BEIRUT- Lebanon's Bank Audi has signed a $75 million trade financing deal with the European Bank for Reconstruction and Development (EBRD) to facilitate foreign trade, it said in an emailed statement on Wednesday.

In November, Lebanon's largest lender signed a $100 million loan with the EBRD, a multilateral development bank, to support investment in environmental technology. 

Lending and economic activity has slowed in Lebanon this year as politicians failed to form a new government following May's general election, stalling prospects for reforms that could unlock pledged donor support.

Wednesday's deal is to support import and export activities of small and medium-sized businesses and trade within the southern and eastern Mediterranean region, Bank Audi said.

EBRD became a shareholder in Bank Audi in March. It is the third bank in Lebanon to join the EBRD's Trade Facilitation Programme, it said.

Lebanon has stagnant growth, the world's third-highest level of public debt as a proportion of economic activity, and what the International Monetary Fund has said are increasing vulnerabilities in its financial system.

(Reporting by Angus McDowall; editing by Jason Neely and Alexandra Hudson) ((angus.mcdowall@thomsonreuters.com; Reuters Messaging: angus.mcdowall.thomsonreuters.com@reuters.net))