Uzbekistan, Tashkent, May 1 / Trend D. Azizov /
Today, the Asian Development Bank (ADB) and Commerzbank AG have signed an agreement on the allocation of risks to promote international trade in developing Asia, the ADB said.
The agreement was signed beyond the program of the 43-rd annual meeting of the ADB Board of Governors, currently being held in Tashkent, a press release said.
The agreement is a part of the program to promote trade finance, implemented by ADB worth $ 1 billion.
In accordance with the signed document, Commerzbank and the ADB will distribute risks to promote trade in developing Asia, particularly in countries such as Bangladesh, Indonesia, the Kyrgyz Republic, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Tajikistan, Vietnam and others.
Companies, mostly representing small and medium enterprises in developing countries, may have difficulty in accessing financial resources required for the import or export of key components and finished products.
"Developing of partnership with Commerzbank will significantly enhance the effectiveness of programs to promote trade finance", Director General of ADB's Private Sector Operations Philip Erquiaga said at the signing ceremony.
"If companies can get necessary trade financing, it will help to expand their business, create additional jobs and increase incomes of employees who, in their turn, will be consumers. It will lead to global economic growth", ADB representative said.
The program to facilitate trade financing program, launched by the ADB in 2004, provides access to financial resources through loans and guarantees to commercial banks in developing ADB member-countries through cooperation between international banks and banks in the ADB developing countries-members. Transactions are operations such as short-term letters of credit and letters of credit for up to three years.
Commerzbank is the second largest bank in Germany and one of the leading financial institutions in Europe. After the merger with Drezdnerbank in 2009, Commerzbank is a leading bank, both for physical entities and corporate clients. As a valuable business partner for export-oriented small and medium businesses, the bank has established correspondent relations with 6,000 banks in the world.
ADB with headquarters in Manila was established in 1966. The bank shareholders are 67 countries, of which 48 countries are in the Asia-Pacific region. In 2009, the ADB approved loans worth $ 16.1 billion as loans, grants, guarantees, trade finance facilitation program, investment in share capital, and technical assistance projects. The ADB has also mobilized resources for co-financing of $ 3.2 billion.