The Asian Development Bank (ADB) has increased its funding limit from 518 million to 755 million by the end of the year to expand the Trade Finance Program (TFP) to support Bangladesh’s private sector.
TFP is working with 12 partner banks in Bangladesh to fill the market gap by raising private sector capital and providing guarantees and loans, the ADB said in a press release today.
ADB Country Director Manmohan Prakash said, “The adverse effects of COVID-19 on the economy, especially given the availability of credit to the private sector in Bangladesh, will increase TFP’s liquidity in Bangladesh, help boost business, increase imports and exports, increase jobs and boost economic growth.
Mentioning that Bangladesh is one of the most active countries in the implementation of TFP, Manmohan Prakash said, “This program has so far provided ৪14.6 million in trade assistance. Of this, 70.7% has been co-financed in the private sector till December 31, 2019 and 1,036 transactions have been made.
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He added, “As commercial transactions usually start and end within 180 days, with the assistance of US 755 million, there will be an opportunity for more than US 1 billion in annual transactions in Bangladesh.”
The ADB Country Director further said that a large portion of TFP in Bangladesh provides assistance to the Small and Medium Enterprises (SME) sector and the extended activities of this active program will provide additional support to entrepreneurs including women.
ADB works with more than 240 banks in 21 countries to provide financial support to companies in need of engaging in imports and exports in Asia’s most challenging markets.