ADFIAP-KfW to Pursue Cooperation Dialogue

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ADFIAP and the German development bank, KfW, met in Kuala Lumpur during the 64th Board Meeting of the Association in the Malaysian capital city to discuss possible cooperation between the two institutions on capacity-building and business relationship in their common mission to assist small and medium enterprises (SMEs) in the region.

Possible training events that can be co-organized by ADFIAP and KfW are in the areas of innovation and technology through equity and venture capital investments; development of effective rating systems for SMEs; securitization of SME loans; export financing and FDI support for SMEs; encouraging investment through clean development mechanism (CDM) facilities; and exploring the potential for a regional SME fund.

In terms of business cooperation, an exploratory talk to revive the idea of an ADFIAP Fund and how this potential regional SME financing facility to be set up by interested ADFIAP members will take shape, was also undertaken during the bilateral dialogue. It will be recalled that during the pre-Asian financial crisis period, the Association did plan to create a regional venture capital fund which was subsequently shelved due to the adverse business climate right after the crisis.

It was also agreed that the two development organizations will pursue further dialogues to discuss these issues further. KfW was represented by Messrs. Uwe Ohls and Haje Schuette, First Vice-President for South & Central Asia and Division Chief, Financial and Private Sector, respectively.

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