The Asian Development Bank (ADB) has expanded its trade finance facilitation program (TFFP) in Bangladesh, by signing 12 more agreements under the program.
The agreements with Bank Asia, BASIC Bank, Dhaka Bank, Dutch Bangla Bank, Eastern Bank, Export Import Bank of Bangladesh, National Bank, Premier Bank, Prime Bank, Southeast Bank, Standard Bank, and United Commercial Bank would give the banks an additional room to offer trade finance support to importers and exporters in Bangladesh.
In addition to providing the finance, the program links banks and firms in developing economies into global trading and banking networks. This is likely to build relationships and spur knowledge sharing among banks and their clients in the longer term.
Paul Heytens, country director for Bangladesh resident mission at ADB, said: “Just as in other developing economies, some firms in Bangladesh, particularly smaller companies, find it difficult to get hold of the trade finance they need to buy key components and final goods from overseas or to ensure timely payment for products they are selling abroad.”
Philip Erquiaga, director general of private sector operations department that manages the trade finance program at ADB, said: “In our increasingly globalized world, it’s essential that banks and companies are able to fully participate in the gradual recovery of the world economy. By bolstering trade, jobs are created and family incomes increase, reducing poverty and directing spending into the local and global economies.”
