The TFFP helps Asian countries maintain, re-establish and enhance trade finance lines. It provides guarantees to confirming banks and revolving credits to issuing banks located in developing member countries, enhances banks’ abilities to offer importers and exporters access to financial services and works in partnership with the private sector to provide capacity, liquidity and stability to the trade finance system.
The Asian Development Bank (ADB) signed trade financing agreements with two Indonesian banks to help them provide support for local exporters and importers.
Bank Mandiri (Persero) Tbk and PT Bank Muamalat Indonesia are the first banks in the country to sign deals within the framework of the ADB Trade Finance Facilitation Program (TFFP).
Commenting on the agreements, James Nugent, Country Director of ADB’s Indonesia Resident Mission, said: “These agreements with ADB will make it easier for Indonesian banks to extend trade financing.
“Easier access to trade finance will help Indonesian companies at a time when external trade is gradually recovering from the effects of the global financial crisis”.