ADB Boosts Support for Trade Finance with $350 Million Additional Headroom

3 years ago tajikistannewsgazette.com Comments Off on ADB Boosts Support for Trade Finance with $350 Million Additional Headroom

MANILA, PHILIPPINES (11 June 2018) � The Asian Development Bank's (ADB) Board of Directors has approved $350 million in additional headroom to further expand the scope and impact of its Trade Finance Program (TFP), helping to close large market gaps for trade finance that impede growth and job creation.

Supporting more than 12,000 small and medium-sized enterprises (SMEs) in developing Asia since 2009, TFP helps reduce market gaps for trade finance by providing loans and guarantees to financial institutions to support trade activities in the region. The additional financing will increase TFP's limit to $1.35 billion, keeping up with the increasing market demand for trade finance from the program, which grew over 50% in 2017. TFP is able to support trade financing well above its limit over the course of a year�but not breaching the limit at any one point in time�by recycling transactions with short maturities and leveraging cofinancing.

The increased headroom approved today by ADB's Board of Directors will help us meet the huge surge we've seen in market demand for our trade finance products, said ADB's Head of Trade and Supply Chain Finance Mr. Steven Beck. It is an exciting time for the team, which is known for its excellent client services, including transaction processing in 24�48 hours.

Financial institutions in support of trade as well as SMEs play an important role in closing the global trade finance gap, which amounts to $1.5 trillion globally, 40% of which is coming from the Asia and Pacific region, according to ADB's latest Trade Finance Gap survey. Trade finance is also an important component for countries to achieve the Sustainable Development Goals, as identified by the United Nations' Addis Ababa Declaration on Financing for Development.

TFP has guaranteed or funded 5,583 transactions in 2016 and 2017 alone, valued at $7.6 billion, with cofinancing reaching $4.6 billion. The program's transaction growth remained robust in the first four months of 2018�comprised of 1,453 transactions valued at over $2 billion, $1.3 billion of which was cofinanced with the private sector. Mobilizing private sector resources is an important metric for ADB as it leverages resources and multiplies the bank's ability to reduce market gaps that impede growth and job creation in its developing member countries.

The additional financing to TFP will complement the $100 million in additional support approved by ADB's Board of Directors in March to extend and expand the scope of the bank's Supply Chain Finance Program, which helps SMEs access finance and boosts their contribution to the region's economic growth and development.

TFP currently operates in 21 ADB member countries, with the top five most active markets including Armenia, Bangladesh, Pakistan, Sri Lanka, and Viet Nam. Backed by ADB's AAA credit rating, it provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and anti-money laundering prevention.

For more information, visit the TFP website: http://www.adb.org/tfp

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members�48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.

Source: Asian Development Bank

Related Posts

Telephone conversation with President of Uzbekistan Shavkat Mirziyoyev

tajikistannewsgazette.com 4 years ago

DUSHANBE, 24.07.2017. /NIAT Khovar/. The Founder of Peace and National Unity � Leader of the Nation, President of the Republic of Tajikistan Emomali Rahmon had a telephone conversation with... Read More

ZIMBABWEANS HOPE MNANGAGWA’S CABINET WILL DELIVER POSITIVE RESULTS

tajikistannewsgazette.com 2 years ago
HARARE, Zimbabwe, Sept 8 (NNN-XINHUA) - Zimbabweans have welcomed the appointment of a 'diverse, dynamic and youthful' cabinet, as described by president Emmerson Mnangagwa, who unveiled the team to... Read More

Tajik Cops Fired, Demoted After Hassling Public Smoochers

tajikistannewsgazette.com 3 years ago
A Tajik police officer has been fired and his boss demoted after the officer stopped and questioned a young couple who were kissing on a Dushanbe street, the Interior... Read More

CIS Cultural Cooperation Council awarded Tajikistan’s figures

tajikistannewsgazette.com 4 years ago

A number of cultural figures of Tajikistan are awarded with diplomas of the Council for Cultural Cooperation of the CIS member states, the press center of the Ministry of... Read More

ADB Boosts Support for Trade Finance with $350 Million Additional Headroom

3 years ago tajikistannewsgazette.com Comments Off on ADB Boosts Support for Trade Finance with $350 Million Additional Headroom

MANILA, PHILIPPINES (11 June 2018) � The Asian Development Bank's (ADB) Board of Directors has approved $350 million in additional headroom to further expand the scope and impact of its Trade Finance Program (TFP), helping to close large market gaps for trade finance that impede growth and job creation.

