IFC, Citi support emerging markets trade with N157.1bn

Jin-Yong Cai, IFC CEO

The International Finance Corporation (IFC), and Citi has agreed to jointly support trade in emerging markets to the tune of $1 billion, about N 157.1 billion, for risk-sharing facility to stimulate the growth of trade in emerging markets, drive job creation and economic development.

IFC is a Washington based member of the World Bank Group, is the largest global development institution focused exclusively on the private sector.

A press statement made available to DigitalSENSE Business News, shows that the signing of the deal marks the first extension of an existing facility under the IFC Global Trade Liquidity Programme (GTLP).

It was also gathered that IFC and Citi initially launched a trade finance facility in October 2009 and the facility reached $900 million at its peak and supported $6 billion of emerging market trade over its three-year life.

DigitalSENSE Business News recalls that the IFC-Citi facility has financed over 2,000 funded trade investment instruments through 92 banks in 23 developing countries.

The Global Head, Treasury and Trade Solutions at Citi, Naveed Sultan,  said the partnership with IFC has been a tremendous success, helping to stimulate the recovery and growth of global trade in emerging markets.

“We look forward to continuing our partnership with banks, corporations, and the public sector across emerging markets to continue to stimulate global trade,” Sultan said.Pointing out that the facility extension will expand the availability of trade finance for clients in emerging markets over a three-year span through a 50-50 risk-sharing structure.

IFC and partners, including other development finance institutions, will contribute $500 million, and Citi will provide an additional $500 million.IFC Director for Global Trade and Supply Chain Solutions, Ms Georgina Baker, said as the availability of global trade finance continues to decline, IFC is committed to working with Citi on innovative solutions like the Global Trade Liquidity Programme to maintain and expand trade finance flows in the developing world.

“Citi has been one of IFC’s most dedicated partners in trade finance, and IFC looks forward to continuing that partnership to benefit small emerging market firms that rely on trade to grow and create jobs,” Baker said.Citi will use the funding to originate trade finance transactions in Africa, Asia, Central and Eastern Europe, Latin America, and the Middle East, enabling its bank clients to extend financing to local importers and exporters.

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