Standard Chartered and the International credit Corporation, IFC, have agreed to contribute $700 million in IFC’s Global Trade Liquidity Program (GTLP) to assist global emerging market trade credit.
Given the Bank’s established network and correspondent banking relationships, the Standard Chartered GTLP facilities have demonstrated strong reach and impact in supporting trade in emerging markets, particularly those supported by the International Development Association (IDA), as well as low/lower middle-income countries, since the initial facility’s launch in 2009. When these facilities are combined, they have supported approximately USD20.5 billion in global trade through over 150 Emerging Market Issuing Banks (EMIBs) in 37 countries across 17,746 transactions, with no defaults.
This refurbished facility is expected to help up to $6.4 billion in commerce spanning Asia, the Middle East, Africa, and Latin America over the next three years by assisting about 850 importers and exporters involved in crucial commodities, basic goods, and other essential resources to meet market demand. The GTLP program is evolving to accommodate new market realities, and it now includes a strong climatic component, as well as a focus on IDA markets and food security.
“We are delighted to renew the GTLP, a longstanding partnership with the IFC since 2009 that demonstrates both organizations’ unwavering commitment to closing the trade finance gap,” said Sunil Kaushal, Standard Chartered’s Regional Chief Executive Officer for Africa and the Middle East. “As a leading trade bank, we have a critical role to play in increasing access to the capital and liquidity required to facilitate global trade in a sustainable manner.” Such collaborations can help continue to provide much-needed liquidity to support trade flows and fuel economic growth, especially in today’s hard post-pandemic macro climate. This collaboration is at the heart of what we do as a bank and is completely consistent with our Resetting Globalisation stance.”
The GLTP facility has shown to be a highly effective means of channeling finance to boost emerging market trade flows, and it represents a one-of-a-kind and coordinated global initiative that brings together governments, international development and financial institutions, and private sector banks. By providing liquidity or guarantees, the initiative assists banks in increasing their loan limits, managing risk, and facilitating commerce across developing markets that are frequently underserved.
“The joint work of Standard Chartered and IFC over the years has helped support trade in Emerging Markets, which is a key component of growth and job creation,” said Mohamed Gouled, IFC Vice President of Industries. “Given our shared footprint, shared vision for sustainable development, and ability to deploy capital and expertise where it is most needed, I look forward to continuing to innovate together and expanding our impactful partnership in trade, with an increased focus on Sub-Saharan Africa and supporting smaller suppliers further down the supply chain.”