PHNOM PENH, Feb. 6 (Xinhua) -- The Foreign Trade Bank of Cambodia (FTB) on Tuesday joined the Asian Development Bank (ADB)'s Trade and Supply Chain Finance Program (TSCFP) to boost trade finance for micro, small, and medium-sized enterprises (MSMEs) in Cambodia.

FTB Chief Executive Officer Dith Sochal and ADB Country Director for Cambodia Jyotsana Varma signed the deal in Phnom Penh.

"The agreement is part of the ADB's private sector development initiative to promote the sector's participation in Cambodia's economic diversification," Varma said at the event.

"It will fill market gaps by providing financing through partner banks to support trade and MSMEs, representing about 99 percent of all enterprises in Cambodia," she added.

As a partner bank of the TSCFP, the FTB will provide support to corporate and MSME clients in Cambodia by allowing trade finance instruments issued by the FTB to be covered by TSCFP credit guarantees, she said, adding that this assistance is expected to help increase the number of international banks engaged in the Cambodian market.

Sochal said the FTB has already been working with the ADB program to boost its knowledge and skills in trade facilitation, he said, adding that the program has helped build capacity within the FTB on report preparation, good practices, innovative strategies, training modules, and performance measurement.

The TSCFP has provided loans and guarantees to more than 200 partner banks in many countries to support trade, boosting imports and exports that foster growth, according to the ADB.

Since 2009, the TSCFP has supported 57 billion U.S. dollars in trade in more than 45,000 transactions in emerging markets, the lender said. Enditem

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