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Munich Re to support Asian trade financing

Munich Re will provide up to $US250 million ($337 million) of insurance capacity for trade financing in Asia, under an agreement with the Asian Development Bank (ADB).

It is the first such deal between the German reinsurer and the Philippines-based bank, which focuses on reducing poverty in emerging Asian economies by providing loans for economic and social projects.

The agreement supports the ADB’s Trade Finance Program, which provides guarantees and loans to banks to support trade in so-called frontier economies. About 1908 transactions worth $US2.5 billion ($3.4 billion) were achieved through the program last year, with banks in Sri Lanka, Vietnam and Bangladesh among the most active users.

“The signing of this agreement is a milestone for the co-operation between ADB and Munich Re,” Munich Re Head of Reinsurance Development Division Marcus Winter said.

“Our partnership will further support Asian economies in their trade relations with the international community.”

The ADB says Munich Re’s participation will lift the region’s economic development.

The agreement was signed last week in Manila.