The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and Cooperative Bank (CB Bank) today signed an agreement that enables the TFP to provide guarantees of up to $12 million per annum in support of the trade finance operations of CB Bank. This marks the first such ADB TFP facility to assist trade finance capacity for a local bank in Myanmar according to an ADB statement on 6 October.
“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.”
ADB’s TFP guarantees will help banks in the US, Europe, Singapore, Thailand, People’s Republic of 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.
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.
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