Standard Chartered and IFC renew commitment to boost global trade by up to $6 billion
Standard Chartered and International Finance Corporation, IFC, have announced the signing of a $700 million investment in IFC's Global Trade Liquidity Program (GTLP) to support global emerging market trade finance.
Since the launch of the initial facility in 2009, the Standard Chartered GTLP facilities have shown strong reach and impact in supporting trade in the emerging markets, particularly those supported by the International Development Association (IDA), as well as low/lower middle-income countries, given the Bank's established network and correspondent banking relationships. When combined, these facilities have supported over USD20.5 billion in global trade through over 150 Emerging Market Issuing Banks (EMIBs) in 37 countries across 17,746 transactions, without any defaults.
This renewed facility is expected to support up to US$6.4 billion in trade over three years across Asia, the Middle East, Africa and Latin America by supporting about 850 importers and exporters involved in critical commodities, basic goods and other essential materials to meet market demand. The GTLP program continues to evolve to reflect changing market dynamics and now features a significant climate component as well as seeking greater activity in the areas of IDA markets and food security.
"We are delighted to renew the GTLP, a longstanding partnership with the IFC since 2009 that is testament to both organisations' unwavering commitment to narrow the trade finance gap," said Sunil Kaushal, Regional Chief Executive Officer for Africa & Middle East at Standard Chartered. "As a leading trade bank, we have a crucial role to play in enhancing the accessibility to the capital and liquidity needed to facilitate global trade, and to do so in a sustainable manner. Particularly in today's challenging post pandemic macro environment, such partnerships can help continue to provide the much-needed liquidity to boost trade flows and drive economic growth. This partnership is at the core of what we do as a Bank and in complete alignment with our stand of Resetting Globalisation."
The GLTP facility has proven to be a highly effective means to channel financing to support emerging market trade flows and represents a unique and coordinated global initiative that brings together governments, international development and financial institutions, as well as private sector banks. By providing liquidity or guarantees, the program helps banks grow their credit limits, manage risk and support trade across developing markets which are often under-served.
"The joint work of Standard Chartered and IFC over the years has helped support trade in Emerging Markets, a key component of growth and job creation," said Mohamed Gouled, IFC Vice President of Industries. "Given our aligned footprint, shared vision for sustainable development and ability to deploy capital and expertise where our support is needed the most, I look forward to continuing to innovate together and to further expanding our impactful partnership in trade with an increased focus on Sub-Saharan Africa and supporting smaller suppliers further down the supply chain."