August 19, 2016

UAB, ADB sign momentous agreement to support Myanmar trade

A signing ceremony of United Amara Bank-UAB and the Asian Development Bank-ADB.
A signing ceremony of United Amara Bank-UAB and the Asian Development Bank-ADB.

United Amara Bank-UAB and the Asian Development Bank-ADB yesterday signed a trade finance agreement that will allow UAB to provide greater financial support for trade in Myanmar through guarantees by ADB of up to US$4 million a year.
The agreement has been extended as part of the ADB’s Trade Finance Program-TFP, which works with over 200 partners banks worldwide and will allow UAB to take advantage of ADB’s AAA credit rating.
This marks the first step in a long-term partnership for UAB and ADB to assist trade financing for local businesses in Myanmar and ultimately help boost Myanmar economy.
According to the terms of the agreement, ADB will provide what is known as a Trade Guarantee Facility to UAB to support international Letters of Credit issued by the bank.
“This means that when a Foreign Letter of Credit, or LC, is issued by UAB for one of its customers, and where the foreign party requires an additional guarantee or confirmation, ADB will provide that guarantee,” said the press release of the signing ceremony.
“Our partnership with ADB, one of the most respected financial institutions in the world, marks an important milestone for UAB in this respect and is an achievement that will greatly benefit the people of Myanmar,” said UAB CEO U Thein Lwin.
Since 2009, ADB’s TFP has supported more than 8,200 small- and medium-sized enterprises across the region, with about 11,800 transactions valued at over US$23.6 billion, in sectors ranging from commodities and capital goods to medical supplied and consumer goods.


Related posts

Translate »