In a move to enhance trade finance in Cambodia, particularly for the micro, small, and medium-sized enterprises (MSMEs), the Foreign Trade Bank of Cambodia (FTB) has joined forces with the Asian Development Bank’s (ADB) Trade and Supply Chain Finance Program (TSCFP). This partnership is aimed at bolstering the Cambodian economy by supporting corporate and MSME clients through trade finance instruments backed by TSCFP’s credit guarantees.

The collaboration between FTB and ADB is expected to attract more international banks to the Cambodian market, thereby facilitating increased engagement in regional and international trade and commerce, ADB said in a press release.

The agreement was signed by ADB country director for Cambodia, Jyotsana Varma, and FTB’s chief executive officer, Dith Sochal, at ADB’s Cambodia Resident Mission in Phnom Penh.

ADB, being one of the largest sources of official development assistance for Cambodia, has an average annual lending of $363.28 million spanning from 2019 to 2023. This new initiative with FTB is anticipated to further strengthen Cambodia's position in the global trade arena.

To ensure the effectiveness of this partnership, FTB has proactively engaged with TSCFP to enhance its capabilities in trade facilitation. Through this collaboration, FTB has benefited from capacity building in various areas including report preparation, adoption of good practices, implementation of innovative strategies, development of training modules, and performance measurement.

“The agreement is part of ADB’s private sector development initiative to promote the sector’s participation in Cambodia’s economic diversification,” said Jyotsana Varma. “It will fill market gaps by providing financing through partner banks to support trade and MSMEs, representing about 99 per cent of all enterprises in Cambodia.”

Fibre2Fashion News Desk (DP)

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