The Global Trade Finance Program extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained.
The program provides guarantees and pre-export cash advances to banks. These services are available for all private sector trade transactions that meet IFC's eligibility criteria.
To date, the program has provided $1.4 billion worth of guarantees to issuing banks in developing countries. More than half of these have been issued to support trade in Africa. The program is active in Africa countries ranging from Liberia to the Democratic Republic of Congo, Mauritania, Nigeria, and Tanzabia, to name a few.
The program offers confirming banks partial or full guarantees covering payment risk on banks in the emerging markets for trade related transactions. These guarantees are transaction-specific and may be evidenced by a variety of underlying instruments such as: letters of credit, trade-related promissory notes, accepted drafts, bills of exchange, guarantees, bid and performance bonds and advance payment guarantees
Through the program’s bank network, local financial institutions can establish working partnerships with a vast number of major international banks in the program that can broaden access to finance and reduce cash collateral requirements.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27-11-731-3179
Email: hbassiri@ifc.org
