The impact of COVID-19 on trade finance is hard to gauge at this current point in time, as the situation changes day by day. But the requirements for multinationals and development banks has never been more important in keeping supply chains running. TFG heard from Steven Beck, Head of Trade & Supply Chain Finance at Asian Development Bank, joining from Manila.
Season 1, Episode 36
Host: Deepesh Patel, Editor, Trade Finance Global
Featuring: Steven Beck, Head of Trade & Supply Chain Finance, Asian Development Bank
TFG spoke to Asian Development Bank’s Head of Trade & Supply Chain Finance, Steven Beck, about the wider impact of the coronavirus crisis on global supply chains, particularly those stemming out of China.
Beck talked about ADB’s rapid response by providing an additional $200mn USD into their supply chain finance programme, for those providing medical and ventilation equipment, face masks and test kits for COVID-19.
ADB are also responding to the crisis by mapping out complex supply chains for companies that produce and distribute critical goods like test kits, or in 95, masks and ventilators.
The COVID-19 outbreak has certainly caused a short term shock on the supply and demand side, which is where development banks are working together to help ensure liquidity is getting to correspondent banks, and keeping supply chains working.
The paramount importance to rapidly innovate, use digital technologies, and rethink paper-based processes (that are suddenly near impossible to enact) is also accelerating the move towards digital as they move their operations online.