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 DECEMBER 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 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 February 13,  2002
              -----                     ---------------------------------
      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 SIX MONTHS ENDED DECEMBER 31, 2001

                                  (UNAUDITED)


<PAGE>


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


<TABLE>
<CAPTION>


                                           DECEMBER 31, 2001      JUNE 30, 2001
                                           -----------------      -------------
<S>                                        <C>                     <C>
                               ASSETS


Current assets
   Cash and cash equivalents                 $     16,209           $   16,535
   Forfaiting assets                                    1                    1
   Investments                                      7,821                7,295
   Note receivable - affiliate                      5,000                5,000
   Interest receivable                                229                  223
   Deposits and other current assets                1,850                  920
                                             ------------           ----------
                                             $     31,110           $   29,974
                                             ============           ==========


                   LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
   Accounts payable and other
     accrued expenses                        $        941           $      490

                                             ------------           ----------
     Total liabilities                                941                  490

Shareholders' equity
   Common stock                                        22                   22
   Additional paid-in capital                      35,139               35,139
   Deficit                                         (4,992)              (5,677)
                                             ------------           ----------
     Total stockholders' equity                    30,169               29,484
                                             ------------           ----------
                                             $     31,110           $   29,974
                                             ============           ==========

</TABLE>




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


<PAGE>


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


<TABLE>
<CAPTION>


                                        FOR THE SIX              FOR THE SIX
                                        MONTHS ENDED             MONTHS ENDED
                                        DECEMBER 31, 2001        DECEMBER 31, 2000
                                        -----------------        -----------------
<S>                                           <C>                  <C>
Revenue                                   $      784               $       23

Expenses
   Interest                                        -                       25
   General and administrative                    784                    1,079
   Foreign currency transaction gains           (685)                    (191)
                                          ----------               ----------
                                                  99                      913
                                          ----------               ----------

Net income (loss)                         $      685               $     (890)
                                          ==========               ==========

Basic and diluted earnings
  (loss) per share                        $     0.03               $     (0.05)
                                          ==========               ===========

Weighted average number of
  common shares outstanding
  (in thousands)                              22,241                    19,163
                                          ==========               ===========


</TABLE>




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


<PAGE>


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


<TABLE>
<CAPTION>


                                      FOR THE THREE           FOR THE THREE
                                      MONTHS ENDED            MONTHS ENDED
                                      DECEMBER 31, 2001       DECEMBER 31, 2000
                                      -----------------       -----------------
<S>                                  <C>                      <C>

Revenue                                 $     (76)              $      (2)

Expenses
   Interest                                     -                       1
   General and administrative                 499                     605
   Foreign currency transaction
     loss (gains)                             321                     (31)
                                        ---------               ---------
                                              820                     575
                                        ---------               ---------

Net loss                                $    (896)              $    (577)
                                        =========               =========

Basic and diluted loss per share        $   (0.04)              $   (0.03)
                                        =========               =========

Weighted average number of
  common shares outstanding
  (in thousands)                           22,241                  21,380
                                        =========               =========


</TABLE>




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


<PAGE>


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


<TABLE>
<CAPTION>


                                                    FOR THE SIX           FOR THE SIX
                                                    MONTHS ENDED          MONTHS ENDED
                                                    DECEMBER 31, 2001     DECEMBER 31, 2000
                                                    -----------------     -----------------
<S>                                                 <C>                    <C>
Cash Flows from Operating Activities
  Net income (loss)                                 $      685            $      (890)
  Adjustments to reconcile net income (loss) to
   net cash provided by (used in) operating
   activities:
      Investment (income) loss                            (216)                   219

Changes in current assets and liabilities:
      Interest receivable                                   (6)                   143
      Forfaiting assets                                      -                  3,608
      Accounts payable and other accrued expenses          451                     40
      Purchase of investments                           (6,738)                (1,855)
      Proceeds from sale of investments                  6,428                    177
      Other                                               (930)                  (254)
                                                    ----------            -----------
          Net cash provided by (used in)
            operating activities                          (326)                 1,188
                                                    ----------            -----------

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

Cash Flows from Financing Activities
      Loan repayments to banks                               -                 (3,681)
      Change in restricted cash balances                     -                  1,139
      Issuance of common shares and warrants                 -                 10,557
                                                    ----------            -----------
          Net cash provided by
            financing activities                             -                  8,015
                                                    ----------            -----------

