MANILA, Feb. 15 (Xinhua) -- The Asian Development Bank (ADB) said here on Sunday that it welcomes Japan's initiative to facilitate trade finance through the Japan Bank for International Cooperation, cooperating with the ADB's Trade Finance Facilitation Program (TFFP).

    Japan's Finance Minister Shoichi Nakagawa announced the initiative on Saturday after a meeting in Rome of G7 finance ministers.

    Under the Trade Finance Facilitation Program, implemented in 2004, the Manila-based development bank shares with commercial banks the risk of providing essential trade finance to exporters and importers in the region. Such firms, particularly in developing Asia, have long struggled to obtain the necessary trade finance to expand their businesses.

    "The global financial crisis has further reduced the availability of finance that companies depend on for trade, exacerbating an already poor economic outlook," ADB said in a statement, adding that ensuring access to trade finance is crucial to countering the shock of the global downturn in international trade.

    The expansion of the program is expected to help fill the gaps in trade financing left by a weak international financial sector. Promoting and widening provision of such financing will support economic development and regional integration in Asia.

    The Trade Finance Facilitation Program also plays an important role in the ADB's efforts to develop public-private partnerships through risk mitigation, ADB said.

    "The Government of Japan's trade finance facilitation initiative aiming particularly at the region is a clear demonstration of the cooperation that is required during these difficult times," said Haruhiko Kuroda, President of the ADB.

    "We are seeking to accelerate the trade finance support by boosting the size of the TFFP from 150 million U.S. dollars to 1 billion dollars," he added.