How Does IFC Support Trade Transactions?
The program offers confirming banks partial or full guarantees to cover payment risk on banks in the emerging markets. These guarantees are transaction-specific and apply to:
letters of credit trade-related promissory notes and bills of exchange bid and performance bonds advance payment guarantees suppliers credits for the import of capital goods
In addition, IFC provides funding to banks for short-term pre-export financing.
How Does a Typical Transaction Look Like?
What Does the Global Trade Finance Program Do for Business?
The program combines global reach and maximum flexibility to assist trade finance deals by:
delivering trade solutions through a global network of participating banks covering large and small transactions in challenging countries using master agreements, which facilitate 24-48 hour response time via SWIFT for individual transactions having in place a dedicated trade unit to serve business needs offering commercial pricing with no commitment fees supporting all valid private sector trade transactions meeting IFC criteria covering up to 100 percent of transaction value providing tenors of up to three years to support capital goods imports.
Trade Development through Trade Finance Training
Technical training for issuing banks represents an integral part of the Global Trade Finance Program. Technical assistance modules comprise basic and intermediate courses on trade finance. On a selective basis, IFC places experienced trade finance bankers with issuing banks to help them develop trade finance and other banking skills. In addition, IFC assists in arranging training at major international trade banks for trade officers of issuing banks.