          Net increase (decrease) in cash
            and cash equivalents                          (326)                 9,203

Cash and cash equivalents, beginning of period          16,535                 16,338
                                                    ----------            -----------

Cash and cash equivalents, end of period            $   16,209            $    25,541
                                                    ==========            ===========


</TABLE>




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


<PAGE>


                          EURO TRADE & FORFAITING, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 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 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 six months and the three months
ended December 31, 2001 and 2000, respectively, 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 discussion and analysis of the financial condition and results of
operation  of  the  Company  for  the  six  month  and three month periods ended
December  31, 2001 should be read in conjunction with the consolidated financial
statements  and  related  notes  included  elsewhere  herein.

RESULTS  OF  OPERATIONS  -  SIX  MONTHS  ENDED  DECEMBER  31,  2001

Revenues  for  the  six  month  period ended December 31, 2001 increased to $0.8
million  from  $23,000 for the comparative period of 2000, primarily as a result
of  an  increase  in  investment  income.

Expenses  for  the six month period ended December 31, 2001 decreased to $99,000
from  $0.9 million in the comparative period of 2000, primarily as a result of a
reduction  in  general  and  administrative  expenses and an increase in foreign
currency transaction  gains.

The  Company  had  net  income  of $0.7 million, or $0.03 per share, for the six
month  period  ended December 31, 2001, compared to net loss of $0.9 million, or
$0.05  per  share,  for  the  comparative  period  of  2000.

No tax provision has been made for the six month period ended December 31, 2001,
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  DECEMBER  31,  2001

Revenues  for  the  three  month  period  ended  December  31, 2001 decreased to
$(76,000)  from  $(2,000)  for  the  comparative  period of 2000, primarily as a
result  of  investment  loss  in  the  current  period.

Expenses  for  the  three month period ended December 31, 2001 increased to $0.8
million  from  $0.6  million  in  the comparative period of 2000, primarily as a
result  of  foreign  currency  transaction  losses.

The  Company  had  a net loss of $0.9 million, or $0.04 per share, for the three
month  period ended December 31, 2001 compared to a net loss of $0.6 million, or
$0.03  per  share,  for  the  comparative  period  of  2000.

No  tax  provision  has  been made for the three month period ended December 31,
2001, based expected tax liability for the fiscal year.

LIQUIDITY  AND  CAPITAL  RESOURCES

Working  capital  at  December  31,  2001  increased to $30.2 million from $29.5
million  at  June 30, 2001, primarily as a result of earnings in the current six
month period.

Net  cash  used  in operating activities for the six month period ended December
31, 2001 was $0.3 million, compared to net cash provided by operating activities
of  $1.2  million  in  the  same  period  in  2000.  This was due primarily to a
decrease  in  forfaiting  activities  in  the  current  period.


<PAGE>


Net  cash  used  by investing activities for the six month period ended December
31,  2001  and  2000,  respectively,  was  nil.

Net  cash  provided  by  financing  activities  for  the  six month period ended
December  31, 2001 was nil, compared to $8.0 million in the same period in 2000,
primarily  as  a  result  of  the  share  issuance  completed  in November 2000.

Cash  and  cash equivalents decreased to $16.2 million at December 31, 2001 from
$16.5  million  at  June  30,  2001.

At  December  31,  2001,  the  Company  had  total  assets  of $31.1 million and
stockholders' equity of $30.2 million, compared to total assets of $30.0 million
and  total  stockholders'  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 December 31, 2001, approximately 80% 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 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 fiscial
year  ended  June  30,  2001  for  information  concerning  legal  proceedings.


<PAGE>


ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

The  Company  held  its annual meeting of shareholders on December 18, 2001.  At
the  meeting, Michael J. Smith, James Carter, Slobodan Andjic and Simon Law were
elected  directors  of  the  Company,  as  follows:


<TABLE>
<CAPTION>


                                                     ABSTENTIONS AND
                     VOTES FOR     VOTES WITHHELD    BROKER NON-VOTES
                     ---------     --------------    ----------------
<S>                  <C>           <C>               <C>
Michael J. Smith     15,565,337               -                 -
James Carter         15,565,337               -                 -
Slobodan Andjic      15,565,337               -                 -
Simon Law            15,565,337               -                 -


</TABLE>


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(A)     EXHIBITS

        None.

(B)     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:  February  13,  2002


                              EURO  TRADE  &  FORFAITING,  INC.

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