With interest from its members coming in, ADFIAP has set up two meetings to move the initiative forward, one in Hanoi during the annual meetings on May 9 and a follow-up one in Frankfurt in July 2-3, 2007.
The fund initially labeled as the ADFIAP Enterprise Fund (AEF) provides for a regional refinancing facility for small and medium enterprises (SMEs), with the participation of interested ADFIAP members and Germany’s KfW Development Bank.
The AEF aims to provide ADFIAP members with long-term funding through loans and guarantees. It will also capitalize on the good country ratings and financial strength of member-shareholders by obtaining financial contributions from leading ADFIAP member from China, South Korea, India, the Philippines, Sri Lanka, Fiji, etc. It is envisioned that the AEF will be legally formed in a country that offers little or no tax liability and tender fund management to an independent, professional fund manager. The Fund also aims to establish a separate technical assistance (TA) fund to increase capacity building of ADFIAP members as well as other institutions that receive refinancing.
Because the main beneficiaries of the Fund will be those firms operating in member-banks’ countries, cooperation is paramount. In order for this innovative and practical cooperation scheme to succeed, ADFIAP members and shareholders are expected to provide the necessary inputs to ensure its success.
For more details on the AEF, please contact the ADFIAP Secretariat