Summary Trade Finance Program (TFP) turnover stood at $11.27 billion from January 2009 to September 2012.
The turnover has been termed as key to the Asian region s economic growth and jobs creation.
According to the Trade Finance Program head Steven Beck, TFP seeks to fill private sector market gaps for trade finance. This is done by providing guarantees and loans to support trade, focusing on the most challenging markets where the gaps for trade finance are proportionally largest.
Steven Beck said in addition to filling market gaps, our aim was to promote more private sector support for trade finance in challenging markets to the point when our work will eventually become redundant and the TFP may no longer be required.
He said it has received very positive response and has won four industry awards. The program charges market rates; it s profitable and focuses on the most challenging markets.
The TFP has been growing by more than 30 per cent in the first eight months of 2012 compared to the same time last year, and we expect to do well over 3,000 transactions within this year. For 2012, we anticipate supporting approximately $4 billion in trade, which is up from last year s $3.5 billion.
He further added that TFP s support for trade transactions translates into real economic growth and jobs, which is important, especially in an environment where growth has been anemic and job creation has declined and/or is not keeping pace with growing numbers of people wanting to join the work force.
The program supports many small and medium-sized enterprises (SMEs). About half of the portfolio supports intra-region trade, while around 40 per cent of the portfolio’s transactions support trade among Asian Development Bank (ADB) members.
