Global Trade Finance Program (GTFP)

The Global Trade Finance Program (GTFP) is IFC’s flagship trade finance program, having provided over 188,000 firms with $120 billion in trade finance over the last 20 years.

The GTFP supports key strategic priorities, including food security, job creation, climate, and gender, and most of the beneficiary firms operate in IDA countries. In fact, one third of GTFP activities are in agriculture and food, and 40% are in Africa.

Confirming Banks

The GTFP extends and complements the capacity of confirming banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained. GTFP offers competitive terms, covering up to 100 percent of the transaction value and provides tenors of up to three years to support capital goods imports.

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Issuing Banks

The GTFP enables local financial institutions in emerging markets to broaden their access to finance and reduce cash collateral requirements by partnering with major international banks. By facilitating this access to a global network of confirming banks, the GTFP bolsters the flow of trade credit into the local markets, thereby supporting the import of critical goods, creating jobs, and generating much-needed foreign exchange via exports.

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Program Structure

GTFP 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
supplier credits for the import of capital goods

GTFP uses master agreements, which facilitate a 24-48 hour response time via SWIFT for individual transactions. GTFP has a dedicated trade unit to serve our partners’ business needs and offers commercial pricing with no commitment fees. In addition, GTFP provides funding to banks for short-term pre-export financing.

Training

Technical training for issuing banks represents an integral part of GTFP. 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.

Sustainable Trade

IFC introduced the concept of Sustainable Trade in 2010 as an incentive for participating banks in its Global Trade Finance Program (GTFP) to facilitate cross-border trade of equipment and raw materials in areas with climate benefits, including renewable energy, energy efficiency, smart agriculture, sustainable transport, and green buildings.