Four Training Sessions on “ALM, Trade Finance and Hedging for SMEs”

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Trade financing can significantly help SME businesses to obtain adequate liquidity in facilitating exportation and importation. In the context of Bangladesh, trade financing is relevant mainly for the medium sized enterprises (of the SMEs) that are engaged in the cross border transactions. In the country, bankers have remarkable involvement in the trade process of the firms which may not be true   ALM 1for most of the economies of the world. At this stage, traders in the country heavily rely on bankers in handling their risks in trade transactions. The expertise and knowledge on trade financing techniques (that include facilitation of payments) would offer confidence to the traders/enterprises to obtain the accruable benefits and handling relevant risks effectively. Taking into consideration the importance of Trade financing in Bangladesh, four three-day training sessions were delivered by one of the SSTES, Mr. Nesarul Hoque.  The first three sessions took place at BBTA and the fourth session was held at the premises of CWCCI, in Chittagong.

Broadly speaking, the objective of the training programme was to improve the capacity of the medium sized enterprises in obtaining trade services from banks and handling relevant risks for smooth exportation and importation. Specific objectives of the training programme were:    ALM 2

  • One: to familiarise the participants with the concepts and techniques of international trade payment and finance; and
  • Two: to acquaint the participants with the laws, principles, documents and procedures adopted in payment and financing of international trade in Bangladesh.

These training sessions specifically targeted participants coming from number of business intermediary organisations (members of grant beneficiaries of INSPIRED Component 1 & 2b), women associations, and SME clients of banks, who deal with import and export activities. A total of 86 participants attended the four sessions of this training programme.