The Asian Development Bank (ADB) and Kina Bank Limited have signed a trade finance agreement to bolster international trade in Papua New Guinea (PNG). This partnership enables ADB’s Trade Finance Program (TFP) to provide a credit guarantee facility supporting up to $4 million of trade annually, focusing on local small and medium-sized enterprises (SMEs) engaged in import and export activities.
The agreement, signed during ADB’s 50th Annual Meeting in Yokohama, Japan, marks ADB’s inaugural trade finance collaboration in PNG and the third in the Pacific region. Christine Engstrom, ADB’s Director for the Private Sector Financial Institutions Division, expressed enthusiasm about the partnership, stating, “We are delighted to be partnering with Kina Bank to support increased trade in PNG.”
Syd Yates, CEO of Kina Bank, highlighted the strategic importance of the alliance, noting that it allows the bank to leverage ADB’s AAA international rating to enhance clients’ international trading activities. He remarked, “Joining the program enables Kina to leverage the AAA international rating of ADB to add value to our client’s international trading activity.”
This collaboration aims to address the financial challenges faced by PNG’s trading businesses, particularly SMEs, by providing them with greater access to trade finance. By mitigating risks associated with international trade, the partnership seeks to stimulate economic growth and diversification in PNG’s trade sector.
