The Asian Development Bank's (ADB) Trade Finance Program (TFP) and Dutch-Bangla Bank Limited (DBBL) on Thursday signed an agreement to provide $10 million in loans annually to support trade in Bangladesh.
ADB's TFP has been operating in Bangladesh since 2004 and currently works with 13 local partner banks. To date, the program has conducted 1,983 transactions, supporting almost $3.1 billion in trade in Bangladesh and benefiting 966 SMEs in a wide range of sectors including food and agricultural goods, commodities and industrial machineries, and capital goods, reports BSS.
"We are delighted to strengthen our partnership with Dutch-Bangla by signing this revolving credit facility," said Santosh Pokharel, TFP's Relationship Manager for Bangladesh, according to an ADB press release.
"The agreement provides additional funding for DBBL to support trade and we anticipate that many small and medium-sized enterprises (SMEs) will benefit," added Santosh.
CEO of DBBL Abul Kashem Md. Shirin said, "DBBL has been a partner bank of TFP since 2009 and we are grateful for ADB's continued trust and assistance in promoting trade development in Bangladesh".
In September 2017, DBBL was presented with TFP's Leading Partner Bank in Bangladesh Award for the third consecutive year.
DBBL, established in 1995 as a joint venture between the Netherland's Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) and the local businesses of Bangladesh, is one of the leading private commercial banks in Bangladesh with a focus in project, SME, and trade financing.
TFP, backed by ADB's AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.
Since 2009, ADB's TFP has supported more than 12,000 small and medium-sized businesses across developing Asia-through over 16,600 transactions valued at over $30 billion-in sectors ranging from commodities and capital goods, to medical supplies and consumer goods.
In 2017, TFP supported approximately $4.5 billion in trade through 3,505 transactions.