MANILA, PHILIPPINES – Two banks in the Kyrgyz Republic have signed trade finance agreements with the Asian Development Bank (ADB) in order to help local companies conduct more international trade and become more integrated into regional and global business networks.
Kyrgyz Investment & Credit Bank CJSC and RSK Bank OJSC (RSK) now join over 200 partner banks in the Asia-Pacific region under the ADB’s Trade Finance Program (TFP).
ADB’s TFP fills market gaps for trade finance by providing guarantees and loans through partner banks. The TFP focuses its support on the more challenging markets, where market gaps for trade finance are proportionally largest. As such, TFP does not assume risk in the People’s Republic of China, India, Thailand and other relatively developed markets.
TFP has been rolled out to 18 ADB developing member countries with its most active beneficiaries based in Bangladesh, Pakistan, Viet Nam, Sri Lanka and Nepal. TFP is targeting expansion to Myanmar, Papua New Guinea, Fiji, Vanuatu, and Timor Leste next year.
"We are pleased to expand TFP into the Kyrgyz Republic where we are confident the program will support economic growth and job creation by supporting trade,” said Steven Beck, head of trade finance at ADB.
The TFP has supported over $3.5 billion in trade in 2011 alone. TFP volumes have grown over 30% in the first eight months of 2012 compared to the same period last year. Over 40% of TFP’s portfolio supports trade between ADB’s developing member countries.
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.