The importance of short-term trade finance in achieving the Global Sustainable Development Goals (SDGs) is explicitly recognised in the Addis Ababa Action Agenda on Financing for Development. Yet, ADB''s Trade Finance Gaps Growth and Jobs survey of 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 Trade Finance Program (TFP) and this related technical assistance are focused on reducing market gaps for trade finance. TFP closes market gaps for trade finance by providing guarantees and loans to partner banks to support trade. In 2017 TFP supported 3,500 transactions valued at $4.5 billion. Over 85% of TFP's transactions support SMEs. In addition to doing transactions, TFP provides capacity building (technical assistance, training, seminars, work shops), through this TA, to partner banks, which contributes to closing gaps.
| Project Name | Due Diligence and Capacity Development of Trade Finance Program Banks | ||||
| Project Number | 37909-025 | ||||
| Borrower/Company | |||||
| Country | Regional |
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| Location | Regional | ||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth Regional integration |
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| Drivers of Change | Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector |
Finance / Trade finance Industry and trade / Industry and trade sector development |
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| Gender Equity and Mainstreaming | Some gender elements | ||||
| Responsible ADB Department | Private Sector Operations Department | ||||
| Responsible ADB Division | Private Sector Financial Institutions Division | ||||
| Responsible ADB Officer | Beck, Steven | ||||
| Project Sponsor(s) | |||||
| Objectives and Scope | The importance of short-term trade finance in achieving the Global Sustainable Development Goals (SDGs) is explicitly recognised in the Addis Ababa Action Agenda on Financing for Development. Yet, ADB''s Trade Finance Gaps Growth and Jobs survey of 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 Trade Finance Program (TFP) and this related technical assistance are focused on reducing market gaps for trade finance. TFP closes market gaps for trade finance by providing guarantees and loans to partner banks to support trade. In 2017 TFP supported 3,500 transactions valued at $4.5 billion. Over 85% of TFP's transactions support SMEs. In addition to doing transactions, TFP provides capacity building (technical assistance, training, seminars, work shops), through this TA, to partner banks, which contributes to closing gaps. More information can be found at 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 | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| Business Opportunities | |
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| Consulting Services | Due Diligence and Financial Analysis Experts Firm; resource persons for seminars |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | - |
| Credit Committee Meeting | - |
| Approval | - |
| Last PDS Update | 28 Sep 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.
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