Standard Chartered, IFC offer $1bn facility to boost trade financing
Standard Chartered and International Financial Corporation (IFC), a member of theWorldBankGroup, have established a $1.0 billion facility to boost trade finance in emerging markets.
Also, the facility will help to sustain trade flows in developing countries and narrow the gap in global trade finance.
Both financial institutions explained that the initiative will support significant trade flows in emerging markets by allowing IFC and Standard Chartered to share the risk of a portfolio of Corporate, Small and Medium-sized Enterprises (SMEs) trade flows on a 50-50 basis.
You are animal, judge tells school supervisor convicted of defiling toddler
However, the risk-sharing arrangement is expected to enable over $4.0 billion in trade finance across markets in Asia, the Middle East, and Africa over a three-year period. By promoting trade facilitation, the facility will help narrow the US$1.5 trillion global trade finance gap at a time when some banks are exiting the trade space.
The partnership builds on Standard Chartered’s longstanding presence in emerging markets and leading trade finance capabilities, and IFC’s global reach and market coverage to increase the availability of trade finance in some of the most challenging markets, including some of the world’s poorest countries. This will bring trade finance to local and regional companies, some of which are credit-constrained and rely on bank trade facilities to manage cash flows and purchase raw inputs.
Senior Director, Financial Institutions Group, IFC, Paulo de Bolle, said, “Trade is a key driver of economic growth in emerging markets. This facility is a unique partnership that can help counter de-risking trends in developing countries and support real-sector demand for trade finance.”
Global Head, Trade Distribution, Standard Chartered, Nicolas Langlois, said, “As a leader in trade finance connecting our clients across the world’s most dynamic corridors, we are committed to facilitating global trade and driving the growth and prosperity of local economies. We are delighted to be partnering with IFC to further our efforts.”
