Asian Development Bank (ADB) and Germany-based Commerzbank have signed a risk-sharing agreement to support the international trade in Asia.
Under the agreement, Commerzbank and ADB will share risks to support increased trade in Asia, including Bangladesh, Indonesia, Kyrgyz Republic, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Tajikistan, Viet Nam, and other markets. The risk participation agreement is part of ADB’s $1bn Trade Finance Facilitation Program (TFFP).
Philip Erquiaga, director general of private sector operations department at ADB, said: “ADB is very pleased to have a risk-sharing partnership with Commerzbank. Partnerships such as those established through the trade finance facilitation program are dramatically increasing the flow of trade finance. If companies can get the trade finance they need, they can expand their business and take on more workers, boosting individual incomes. Those workers will then become consumers themselves, boosting global economic growth.”
Christof Gabriel Maetze, divisional board member and global head of financial institutions at Commerzbank, said: “Commerzbank is delighted to participate in this partnership with ADB. We are convinced that this partnership will further strengthen our trade finance activities in prospering Asia, which we consider as one of our key markets. It will also help consolidate our global position as one of the leading banks in trade finance.”