Dhaka Bank joins ADB’s trade and supply chain finance programme
Dhaka Bank Limited has recently signed an agreement with Asian Development Bank (ADB) to engage in the latter's Trade and Supply Chain Finance Programme (TSCFP) as a confirming bank to expand its trade facilities.
Emranul Huq, managing director of Dhaka Bank, Mohammad Abu Jafar, additional managing director, and Can Sutken, senior investment specialist of ADB's Private Sector Operations Department, signed the agreement on August 18, 2021, according to a press release.
As per the confirming bank agreement, the regional bank will provide Dhaka Bank with guarantees to cover all or part of the risks associated with Dhaka Bank's add confirmation and/or discounting of qualifying trade finance transactions issued by selected banks in ADB's developing member countries.
Adding payment confirmation to the letter of credit will secure the export receivables which will give comfort to the Bangladeshi exporters.
Thus, it will help to have a direct impact on the growth of the Bangladesh economy.
"Getting enlisted as a confirming bank with ADB is a momentous milestone for Dhaka Bank Limited. This agreement is going to further accentuate the long term relationship cherished by both the organisations. The exporters of Bangladesh will be highly benefitted as their export proceeds will be secured by Dhaka Bank's payment confirmation," said Huq.
"This is another important step in our support for trade in Bangladesh. This will help Dhaka Bank grow its business and boost trade by Bangladeshi companies, which will help grow the economy and drive employment," said Sutken.
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