Dec 08, 2009 (LBO) – The Asian Development Bank (ADB) said it has signed trade finance agreements with three Sri Lankan banks that will help them provide loans and guarantees to exporters and importers. “Nevertheless, companies in emerging markets, particularly small and medium-sized firms, have typically faced difficulties in accessing enough credit to fill export orders or get the goods they need from overseas.”
It said the TFFP addresses these difficulties by working with international and local banks to provide the support they require to ensure their importing and exporting clients get the loans and guarantees they need to do business.
Under the one billion dollar TFFP, which began operating in 2004 and was expanded earlier this year, ADB provides finance and guarantees through international and developing member country banks to support trade deals in developing countries.
Since trade finance can roll over and as the program attracts private-sector support, the program can provide three billion dollars in finance every year, the ADB said. The state-owned Bank of Ceylon signed its first agreement under the ADB’s Trade Finance Facilitation Program (TFFP) program while the private DFC