IFC, Citi provide USD 1.2 bln to support trade in emerging markets

This initiative will work in partnership with global and regional banks with the goal of expanding the availability of trade at a time of reported global scarcity. The facility extension will expand the availability of trade credit for clients in emerging markets over a four-year span through a risk-sharing structure. IFC and partners will contribute USD 600 million, and Citi will provide an additional USD 600 million. IFC announced an extension of the GTLP program in 2012 to continue promoting international trade growth in emerging markets, including many IDA countries.

Citi will use the funding to originate and fund trade finance transactions in Africa, Asia, Central and Eastern Europe, Latin America, and the Middle East, enabling its bank clients to extend financing to local importers and exporters. The funding is expected to support emerging market trade flows of more than USD 5 billion through 2022.

IFC’s Trade and Commodity Finance programs offer guarantees, risk-sharing facilities, loans and other structured products to support trade in emerging markets. Through these various products, IFC has supported more than 400 financial institutions and thousands of underlying companies in more than 90 countries across all regions of the globe. Trade finance is a priority for IFC owing to the high development impact it can have on developing countries.