Washington, D.C., April 10, 2012
—IFC, a member of the World Bank Group, and Wells Fargo have announced a trade finance facility that will enable banks in developing countries to finance more imports and exports, propelling economic growth and job creation.
Working through Wells Fargo’s network of global financial-institution customers, the facility will provide $200 million for up to five years to help sustain and expand funding for trade flows across Asia, Central America, the Middle East, and North Africa under the IFC Global Trade Liquidity Program. Half of the facility’s portfolio will target the Middle East and North Africa region to spur economic recovery and strengthen food security.
Through the facility, nearly 100 emerging-market banks will be able to extend additional financing to their clients involved in international trade. With easier access to capital, local entrepreneurs can reach new markets, grow their businesses, and hire more employees. Traders can import agricultural commodities to reduce pressure on food scarcity and price inflation, which is particularly important in North Africa.
“This agreement will provide additional funding through our financial-institution customers in the Middle East and North Africa in an effort to improve economic conditions,” said Charles Silverman, head of Wells Fargo’s Global Financial Institutions Group. “By working with IFC and local banks, we are helping increase trade activity and food security and create jobs.”
“Businesses in the Middle East and North Africa are finding it increasingly difficult to access credit,” said Rashad Kaldany, IFC Vice President for Global Industries. “By expanding the amount of available trade financing, the facility will have considerable impact on economic development and employment in the region.”
Launched in 2009, the Global Trade Liquidity Program has helped support about $20 billion in trade volume by channeling capital from more than 600 banks and development finance institutions at a time of global scarcity in trade finance. IFC announced an extension of the program in March 2012 to continue promoting international trade growth in emerging markets, including many of the world’s poorest countries.
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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