ADB to support trade

KATHMANDU: Asian Development Bank (ADB) will facilitate Nepali trade abroad through Trade Financing Facilitating Programme (TFFP). ADB and eight Nepali commercial banks — Bank of Kathmandu, Everest Bank, Himalayan Bank, Kumari Bank, Nabil Bank, Nepal SBI Bank, Nepal Industrial and Commercial Bank and Nepal Investment Bank — signed the agreement here today.

“Boosting trade is critical to helping Nepal overcome the current global crisis that has hurt export and may slow down growth in remittance,” said Barry Hitchcock, ADB’s country director for Nepal. Increased trade would also lead to crucial job creation and reduced poverty, he said.

The agreement is part of the TFFP programme which guarantees finance in export and import covering 100 per cent risk. Exporters and importers in least developed countries can avail of the service to expand their respective markets.

On March 31, ADB allocated Rs 1 billion for it as a revolving fund, Steve Beck, head of TFFP said. “The actual value of the fund will be Rs 3 billion as it revolves every 90 days,” he said. Meanwhile, Philip Erquiaga, director general of Private Sector Operation Department hoped TFFP would help build partnership between Nepali banks and international banks.