ADB Strengthens Trade Finance Capacity in Central Asia Through Bank Twinning
YEREVAN, ARMENIA: The Asian Development Bank’s (ADB) Trade Finance Program (TFP) held its second TFP Bank Twinning program in Central Asia between Ameriabank from Armenia and Hamkorbank from Uzbekistan.
The TFP Bank Twinning leverages the expertise and strength of TFP’s more advanced partner bank to train its twin bank by transferring relevant trade finance operations knowledge. As one of the capacity building instruments of ADB’s TFP, this initiative provides more tailor-fit institutional development support to trade finance banks. It is also expected to forge closer regional business links, leading to increased intra-regional trade and cooperation in developing Asia.
TBC Bank of Georgia and Citibank hosted and trained Bank Eskhata from Tajikistan during the pilot launch of the TFP Bank Twinning in November 2017.
“ADB aims to provide a sustainable avenue in reinforcing the capacity-building benefits of its Bank Twinning program, especially for Hamkorbank. Both banks are TFP’s important partners and we hope that this opportunity will increase the trade finance operations of Hamkorbank and support Ameriabank’s exploration of new trade finance opportunities,” said TFP Relationship Manager at ADB Ms. Nana Khurodze.
ADB’s TFP has supported over $116.5 million in trade through 384 transactions in Armenia since 2012, 51% of which have been small and medium-sized enterprises-related (SMEs) deals. Meanwhile, TFP has supported over $1.3 billion in trade through 474 transactions in Uzbekistan since 2010, with 65% targeting SMEs. In 2017, ADB’s TFP has supported over $1.6 billion in trade through 571 transactions in Central Asian countries, 75% of which have been SME-related deals.
Ameriabank, the first TFP partner bank in Armenia to use the revolving credit facility, has since successfully implemented many trade finance transactions of strategic importance to the Armenian economy. Using its large banking network and close relations with major international financial institutions, coupled with its flexible and innovative approach to trade finance transactions, Ameriabank offers its customers tailored trade finance solutions designed to service their best interests.
Hamkorbank is the largest privately-owned bank located outside Tashkent and is the market leader in remittances in Uzbekistan. Hamkorbank offers a wide array of banking services with SMEs being 53% of its clientele.
“We welcome ADB’s Bank Twinning initiative, the aim of which is to support and aid the development of trade finance and expansion of intra-regional banking relations. We are delighted with the opportunity to share our long-standing experience and knowledge with colleagues from Hamkorbank,” said Ameriabank CJSC’s Head of Trade Finance Mr. Suren Kocharyan.
“For us, ADB has always been known not only as a financial but also as a strategic partner. We have always welcomed its initiatives for further support and collaboration among its partner banks. This is certainly a unique experience for Hamkorbank to share hands-on experience and seek ways of potential partnership with Ameriabank,” said Hamkorbank CEO Mr. Jasur Hasanov.
Backed by ADB’s AAA credit rating, TFP 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. TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and fraud prevention.
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 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.
Source: adb.org
