Just in:  

You are here: Home»Top News»Front Top News»ADB creating Supply Chain Finance Program to help small businesses

ADB creating Supply Chain Finance Program to help small businesses

adb 400ISLAMABAD: The Asian Development Bank (ADB) is creating a Supply Chain Finance Program (SCFP) that will bring over $1 billion to help cash- strapped small and medium-sized enterprises in Asia and the Pacific access capital that can help them grow.


The ADB is supplying up to $200 million for the SCFP, which will revolve at least twice a year because of the short-term maturities involved in supply chains, said ADB press statement received here.


Furthermore, the $200 million is estimated to attract an additional $300 million, at least, in private sector investment through the SCFP, it added.


"Many small companies currently face lags of 30 to 180 days between the time they ship goods and when payments are received, leaving them short of cash flow that forces some to slow production or delay the processing of other contracts," said Philip Erquiaga, Director General of ADB's Private Sector Operations Department.


Philip added that this program would unlock financial resources caught in the supply chain and thereby improve companies' access to affordable working capital that helps support jobs and incomes.


The ongoing global economic downturn has exacerbated the challenges facing many companies, with buyers putting greater pressure on suppliers to extend their payment terms, and on distributors to shorten their payment terms.


The SCFP will improve suppliers' and distributors' access to cash flow within a supply chain, meaning that they will be able to expand operations and employ more people.


ADB, an AAA-rated multilateral development bank, has made substantial progress in supporting trade through the Trade Finance Program (TFP) which has an annual turnover of approximately $4 billion without any defaults and which focuses support for trade in the poorest developing Asian countries.


The program is limited to assuming bank risk for cross-border transactions, the statement said.


The new SCFP will complement the TFP by assuming non-bank commercial risk for both cross-border and domestic transactions within a supply chain.


It will provide affordable finance to many small and medium-sized enterprises, some of which may have traditionally not been considered bankable.


Copyright APP (Associated Press of Pakistan), 2012


Index Closing Chg%
Arrow DJIA 17,798.49 0.08
Arrow Nasdaq 5,127.52 0.22
Arrow S&P 2,090.11 0.06
Arrow FTSE 6,375.15 0.28
Arrow DAX 11,293.76 0.24
Arrow CAC-40 4,930.14 0.32
Arrow Nikkei 19,883.94 0.30
Arrow H.Seng 22,068.32 1.87
Arrow Sensex 26,128.20 0.65

Wholesale Camping Equipment from China at 

New 2015 adidas and Nike Soccer Cleats at Kicks Corner uk

Ad Asia 2015

Foreign Debt $62.649bn
Per Cap Income $1,512
GDP Growth 4.24%
Average CPI 8.6%
Trade Balance $-2.197 bln
Exports $1.729 bln
Imports $3.926 bln
WeeklyNovember 23, 2015
Reserves $19.713 bln