Washington, D.C., April 19, 2013—
IFC, a member of the World Bank Group, has provided $23 billion in credit guarantees through its Global Trade Finance Program for developing countries since 2005—nearly half of which has gone to the 81 poorest countries.
Trade finance has become critically important in recent years as new global banking regulations and the European financial crisis have caused bank financial institutions to cut back on trade finance for poorer countries. That could slow job creation in countries that need it most.
“Trade fuels the world economy and drives global integration, helping small and medium enterprises grow and create jobs. But, access to trade finance for SMEs throughout the developing world is limited,” said Jin-Yong Cai, IFC Executive Vice President and CEO. “IFC is playing a leadership role in supporting global trade flows and is committed to doing more in the world’s most challenging markets.”
Since 2005, IFC has provided $11 billion in guarantees to businesses in countries eligible to borrow from the International Development Association, the World Bank’s fund for the poorest countries. In fiscal 2013 alone, IFC provided $2.4 billion in guarantees to businesses in these countries, enabling small and medium enterprises to obtain much-needed finance to expand and join the global trading system.
IFC focuses on supporting trade in such areas as agribusiness, small and medium enterprises, and energy—where the potential to eliminate extreme poverty and boost shared prosperity. The Global Trade Finance Program has provided credit guarantees for more than 26,000 trade transactions since 2005.
The program brings together more than 500 banks in 150 countries, linking large banks in developed markets with smaller banks in fragile and conflicted-affected states and the poorest regions of middle-income countries. This global network provides access to trade and commodity finance wherever the need is greatest. Eighty percent of the guarantees have been for small and medium enterprises.
The program has supported a broad variety of transactions to improve the lives of people in some of the world’s poorest countries. These transactions have helped deliver cancer-screening equipment for women in Gaza, anti-AIDS medicines for HIV patients in the Democratic Republic of the Congo, energy-efficient machinery for the only steel-production facility in Armenia, and turbines for a hydroelectric dam in Honduras.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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