Standard Chartered, IFC boost global trade

HCM City (VNA) – Standard Chartered Bank and the International Financial Corporation (IFC) on March 6 agreed to continue their trade finance partnership under the Global Trade Liquidity Programme (GTLP) with a total investment of 1 billion USD.

Through the bank’s presence in emerging markets and established trade finance capabilities, it will launch a portfolio of trade finance transactions of up to 1 billion USD through emerging market issuing banks (EMIBs) with the IFC participating in up to 50 percent of the portfolio or 500 million USD.

These EMIBs will further extend the financing to local importers and exporters in their presence countries to promote global trade.

Financing global trade and commerce is at the core of Standard Chartered’s activities, Alex Manson, Global Head of the bank’s Transaction Banking said, adding that continuing the partnership with IFC underscores its commitment to support and promote economic growth and help bridge the global trade finance gap.

The bank expects to provide more than 5 billion USD to support trade across their footprint over the next three years, he noted.

The partnership alongside the renewal of the GTLP facility is a key part of IFC’s strategy to boost trade globally, creating new markets and new opportunities for lower income countries, Marcos Brujis, Global Director of the Financial Institutions Group at IFC, said.

The GTLP is a portfolio-based trade finance initiative that combines the efforts of IFC and commercial utilisation banks, such as Standard Chartered, to boost support for trade finance in emerging markets.

It has proven to be a highly effective means of providing financing to facilitate trade within emerging markets and address the lack of trade finance to underserved importers and exporters in developing countries.-VNA