HFC Boosts Trade Finance
Knowledge on trade finance is very important for Banks. This was the comment made by the acting chief executive officer HFC Bank in Fiji Raj Sharma at the HFC Bank and Asian Development Bank (ADB) trade finance client seminar at Tanoa Waterfront Hotel in Lautoka yesterday.
He said the seminar would enhance the knowledge of their customers to know about trade finance facilities offered by HFC Bank.
“This year we have signed an agreement with ADB under this trade finance facility,” Mr Sharma said.
“This means with ADB, it gives us a window to have access to over 200 banks globally.”
He added: “Trade finance facility has a lot of advantages and we as a local bank would have difficulty to setup a corresponding relationship with other banks.
“We have learnt about trade finance facilities in terms of letters of credit that could be given to the
customers, opening of account.
“This helps our customers a means of security for remitting of funds.
“It also helps the customer in their cash flows.
“They do not have to pledge cash while making a payment. Third one is the security to prevent frauds.”
He also said that this was the first time such a seminar was organised in Fiji by HFC Bank. “A Similar workshop is also planned for Central Division on Thursday and we are looking at more collaboration with ADB in this nature of things.” Consultant, private sector operations department of Asian Development Bank Roger Packham said ADB had a trade finance program which had been in Asia for over ten years.
“The idea is to help local banks to make them internationally competitive through the credit guarantee facility,” Mr Packham said. “There is also revolving credit facility where ADB can lend foreign currency to local banks so that they can lend foreign currency as well.”
He also added: “If the other banks are interested in joining, they can talk to ADB.”