We’re thrilled to welcome Banco Patagonia Argentina into ADB’s Trade Finance Program (TFP). As a participating bank, TFP will provide guarantees to Banco Patagonia covering payment risk from Asian banks backing trade (import and export) transactions.
In other words, we’ll work with the Argentine Bank—and the handful of other South American banks already signed up—to support South-South trade between Asia and Latin America. Bank-to-bank relationships underpin a lot of world trade.
Banks act as intermediaries in trade between exporters and importers, especially when the parties don’t know each other well and live in distant emerging markets.
Representing their respective clients (importer and exporter), banks transmit funds and documents between each other and provide bank-to-bank guarantees covering performance risk, payment and country risks... — blogs.adb.org/blog