May 03, 2010 (LBO) – Sri Lanka is one of the countries included in a trade finance deal between the Asian Development Bank and Germany’s Commerzbank to share risks to support increased trade in developing Asia. According to an ADB statement, the Risk Participation Agreement signed on the sidelines of the bank’s 43rd annual meeting in Tashkent, Uzbekistan is part of ADB’s billion-dollar TradeFinance Facilitation Program (TFFP).
Under the agreement, Commerzbank, the second-largest bank in Germany, and ADB will share risks to support increased trade in developing Asia.
The countries include Bangladesh, Indonesia, Kyrgyz Republic, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Tajikistan, Viet Nam, and other markets.
Transactions under the deal can range from short-term letters of credit to maturities of up to three years.
“Companies, particularly small- and medium-sized enterprises, in developing nations can have difficulties in accessing funds that they need to support imports or exports of critical components or final goods,” the ADB said.
“Partnerships such as those established through the Trade Finance Facilitation Program are dramatically increasing the flow of trade fin