Myanmar and the Asian Development Bank (ADB) have signed a framework agreement that will allow ADB to expand its trade finance programme (TFP) into the country.

Under the agreement, ADB will guarantee trade finance instruments, such as letters of credit, issued by Myanmar banks. ADB will also provide credit facilities and technical assistance to partner banks, helping banks in Myanmar to forge new relationships with international banks.

“ADB is proud to be associated with Myanmar’s efforts to improve its business environment,” says James Nugent, director general of ADB’s Southeast Asia department.

“The Myanmar government welcomes ADB’s trade finance programme into the country, as it enhances the capacity of partner banks to provide trade finance to Myanmar’s importing and exporting clients,” comments Myanmar’s deputy finance minister Maung Maung Thein.