Dhaka, Bangladesh (BBN)– The Asian Development Bank (ADB) has expanded the Trade Finance Program (TFP) to support private sector in Bangladesh by raising its financing limit to US$755 million from $518 million 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.
“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,” Manmohan Parkash, Country Director of the ADB, said in a statement on Tuesday.
Noting Bangladesh is one of the most active TFP countries, Mr. Parkash also said the program has so far supported $814.6 million in trade, with 70.7 per cent cofinancing 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 can roll and support over $1 billion in Bangladesh trade year over year,” he explained.
The TFP works with over 240 banks in 21 countries to provide companies with the financial support they need to engage in import and export activities in Asia’s most challenging markets.
In 2019, the TFP supported 4,832 transactions worth a total of $5.4 billion, including $3.5 billion in co-financing, and helped 4,069 small and medium-sized enterprises.