COVID-19 Response: ADB Trade and Supply Chain Finance
Trade has never been more critical for economic growth, jobs, and to ensure medical equipment, food and other vital goods get to where they are needed. ADB boosted its capacity to support trade and supply chains with more money and flexibility for its $2.4 billion Trade and Supply Chain Finance Programs.
The ADB's Trade and Supply Chain Finance Programs are excellent crisis response vehicles, with an extensive global network of 200 partner financial institutions through which support can be channeled quickly and efficiently.
Highlights of the Trade and Supply Chain Finance Programs’ response to date:
1,215 transactions valued at $818 million ($227 million of which was co-financed) in the 8 weeks since April 1. Highlights include:
- 48 medical-supply transactions including test kits, medical equipment and other goods worth $30 million in Bangladesh, Pakistan, Sri Lanka, Uzbekistan and Viet Nam.
- 269 food security/agriculture-related transactions valued at $237 million in Armenia, Bangladesh, Mongolia, Nepal, Pakistan, Samoa, Sri Lanka, and Viet Nam.
- New TFP partnerships: 3 new bank partners in Papua New Guinea and Uzbekistan and one new loan agreement in Mongolia.
SCFP supported 19 medical/pharma transactions valued at $5.5 million ($2.73 million of which was co-financed) over the same period.
In the pipeline:
- 3 medical supply chains worth $130 million, and a transaction in Indonesia for the manufacturing of personal protective equipment valued at $10 million.
- 2 food security supply chains valued at $40 million in India and PRC to close by end-June
TFP/SCFP knowledge products include:
- Webinar for banks on how to digitize trade operations How to Digitize Trade Operations, critical to making global trade and supply chains more secure took place 19 May with 300 people attending.
- End-to-end mapping of the entire supply chain for seven critical pandemic-fighting goods, such as ventilators and N95 masks released May 28. Maps help banks, investors and government tensure companies have no bottlenecks and financial support is there to ramp up supply. They can use the resource to help identify/address bottlenecks to ramp up supplies quickly.
- Weekly call with global trade finance banks to understand the rapidly changing market and to coordinate actions. Frequent contact with partner banks in DMCs
- Expanding online trainings and courses to banks on anti-money laundering and to underpin support for companies in trade and supply chains.