The agreements under ADB’s Trade Finance Facilitation Program (TFFP) were signed by Accessbank, Azerigazbank, Bank Respublika, Demirbank OJSC, and Open Joint Stock Company "Bank of Baku."

The TFFP offers loans and guarantees through and in conjunction with international banks and ADB’s developing member country banks to support international trade transactions. ADB kicked off the program in 2004 and expanded it to US$1 billion on 31 March 2009 because companies in developing member countries, particularly smaller firms, typically find it difficult to access trade finance.

"Trade finance is critical to oil the wheels of international trade. With more Azerbaijani banks now part of the program, local companies will be able to access more trade finance and do more business. As these companies grow, they will take on more workers, which will help boost incomes and reduce poverty," said Philip Erquiaga, Director General of ADB’s Private Sector Operations Department.

Access Bank, Azerigazbank, Bank of Baku and Bank Respublika already had separate TFFP agreements in place.

In 2009, the TFFP provided support for US$1.9 billion in trade deals, a four-fold increase versus 2008, and supported transactions by 263 small- and medium-sized enterprises. In much of developing Asia, smaller firms employ far more workers than large firms.

As well as paving the way for increased offshore trade, the TFFP will also help firms in Azerbaijan to develop relationships with trading partners and financial firms overseas that will reap rewards in the longer term.

"The trade finance agreements will bolster important links between Azerbaijani firms and their business partners in Central Asia and beyond. These will complement efforts by the Central Asia Regional Economic Cooperation (CAREC) program to boost regional economic growth through better transport, energy and trade ties," said Ronald Antonio Q. Butiong, head of the CAREC Unit of ADB’s Central and West Asia Department.

The CAREC program is a partnership of eight countries – Afghanistan, Azerbaijan, the People’s Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, and Uzbekistan - and six multilateral institutions: ADB, the European Bank for Reconstruction and Development, the International Monetary Fund, the Islamic Development Bank, the United Nations Development Program, and the World Bank.

Banks in Afghanistan, Azerbaijan, Mongolia and Uzbekistan are already participating in ADB’s TFFP and ADB expects banks in other Central Asian nations to sign on to the program later in 2010.