OREANDA-NEWS. The Government of Myanmar and the Asian Development Bank (ADB) signed a framework agreement today that will allow ADB to expand its Trade Finance Program (TFP) into Myanmar. 

The agreement was signed by Deputy Finance Minister Dr. Maung Maung Thein, and James Nugent, Director General of ADB's Southeast Asia Department.

"The Myanmar Government welcomes ADB's Trade Finance Program into the country, as it enhances the capacity of partner banks to provide trade finance to Myanmar’s importing and exporting clients," Dr. Maung Maung Thein said.

The TFP aims to boost international trade by supporting the extension of trade finance. Under the TFP, ADB will guarantee trade finance instruments, such as letters of credit, issued by Myanmar banks. ADB will also provide credit facilities and technical assistance to partner banks.

"Trade finance promotes trade and investment, and assists domestic Myanmar businesses to enter and compete in international markets," said Mr. Nugent. "ADB is proud to be associated with Myanmar's efforts to improve its business environment.” 

The TFP will also help banks in Myanmar forge new relationships with international banks, enhancing local banks’ ability to attract new clients and strengthening their capacity to use new trade finance tools and instruments. 

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.  In 2014, ADB assistance totaled \\$22.9 billion, including cofinancing of \\$9.2 billion.