Supporting more than 12,000 small and medium-sized enterprises (SMEs) in developing Asia since 2009, TFP helps reduce market gaps for trade finance by providing loans and guarantees to financial institutions to support trade activities in the region. The additional financing will increase TFP's limit to $1.35 billion, keeping up with the increasing market demand for trade finance from the program, which grew over 50% in 2017. TFP is able to support trade financing well above its limit over the course of a year�but not breaching the limit at any one point in time�by recycling transactions with short maturities and leveraging cofinancing.

The increased headroom approved today by ADB's Board of Directors will help us meet the huge surge we've seen in market demand for our trade finance products, said ADB's Head of Trade and Supply Chain Finance Mr. Steven Beck. It is an exciting time for the team, which is known for its excellent client services, including transaction processing in 24�48 hours.

Financial institutions in support of trade as well as SMEs play an important role in closing the global trade finance gap, which amounts to $1.5 trillion globally, 40% of which is coming from the Asia and Pacific region, according to ADB's latest Trade Finance Gap survey. Trade finance is also an important component for countries to achieve the Sustainable Development Goals, as identified by the United Nations' Addis Ababa Declaration on Financing for Development.

TFP has guaranteed or funded 5,583 transactions in 2016 and 2017 alone, valued at $7.6 billion, with cofinancing reaching $4.6 billion. The program's transaction growth remained robust in the first four months of 2018�comprised of 1,453 transactions valued at over $2 billion, $1.3 billion of which was cofinanced with the private sector. Mobilizing private sector resources is an important metric for ADB as it leverages resources and multiplies the bank's ability to reduce market gaps that impede growth and job creation in its developing member countries.

The additional financing to TFP will complement the $100 million in additional support approved by ADB's Board of Directors in March to extend and expand the scope of the bank's Supply Chain Finance Program, which helps SMEs access finance and boosts their contribution to the region's economic growth and development.

TFP currently operates in 21 ADB member countries, with the top five most active markets including Armenia, Bangladesh, Pakistan, Sri Lanka, and Viet Nam. Backed by ADB's AAA credit rating, it provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and anti-money laundering prevention.

For more information, visit the TFP website: http://www.adb.org/tfp

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members�48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.

Source: Asian Development Bank

Related Posts

Orphaned By IS: Tajik Grandfather Seeks Return Of 10-Year-Old Survivor

tajikistannewsgazette.com 3 years ago
They left Tajikistan as a family of six, but only one would live to tell the tale of how they lived -- and most of them died --... Read More

Foreign Minister Muhriddin Meets with US Secretary of State Pompeo

tajikistannewsgazette.com 12 months ago
DUSHANBE, 03.02.2020. (NIAT Khovar) Today, on the margins of the C5+1 ministerial meeting in Taskent, the Minister of Foreign Affairs of Tajikistan Sirojiddin Muhriddin met with the US Secretary... Read More

Tomato culture title “Tajik Teenage: Film, discussion and live music”

tajikistannewsgazette.com 2 years ago
On March 25 this year, the first cultural museum named after "Tajik evening: Film, discussion and live music" was held in cooperation with the European Bank for Reconstruction and... Read More

Session of the CIS Council of Heads of Government to be held virtually on November 6

Web Desk 3 months ago
A source within the Tajik government says the meeting participants are expected to discuss issues related to the plan of actions on implementation of the first stage (2021-2025) of... Read More