|ADB and Citibank partner to upport importers and exporters in developing markets. — VNS Photo|Viet Nam News
HÀ NỘI — The Asian Development Bank (ADB), through its Trade Finance Programme (TFP), has signed an agreement with Citibank to further support trade across Asia.
With the agreement, ADB and Citibank intend to collaborate in financing up to US$100m or more in trade to support importers and exporters in developing markets. Citibank and the ADB can then share risks on a funded basis on underlying trade finance transactions.
Citibank has been working with the ADB since 2009 in its trade finance programme to support trade in developing Asia.
“This continuing partnership with Citibank hopes to address the funded trade finance needs of SMEs, to stir more growth and jobs that underpin more stable economies in Asia,” said Steven Beck, head of Trade and Supply Chain Finance at ADB. “We are pleased with the renewed agreement with Citibank to address the increasing trade finance gap.”
“As one of the world’s leading global trade banks, Citibank is pleased to support this initiative to help fund trade flows with multinationals, as well as SMEs in and out of developing markets,” said John Ahearn, Global Trade Head, Citi Treasury and Trade Solutions. “By introducing this new product and continuing our collaboration with ADB, we look forward to furthering our mission of enabling growth and economic progress.”
Backed by ADB’s AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.
Since 2009, ADB’s TFP has supported more than 12,000 small- and medium-sized businesses across developing Asia — through over 16,600 transactions valued at over $30 billion — in sectors ranging from commodities and capital goods to medical supplies and consumer goods. In 2017, TFP supported approximately $4.5 billion in trade through 3,505 transactions. — VNS