37909-014: REG: TRADE FINANCE FACILITATION PROGRAM (TFFP) | Asian Development Bank

Regional: REG: TRADE FINANCE FACILITATION PROGRAM (TFFP)

Nonsovereign (Private) Project | 37909-014 Status: Active
 
Project Name REG: TRADE FINANCE FACILITATION PROGRAM (TFFP)
Project Number 37909-014
Borrower/Company
Country Regional
Location Regional
Type or Modality of Assistance
2033 Guarantee Ordinary capital resources USD 1,000.00 million Committed
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Trade finance

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Beck, Steven
Project Sponsor(s)
Description REG: TRADE FINANCE FACILITATION PROGRAM (TFFP)
Objectives and Scope The Trade Finance Program (TFP) closes market gaps for trade finance by providing guarantees and loans to partner banks to support trade. Drawing the private sector into developing countries is important to closing gaps and TFP is the biggest mobilizer of private sector financing at ADB. In addition to doing transactions TFP provides a number of 'knowledge products' which contribute to closing financing gaps. More information can be found at www.adb.org/tfp.
Status of Development Objectives

(i) Total trade transactions supported 2009-2017: 16,607;

(ii) Intra-regional transactions 2009-2017: 12,654 (inclusive of 'Total trade' figure);

(iii) Bilateral trade transactions between DMCs supported 2009-2017: 3,809 (inclusive of 'Total trade' figure);

(iv) SME transactions 2009-2017: 12,055 (inclusive of 'Total trade');

(v) Total value of trade supported 2009-2017: $30 billion;

(vi) Cofinancing mobilized 2009-2017: $17.8 billion (inclusive of 'Total value' figure);

(vii) In-country seminars and/or training conducted 2012- 2017: 23;

(viii) TFP created the world's first default and loss statistics in trade finance - The Trade Finance Register - which is now managed by the International Chamber of Commerce;

(ix) For more information, please see www.adb.org/tfp

Status of Operation/Construction

- 40% growth in TFP in 2017 compared with the previous year

- 3,505 transactions in 2017

- $4.5 billion total value of trade supported in 2017

- $2.8 billion cofinancing mobilized in 2017 (inclusive of $4.5 billion total value figure above)

- Of TFP's 21 countries of operation, five most active are: Armenia, Bangladesh, Pakistan, Sri Lanka and Viet Nam.

- 2,822 SMEs supported in 2017

- TFP never had a default or loss.

- TFP was first to quantify global trade finance gap through its Trade Finance Gaps, Growth and Jobs survey.

- TFP's Gender Initiative looked at human resource policies at partner banks to recommend enhancements that would attract, retain and promote more women in banking. Many of the recommendations have been implemented.

- TFP provides on-line training in trade finance to partner banks, as well as numerous in-person trainings on risk management, anti-money laundering and safeguards.

- For more information please see www.adb.org/tfp

Linkage to Country/Regional Strategy

The importance of short-term finance to support global trade - known as _trade finance - is explicitly recognised in the Addis Ababa Action Agenda on Financing for Development (_Addis Agenda_) as an important means of implementation of the Sustainable Development Goals (SDGs). Yet, ADB''s Trade Finance Gaps Growth and Jobs survey launched in September 2017 confirmed a global trade finance gap of $1.5 trillion, and determined that 40% of this gap is in Asia and the Pacific, with 74% of rejected trade finance transactions coming from SMEs.

The program supports two pillars of ADB's operational focus cited in the Midterm Review of Strategy 2020: (i) poverty reduction and inclusive growth, and (ii) regional cooperation and integration.

Safeguard Categories
Environment
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects FI (treated as category C)
Involuntary Resettlement FI (treated as category C)
Indigenous Peoples FI (treated as category C)
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 24 Sep 2003
Credit Committee Meeting -
Approval -
PDS Creation Date 01 Sep 2006
Last PDS Update 28 Mar 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Trade Sector Finance Facilitation Program: Report on findings of ICC-ADB Register on Trade & Finance Consultants' Reports Sep 2010
Trade Finance Facilitation Program Loan Change in Scope, Amount, and Implementation Arrangements Mar 2009

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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