ADB expands trade finance to support Bangladesh private sector...

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ADB expands trade finance to support Bangladesh private sector

 Staff Correspondent daily-bangladesh.com

 Published: 04:15 PM, 2 June 2020  

ADB expands trade finance to support Bangladesh private sector

ADB expands trade finance to support Bangladesh private sector

The Asian Development Bank (ADB) has expanded the Trade Finance Program (TFP) to support private sector in Bangladesh by raising its financing limit to $755 million from $518 million at the end of last year.

The TFP works with 12 partner banks in Bangladesh to mobilize private sector capital and fill market gaps by providing guarantees and loans to support trade, said an ADB press release today.

“Given the impact of COVID-19 on the economy, particularly availability of credit for private sector in Bangladesh, enhancement of the TFP will increase liquidity, help boost businesses, raise exports and imports, increase jobs, and contribute to economic growth and development,” said ADB Country Director Manmohan Parkash.

Noting that Bangladesh is one of the most active TFP countries, Parkash said, “The program has so far supported $814.6 million in trade, with 70.7% co-financing by the private sector, over 1,367 transactions, as of 31 December 2019”.

“As trade transactions typically start and end within 180 days, the $755 million can roll and support over $1 billion in Bangladesh trade year over year,” he added.

The ADB country director also said a substantial portion of TFP’s portfolio supports small and medium-sized enterprises (SMEs) and the expanded coverage of the very active program will result in enhanced inclusive support to traders, including women, in Bangladesh.

The TFP works with over 240 banks in 21 countries to provide companies with the financial support they need to engage in import and export activities in Asia’s most challenging markets. In 2019, the TFP supported 4,832 transactions worth a total of $5.4 billion, including $3.5 billion in co-financing, and helped 4,069 small and medium-sized enterprises.

DailyBangladesh/SA