More trade finance needed

A lack of trade financing – the loans and guarantees needed to support import and export transactions – for international deals within developing Asian countries such as Cambodia is restricting opportunities for growth, a survey by the Asia Development Bank (ADB) has found. Of 106 banks surveyed, those within developing Asian economies had rejected $425 billion of a potential $2.1 trillion requested in trade finance in 2011. … ADB deputy country director Peter Brimble said trade finance is critical in supporting the export transactions of Cambodian small and medium-sized enterprises (SMEs), which do not have access to financing from parent companies abroad. … Cambodian-based SME-development consultant Lun Yeng said that SMEs would need support from government and multi-national development banks to assist with the capital needed to acquire funding. … Brimble said Cambodian exporters are not used to accessing trade finance, while Cambodian banks often perceive it as too risky to lend. In partnership with ACLEDA Bank, the ADB fills trade finance gaps by providing guarantees or loans themselves.

http://www.phnompenhpost.com/2013031361906/Business/more-trade-finance-needed.html