ADB expands trade finance program 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 U.S. dollars from 518 million U.S. dollars 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 the bank 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 will increase liquidity, help boost businesses, raise exports and imports, increase jobs, and contribute to economic growth and development," said ADB Country Director in Bangladesh Manmohan Parkash.
Noting Bangladesh is one of the most active TFP countries, Parkash said, "The program has so far supported 814.6 million U.S. dollars in trade, with 70.7 percent 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 U.S. dollars can roll and support over 1 billion U.S. dollars in Bangladesh trade year over year."
"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," added Parkash.