ADB expands trade finance program to support Bangladesh private sector

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The Asian Development Bank (ADB) has expanded the Trade Finance Program (TFP) to aid private sector in Bangladesh by raising its financing limit to 755 million U.S. dollars from 518 million U.S. dollars towards 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 the lender in a statement on Tuesday.

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

Noting Bangladesh is among the most active TFP countries, Parkash said, "The program has up to now supported 814.6 million U.S. dollars in trade, with 70.7 percent co-financing by the private sector, over 1,367 transactions, by 31 December 2019."

"As trade transactions typically start and end within 180 days, the 755 million U.S. dollars can roll and support over 1 billion U.S. dollars in Bangladesh trade year over year."

"A substantial part of TFP's portfolio supports small and medium-sized enterprises (SMEs) and the expanded coverage of the extremely active program will lead to increased inclusive support to traders, including women, in Bangladesh," added Parkash. Enditem
Source: http://www.xinhuanet.com

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