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Standard Chartered Bank and IFC have announced the signing of a US$700 million investment in IFC’s Global Trade Liquidity Program (GTLP) to support global trade finance.
The updated facility is expected to support up to $6.4 billion in trade in Asia, the Middle East, Africa and Latin America over three years, supporting approximately 850 importers and exporters of critical commodities, essential commodities and other vital materials to meet market demand .
Since launching the initial facility in 2009, the Standard Chartered GTLP facility has demonstrated strong presence and influence in supporting trade in emerging markets, particularly those supported by the International Development Association (IDA), as well as low/low-middle income countries given the The Bank’s established network and correspondent banking relationships. Combined, these facilities supported more than $20.5 billion in global trade through more than 150 Emerging Market Issuing Banks (EMIBs) in 37 countries, across 17,746 transactions without any defaults.
GTLP program
The GTLP program has evolved to reflect changing market dynamics and now has a significant climate component and seeks to develop additional activities in the IDA market and food security areas.
Sunil Kaushal, Chief Executive, Africa and Middle East, Standard Chartered Bank, said: “We are delighted to renew GTLP, a long-standing partnership with IFC since 2009, demonstrating the strong commitment of both organizations to closing the trade finance gap .” .
“As a leading trade bank, we play a vital role in improving access to the capital and liquidity needed to facilitate global trade, and doing so in a sustainable manner. Especially in today’s challenging In the post-pandemic macro environment, this partnership can help continue to provide much-needed liquidity to facilitate trade flows and drive economic growth. This partnership is at the heart of what our bank does and is fully in line with our position on restarting globalization.”
trade flow
The GLTP facility has proven to be a highly effective means of channeling financing to support trade flows in emerging markets and represents a unique and coordinated global initiative that brings together governments, international development and financial institutions, and private sector banks .
By providing liquidity or guarantees, the program helps banks increase credit lines, manage risk and support trade in often underserved developing markets.
“Over the years, Standard Chartered’s joint efforts with IFC Trade and Supply Chain have helped support trade in emerging markets, which is a key component of growth and job creation,” said Mohamed Gouled, IFC vice president. With an aligned footprint, a shared vision for sustainable growth, and the ability to deploy capital and expertise where our support is needed most, I look forward to continuing to innovate together and further expand our impactful partnership in trade with an even greater focus on Secondary markets. Sub-Saharan Africa and supporting smaller suppliers down the supply chain.” — trade arab news agency
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