THE recently launched international trade finance facility by the HFC Bank and Asian Development Bank is expected to reduce fraud and provide convenient payment platform for exporters and importers.
HFC Bank and ADB launched this facility in May this year and yesterday a workshop was held to educate the bank’s clients on how they can use the facility to benefit their businesses.
ADB consultant on the Trade Finance Program, Roger Packham said the facility aimed to help the bank’s customers manage their trade finance.
Through the use of the trade finance facility exporters/importers would be able to reduce the risk of fraud through transactions, lower their cost of imports and get attractive interest rates on their loan facilities.
Mr Packham said the facility would also help customers get access to new markets for their products.
HFC Bank’s acting chief executive officer Raj Sharma said it was a very safe means of trade finance facility which was not necessarily for HFC Bank customers only.
He said their partnership with ADB through its trade finance program had opened new horizons paving the way to access global network of financial institutions supporting international trade.
The program fills market gaps for trade finance by providing guarantees and loans to banks to support trade.
Mr Sharma said they were also looking for potential customers who would be interested in using the facility.
Through the facility the HFC Bank would help customers by giving an undertaking to get their goods either exported or imported which according to Mr Sharma, would help clients avoid becoming victims to frauds.
Mr Sharma said prior to the agreement with ADB, the HFC Bank had difficulties in corresponding with overseas banks in terms of international trade financing but with the agreement they now had access to more than 200 international banks who were under the same initiative.
More than 30 importers were present at the workshop yesterday with plans to host more client seminars to create awareness of international trade products to enable international traders to protect their interest and gain maximum benefit.
