                             ===================   ==============


</TABLE>


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


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                  (UNAUDITED)
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>


                                               FOR THE THREE        FOR THE THREE
                                               MONTHS ENDED         MONTHS ENDED
                                               SEPTEMBER 30,2001    SEPTEMBER 30,2000
                                              ------------------    ------------------
<S>                                           <C>                   <C>
Revenue                                       $              860    $             25

Expenses
  Interest                                                     -                  24
  General and administrative                                 285                 474
  Foreign currency transaction gains                      (1,006)               (160)
                                              ------------------    ----------------
                                                            (721)                338
                                              ------------------    ----------------
       Net income (loss)                      $            1,581    $           (313)
                                              ==================    ================

Basic and diluted earnings (loss) per share   $             0.07    $          (0.02)
                                              ==================    ================

Weighted average number of common shares
  outstanding (in thousands)                              22,241              16,945
                                              ==================    ================

</TABLE>


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


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                  (UNAUDITED)
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>


                                                      FOR THE THREE          FOR THE THREE
                                                      MONTHS ENDED           MONTHS ENDED
                                                      SEPTEMBER 30,2001      SEPTEMBER 30, 2000
                                                     -------------------     -----------------
<S>                                                  <C>                     <C>
Cash Flows from Operating Activities
  Net income (loss)                                  $            1,581      $            (313)
  Adjustments to reconcile net income (loss) to
    net cash provided by operating activities:
      Gains on investments                                         (571)                    -

  Changes in current assets and liabilities:
      Interest receivable                                          (120)                  109
      Forfaiting assets                                               -                 3,341
      Accounts payable and other accrued expenses                  (419)                    2
      Purchase of investments                                       (33)                 (427)
      Proceeds from sale of investments                           6,428                     -
      Other                                                        (167)                 (213)
                                                     ------------------      ----------------
        Net cash providing by operating activities                6,699                 2,499
                                                     ------------------      ----------------

Cash Flows from Investing Activities
        Net cash provided by investing actives                        -                     -
                                                     ------------------      ----------------

Cash Flows from Financing Activities
  Loan repayment to banks                                             -                (3,375)
  Change in restricted cash balances                                  -                 1,139
                                                     ------------------     -----------------
        Net cash used in financing activities                         -                (2,236)
                                                     -------------------    -----------------

        Net increase in cash and cash
          equivalents                                             6,699                   263

Cash and cash equivalents, beginning of period                   16,535                16,338
                                                     ------------------   -------------------
Cash and cash equivalents, end of period             $           23,234   $            16,601
                                                     ==================   ===================


</TABLE>


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


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 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 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.  EARNINGS  (LOSS)  PER  SHARE

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

Diluted  earnings  per  share takes into consideration common shares outstanding
(computed  under  basic  earnings  per  share)  and  potentially dilutive common
shares.  There were no potentially dilutive common shares at September 30, 2000.
The  potentially  dilutive  common  shares did not have an impact on the diluted
earnings  per  share  for  the three months ended September 30, 2001 because the
warrants  to  purchase  common  stock  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.


<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 three month period ended September
30,  2001  should  be  read  in  conjunction  with  the  consolidated  financial
statements  and  related  notes  included  elsewhere  herein.

RESULTS  OF  OPERATIONS  -  THREE  MONTHS  ENDED  SEPTEMBER  30,  2001

Revenues  for  the three month period ended September 30, 2001 increased to $0.9
million  from  $25,000 for the comparative period of 2000, primarily as a result
of  interest  income  accrued  by  the  note  receivable  and  gain  on  sale of
investment.

Cost  of revenues were ($0.7) million for the three month period ended September
30,  2001,  compared  to $0.3 million in the same period of 2000, primarily as a
result  of  foreign  currency  transaction  gains.

The  Company  had  net income of $1.6 million, or $0.07 per share, for the three
month  period ended September 30, 2001, compared to net loss of $0.3 million, or
$0.02  per  share,  for  the  comparative  period  of  2000.

LIQUIDITY  AND  CAPITAL  RESOURCES

Cash  and cash equivalents increased to $23.2 million at September 30, 2001 from
$16.5  million  at  June  30,  2001.

Net  cash  provided  by  operating  activities  for the three month period ended
September 30, 2001 was $6.7 million, compared to $2.5 million in the same period
in  2000,  primarily  due  to  the  proceeds  from  the  sale  of  investments.

Net cash used by financing activities for the three month period ended September
30,  2001  was  $nil,  compared  to  $2.2  million  in  the same period in 2000.

At  September 30, 2001, the Company had total assets and shareholders' equity of
$31.1 million, compared to total assets of $30.0 million and total shareholders'
equity  of  $29.5  million  at  June  30,  2001.

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 September 30, 2001, approximately 64% of the
Company's  cash  and  cash  equivalents  were  denominated  in  euros.


<PAGE>


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 were no material changes in market risk since June 30, 2001.


<PAGE>


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


ITEM  1.  LEGAL  PROCEEDINGS

Reference  is  made  to  the Company's annual report on 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

None.


<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:  November  12,  2001


                              EURO  TRADE  &  FORFAITING,  INC.

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