Taiwanese exporters of agricultural products look set to benefit from improved letter of credit (L/C) availability from the Agricultural Bank of Taiwan (ABT).

The bank, which is the only financial institution in the country dedicated to serving Taiwan's agricultural sector, has recently set up an international banking department to help the country's farmers sell their products overseas.

One-stop banking

Once the international banking department begins operations, it will provide agricultural businesses with one-stop banking services, including L/C issuance and loans denominated in foreign currencies according to ABT chairman, Chen Chao-hui.

Speaking at the department's opening ceremony he said the local agricultural sector needs more financial support at a time when many farmers are seeking to market their products abroad.

Export boost

According to Chen, Taiwan exported US$5.2 billion and imported US$15.5 billion of agricultural products in 2014, and concluded that the country needs an improved ratio of exports compared with imports. This, the chairman said, indicated the local agricultural sector's need for ABT's foreign exchange services.

The Taipei-based bank with branches also in Taichung and Kaohsiung was established in 2005, with the government holding a 44.5 per cent stake in the bank and farmers' and fishermen's associations holding the remaining 55.5 per cent stake.

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