ASTANA, KAZAKHSTAN – Two local banks in Kazakhstan today signed trade finance agreements with the Asian Development Bank (ADB) to boost their lending portfolios to domestic trading companies whose financing were hampered by a series of bank restructurings in the country.
ADB signed trade finance agreements with Bank CenterCredit JSC (BCC) and subsidiary of Sberbank JSC (SBK).
"Trade is an important vehicle for promoting economic growth and providing access to modern technology, know-how, and ideas. We are glad to support trade finance in Kazakhstan and believe the program will help expand businesses and create new jobs,” said Steven Beck, head of ADB’s Trade Finance Program (TFP).
The TFP fills market gaps by providing guarantees and loans for trade finance through over 200 partner banks. The TFP focuses its support on the more challenging markets, where market gaps are proportionally largest. As such, TFP does not assume risk in the People’s Republic of China, India and other relatively developed markets.
The TFP has been rolled out to 18 of ADB’s developing member countries with its most active being Bangladesh, Pakistan, Viet Nam, Sri Lanka, and Nepal. TFP is targeting expansion to Myanmar, Papua New Guinea, Fiji, Vanuatu, and Timor Leste next year.
The TFP supported over $3.5 billion in trade in 2011 alone. Its volumes have grown over 30% in the first eight months of 2012 as compared to the same period last year. Over 40% of TFP’s portfolio supports trade between its developing member countries, and in the first six months of 2012, TFP supported 591 small and medium-sized enterprises (SMEs).
The program supports a wide range of trade transactions, from commodities and capital goods to medical supplies and consumer goods.