Azerbaijan, Baku, April 27 / Trend I. Khalilova /
Asian Development Bank (ADB) signed the agreement to expand trade finance with five Azerbaijani banks April 28, the ADB's Baku Office said. Leading expert on investing in the ADB private sector department, Stephen Blaik, will pay one-day-visit to Baku to sign the agreement.
"ADB is ready to continue cooperation with Access Bank, Azerigazbank, Bank of Baku, DemirBank and Bank Respublika within the program promoting trade finance (TFFP)", the representation said.
The agreements were signed with four Azerbaijani banks - Access Bank, AGBank, Bank of Baku and Bank Respublika during the period from 2006 to 2008 under the TFFP.
Funding worth $ 10 million was opened for them.
The representation did not tell about the volumes to increase funding.
ADB's officials on private sector made a visit to Azerbaijan, Mongolia and Uzbekistan to discuss the possibilities of expanding its program to promote trade finance (TFFP) for Central Asia in October 2009.
ADB's program worth $1 billion envisages funding and guarantees to international and developing banks of member-countries to maintain trade in developing countries. As the access to credit for companies in developing countries, which they need for the development of export and import, was unavailable for a long time, it restricted the growth of new industries, and in general, economic growth.
During the visit, the Asian Development Bank announced plans to increase the number of participants among Azerbaijani banks in Trade Finance Program.
ADB has begun to implement TFFP in 2004. It expanded it to the current amount March 31, 2009, in response to the demand for support in trade financing. TFFP portfolio may be extended. The time of its execution has been delayed. The program can provide up to $15 billion in support for trade finance by the end of 2013.
An increasing number of Asian and international banks participating in the program, according to the expectations of the Asian Development Bank, will continue to increase during 2010.