IFC and Banco Safra partner to expand trade finance in Brazil

São Paulo, October 7^th  2024  - IFC, a member of the World Bank Group, today announced that Banco Safra has joined IFC's Global Trade Finance Program and became one of 250+ issuing bank partners of IFC under this program.

The trade finance facility from IFC will complement Banco Safra’s capacity to deliver trade finance solutions and assist in developing new trade partnerships with foreign correspondent banks. Through this initiative, IFC will support Banco Safra on its strategy of expanding trade businesses in Brazil.

The Global Trade Finance Program (GTFP) 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, aimed at increasing developing countries’ share of global trade and promoting south-south flows of goods and services. Through the GTFP 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. This enables the continued flow of trade credit into the market at a time when imports may be critical, and the country's exports can generate much-needed foreign exchange.

“The addition of Banco Safra to IFC’s Global Trade Finance Program is key to our efforts to strengthen trade finance in Brazil and Latin America and the Caribbean,” said Helena de la Torre, IFC Regional Manager for the Financial Institutions Group – Brazil and the Southern Cone. “With this network, Banco Safra will be able to establish partnerships with a vast number of major international banks, enabling the continued flow of trade credit into the market.”

In financial year 2024, IFC issued over $1.7 billion in guarantees to facilitate trade flows in Latin America and the Caribbean. The network of issuing banks has now expanded to 73 banks in 16 countries in the region.