MANILA, PHILIPPINES (16 February 2017)
The Asian Development Bank’s (ADB) Trade Finance Program (TFP) has issued its first guarantee for Myanmar, supporting the import of fertilizers from Italy. The guarantee was issued in favor of Banca Popolare di Sondrio in Italy in respect of the payment obligation of United Amara Bank (UAB), one of TFP’s local partner banks in Myanmar.
The customer in Myanmar is an agricultural produce trader that imports fertilizers for sale to local farmers. The exporter is a multinational firm that specializes in fertilizer and nutritional agricultural products. The trade will result in increased profit for the farm producers and traders, as well as healthy agricultural products that serve the local market in Myanmar and the neighboring countries where the goods are exported.
“Myanmar is an exciting market with great potential,” said Janet Hyde, TFP Relationship Manager for Myanmar. “We’re pleased to work hand-in-hand with UAB and our international partner banks to harness Myanmar’s trade growth potential and especially to help SMEs in developing member countries. Trade growth creates new jobs and increases incomes, and is one of TFP’s main objectives.”
ADB’s guarantee support markets in developing Asia that are not well served by the international financial community. It also establishes new or increases existing bank credit lines, supporting trade that would not otherwise happen.
"We are grateful that through ADB's TFP, we were able to connect our customer in Myanmar with the supplier in Italy. The TFP not only connected the banks but also bridged the transaction with a guarantee,” said UAB CEO Thein Lwin. “We are delighted to begin this journey with TFP through this small step and we look forward to taking many more."
The ADB TFP, backed by ADB's AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.
Source: Asian Development Bank
Illustration Photo: Lettuce field in Myanmar (credits: Carsten ten Brink / Flickr CC BY-NC-ND 2.0)