CB to Receive $12 Million from ADB in Trade Financing
ADB Myanmar
ADB and CB officials at the signing ceremony.
The Asian Development Bank’s (ADB) Trade Finance Program (TFP) has signed a deal with Cooperative Bank (CB) to provide guarantees of up to $12 million per annum in support of the trade finance operations of CB.
This marks the first such ADB TFP facility to assist trade finance capacity for a local bank in Myanmar.
“Under this agreement, ADB and CB Bank are partnering to support exporting and importing companies in Myanmar, including small and medium-sized enterprises,” said Steven Beck, ADB’s head of trade finance.
“This agreement will help develop the trade sector and create jobs.”
The Manila-based lender said its TFP guarantees will help banks in the US, Europe, Singapore, Thailand, China and elsewhere work with Myanmar banks to support more international trade with Myanmar companies.
“The main instrument of trade finance, the letter of credit, can help develop new trading networks by using the banking system and globally accepted customs and practices to help establish new trading networks,” ADB said in a statement.
It said the TFP’s loans and guarantees will be complemented by workshops and seminars to increase knowledge and expertise about trade finance which will result in more support to exporting and importing companies in the country.
Backed by ADB’s AAA credit rating, the TFP provides guarantees and loans to over 200 partner banks to support trade. Since 2009, the TFP has supported more than 6,000 small and medium-sized enterprises in about 10,000 transactions valued at over $20 billion, according to ADB.
To increase its capacity to support transactions, and in an effort to draw the private sector more into developing Asia, TFP shares and distributes risk with international financial institutions. Swiss Re insurance and International Enterprise (IE) Singapore, the island nation’s state trade promotion body, will be the first of those partners to support the TFP in Myanmar.
From:Myanmar Business Today
