Myanmar's Cooperative Bank (CB Bank) has signed an agreement to participate in the Asian Development Bank's (ADB's) Trade Finance Programme (TFP).

The TFP is to provide guarantees of up to US$12 million per annum in support of letters of credit (L/Cs) and other trade finance operations of CB Bank.

Myanmar first

The agreement is the first such ADB TFP facility to assist trade finance capacity for a local bank in Myanmar.

It follows the signing earlier this year of a framework agreement between the government of Myanmar and the ADB allowing the bank to expand its substantially L/C-centred TFP into the country that has recently elected a partially democratic government after years of military rule (DC World News, 16 September 2015).

New facilities

Since signing up for the TFP, CB Bank has launched a range of new trade finance facilities.

These include post-shipment L/Cs, pre-shipment loans and invoice financing.

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