Azerbaijan's TuranBank last week announced it had become the latest bank to enter into an agreement to finance international trade operations with the Asian Development Bank's (ADB's) Trade and Supply Chain Financing Programme (TSCFP).

The TSCFP has been providing loans and guarantees on letters of credit (L/Cs), guarantees, discounting, trade loans and other instruments to an increasing number of partner banks over recent years to fill enlarged market gaps left by a retrenching banking sector.

Azerbaijani food chains

The new TSCFP agreement with TuranBank aims to allow the country to expand import-export operations and support the Azerbaijani bank's customers' trade operations.

"We are happy to see that TSCFP is building a relationship with TuranBank in Azerbaijan. ADB is committed to enabling global trade and supporting jobs and economic development. This partnership is critical for supply chains and food security in Azerbaijan," according to Candice McDeigan, ADB's country director for Azerbaijan.

ADB and trade financing

The ADB's trade finance operations continue to grow, supporting billions of dollars of trade throughout the region, which in turn helps create sustainable jobs and economic growth in Asia's developing countries.

In 2023, TSCFP's trade finance business supported 21,416 transactions worth a total of US$4.7 billion, including US$2.9 billion in co-financing.

TSCFP's work helped 6,900 small- and medium-sized enterprises and enabled 1,300 transactions between ADB developing member countries.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.