The Global Trade Liquidity Program (GTLP) brings together IFC’s knowledge of and experience in emerging markets with global private sector banks to support trade in developing markets. This program seeks to address the growing gap in emerging market trade finance.
The Global Trade Liquidity Program’s primary objective is to promote emerging market private sector trade by mobilizing financing and channeling credit for trade to targeted sectors and regions. To maximize its development impact, particularly with respect to SMEs and IDA countries, IFC partners with global and regional banks (Utilization Banks) with wide correspondent trade networks and a strong commitment to trade finance in emerging markets.
Photo: Anna Koblanck/World Bank
Program Structure
IFC enters into funded or unfunded risk participation agreements with Utilization Banks. Through these agreements, IFC acquires up to a 50% interest in a portfolio of trade transactions originated by the Utilization Bank. The Emerging Market Issuing Banks generally maintain the credit risk of their underlying trade transactions. IFC may engage with third parties to help support the Utilization Bank facility.
Results
To date, the Global Trade Liquidity Program has supported over $53 billion in global trade volume via nearly 24,000 transactions, of which more than $10 billion has represented trade in IDA countries, all of which is directly linked to the movement of specific goods across emerging market borders. The program has supported more than 400 financial institutions in 69 emerging market countries, including 28 IDA and 7 fragile and conflict-affected countries (FCS). Through its trade support, the Global Trade Liquidity Program benefits thousands of importers and exporters, the majority of whom are small- and medium-sized enterprises.
Partner Banks
- Citibank
- Standard Chartered Bank
- Sumitomo Mitsui Banking Corporation
- MUFG Bank Ltd.
- Absa Bank Limited
- Deutsche Bank
- HSBC
Last updated: December 2024