logo
EN
РУ EN ЎЗ
  • Uzbekistan
  • Economy
  • Finance
  • Technologies
  • Markets
  • Culture
  • Sports
  • Tourism
EN
РУ EN ЎЗ

ADB, FMO of the NETHERLANDS to share risk on trade finance in Asia

ADB, FMO of the NETHERLANDS to share risk on trade finance in Asia

02/05/2010 13:35

Tashkent, Uzbekistan (UzDaily.com) -- The Asian Development Bank (ADB) today signed a risk distribution agreement with the Netherlands Development Finance Company (FMO), which will lead to greater and wider support for trade in ADB’s developing member countries.

The risk distribution agreement is part of ADB’s US$1 billion Trade Finance Facilitation Program (TFFP), which provides loans and guarantees through, and in conjunction with, international banks and ADB’s developing member country banks to support international trade transactions.

Since ADB will be able to share with FMO the risk it takes on its loans and guarantees, it will be able to offer more support through the TFFP. The agreement will allow FMO, for its part, to expand its trade finance portfolio in developing Asia.

Companies in most developing economies often have difficulty getting hold of financing to support the import or export of the key components or final products they need to conduct their own business. This holds back companies and, ultimately, means economies are unable to perform at their peak.

To counter this, ADB in 2004 launched the TFFP. Since then, demand for finance under the program has grown as the world – and notably Asia – recovers from the 2007-2008 global financial crisis. In 2009, loans and guarantees under the TFFP supported 443 trade transactions worth US$1.9 billion, a four-fold increase versus US$461 million in 2008.

"This risk distribution agreement will allow the Trade Finance Facilitation Program to further ramp up its support for trade in developing Asia," said Philip Erquiaga, Director General of ADB’s Private Sector Operations Department. "More trade means more jobs, and more jobs means fewer people struggling to feed, clothe or educate themselves and their families."

As well as paving the way for increased international trade, the TFFP also helps firms and banks in developing Asia develop relationships with trading partners and financial firms overseas that will reap rewards in the longer term.

"FMO is pleased to participate in this fast-increasing private sector program of ADB, an important partner for FMO in Asia. The program provides FMO abundant opportunities with the banks involved in this trade facility and increases FMO’s outreach in low-income countries across Asia," said Jurgen Rigterink, FMO’s Chief Investment Officer.

"We continue to see a gap between supply and demand of trade finance facilities in the region due to the crisis. It is our role as a development bank to stimulate private sector growth by providing access to finance which would otherwise not be available."

FMO is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of €4.6 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO’s mission is to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2009, it approved a total of US$16.1 billion in financing operations through loans, grants, guarantees, a trade finance facilitation program, equity investments, and technical assistance projects. ADB also mobilized cofinancing amounting to US$3.2 billion.

Related News

Asian Development Bank (ADB) President Haruhiko Kuroda congratulated President, Government and peoples of Uzbekistan with successful organization of the 43rd Annual Meeting of ADB Governors in Tashkent.

21/05/2010

Management of the Kapitalbank open joint stock commercial bank held several negotiations with various financial structures within the 43rd Annual Meeting of the Board of Governors of the Asian Development Bank (ADB).

05/05/2010

A delegation of more than a dozen US Government officials came to Tashkent to participate in the 43rd annual meeting of the Asian Development Bank (ADB), which funds billions of dollars each year in economic development projects in Asia such as building schools, roads, railways, and providing loans to small business people.

05/05/2010

The 43rd Annual Meeting of the Asian Development Bank (ADB) wrapped up its work in Tashkent on 4 May 2010. ADB President Haruhiko Kuroda expressed gratitude to the leadership of Uzbekistan for good preparation and organization of the ADB Forum in Tashkent, which assists to its fruitful and constructive work.

04/05/2010

The Asian Development Bank (ADB) President Haruhiko Kuroda and Kunio Mikuriya, Secretary General of the World Customs Organization (WCO), today signed a Memorandum of Understanding (MOU) to strengthen the strategic partnership between their two organizations to facilitate trade in Asia and the Pacific.

04/05/2010

Renewed private investor interest should help Asia and the Pacific build on its fast recovery from the global crisis, but investor interest across the region is likely to be uneven, a seminar audience heard today.

03/05/2010

Latest News

Foreign Minister of Uzbekistan attended the OSCE 30th Ministerial Council

01/12/2023Read more

Uzbek, Hungarian FMs consider development of relations

01/12/2023Read more

Foreign Minister of Uzbekistan meets with his German counterpart

01/12/2023Read more

Currency rates from 15/11/2023

$ 1 12289.98 +0.072%
€ 1 13169.94 +0.325%
₽ 1 134.50 +0.817%
Other currencies »
  • Ronaldo in Uzbekistan
  • Measures on Qoqand development
  • Uzbekistan in figures. 2009.
  • ADB’s 43rd Annual Meeting
  • Uzbekistan in figures. 1H 2010.
  • Art Week Style.uz 2010
  • Uzbekistan in figures. January-September 2010.
  • Uzbekistan in figures. 2010.
  • Uzbekistan in figures. 1Q 2011.
  • London 2012
  • Incheon-2014
  • Elections-2014
  • Reforming public finance management system
  • Rio-2016
  • Elections-2016
logo
  • Registration Certificate of Uzbekistan Press
  • and Information Agency No. 0601 from 28
  • October 2009.
  • Founder: DAILY MEDIA
  • Chief Editor: Umarov Anvar Abrardjanovich
  • Address: Yunusabad 12-27-73, Tashkent,
  • 100180, Uzbekistan

About us

  • About Us
  • Condition of Use
  • Privacy Policy
  • Gadgets
  • Advertisement

Social pages

  • Facebook

  • Twitter

  • Google+

  • Telegram

© 2007-2022 UzDaily. All rights reserved.
Registration Certificate of Uzbekistan Press and Information Agency No. 0601 from 28 October 2009.

18+