Kathmandu, July 31: The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and Laxmi Bank Limited, a leading bank in Nepal, have signed an agreement to provide loans and support trade in the country.
ADB’s TFP has been operating in Nepal since 2009 and currently works with 2 local partner banks. Till date, the program has conducted more than 200 transactions in Nepal, supporting $82 million in trade, and benefiting more than 80 SMEs in a wide range of sectors including agricultural commodities, construction materials and machinery, solar panels, and textiles.
During the signing Laxmi Bank’s Chief Executive Officer, Ajaya Bikram, Shah said “Laxmi Bank is pleased to join ADB’s Trade Finance Program as the third member bank from Nepal after completion of on-site and off-site due diligence of our financials, asset quality, and operations. Laxmi Bank is already a major provider of trade finance services for Nepali SMEs, corporates, institutions, and infrastructure projects.”
“Access to this new facility will further strengthen our ability to conduct large value or complex international trade transactions. We believe this will directly benefit our clients by enhancing their acceptance in the international market especially at a time when the country is pursuing economic growth led by private sector investments in national priority sectors,” he added.
ADB Investment Specialist and Relationship Manager for Nepal Ms. Janet Hydealso said, “We are delighted that Laxmi Bank has joined the Trade Finance Program as the latest issuing bank member at a time of resurgent economic growth in Nepal,”“This new facility will assist with the country’s reconstruction efforts by supporting trade flows into the country, especially those involving small and medium-sized enterprises (SMEs).”
Backed by ADB’s AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia and the Pacific to engage in import and export activities.
