The government of Myanmar and the Asian Development Bank (ADB) have signed a framework agreement that will allow ADB to expand its Trade Finance Programme (TFP) into Myanmar.

The agreement was signed by Myanmar's deputy finance minister, Dr Maung Maung Thein, and director general of ADB's Southeast Asia Department, James Nugent.

Trade boost

"The Myanmar government welcomes ADB's Trade Finance Programme into the country, as it enhances the capacity of partner banks to provide trade finance to Myanmar's importing and exporting clients," the finance minister said.

The TFP aims to boost international trade by supporting the extension of trade finance.

L/C guarantee

Under the TFP, ADB will guarantee trade finance instruments, such as L/Cs, issued by Myanmar's banks.

ADB will also provide credit facilities and technical assistance to partner banks.

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.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.