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Washington D.C., November 21, 2011
—IFC, a member of the World Bank Group, has expanded its Global Trade Finance Program by more than $500 million, which will help small and medium enterprises in developing countries increase trade, generate foreign exchange, and create jobs.
The expansion reflects the provision of a $532 million trade-credit insurance policy brokered by Marsh, a leading insurance broker, and underwritten by nine leading insurers. The new policy will enable IFC to expand trade credit in the world’s poorest countries at a time when many banks are pulling back on trade finance because of continued financial uncertainly.
"IFC is playing a leadership role in driving global trade through the GTFP and creating lasting partnerships that are bringing economic growth and job creation to some of the world's poorest countries," said Georgina Baker, Director of Short-Term Finance, IFC. "This new facility brokered by Marsh will help our partner banks to increase their business with small and midsize firms in emerging markets and enable trade that otherwise would not have happened."
Evan Freely, Global Leader of Marsh's Political Risk and Trade Credit Practice, said: "This is a great example of the critical role insurance can play to help stimulate growth, reduce poverty, and improve people's lives in developing countries. We are delighted to be working with IFC to make a real difference to the lives of many in developing countries."
Since its inception in 2005, IFC’s award-winning GTFP has issued more than 10,000 guarantees totaling $14.3 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. Most significantly, in fiscal year 2011, 53 percent of the total volume was to support trade in the world’s poorest countries, and 79 percent went to SMEs. The program includes more than 200 partner banks in over 90 emerging-market 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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