Washington, D.C., February 24, 2009—The
Japanese government is contributing $1million to help IFC, a member of
the World Bank Group, provide training to strengthen the ability of African
financial institutions to structure trade finance transactions amid the
global economic crisis.
Japan’s contribution will be used to
support the IFC Trade Finance Advisory Services Initiative, which is part
of the $3 billion Global Trade Finance Program. The program extends and
complements banks’ capacity to deliver trade financing by providing risk
mitigation in challenging market conditions where trade lines might be
constrained. Trade guarantees are especially important during the recent
global economic turbulence, helping to maintain market confidence and to
keep trade flowing.
Japan’s contribution comes in response
to IFC’s action plan to further expand its trade finance operations in
Africa. That plan was announced during the fourth Tokyo International Conference
on African Development in 2008. Since then, IFC has guaranteed more than
$428 million trade transactions in Sub-Saharan Africa.
“We would like to thank Japan for their
generous contribution,” said Georgina Baker, IFC Director for Short Term
Finance. “This contribution will be used for various training programs
in Africa to scale up the local banks’ trade finance operations where
it is needed most.”
Japan has made large contributions to
support emerging-market countries during the global crisis. On February
17, it launched a $1 billion trade finance facilitation initiative to be
developed in close cooperation with IFC and the Asian Development Bank.
Japan also has agreed to contribute $2 billion to IFC’s Bank Recapitalization
Fund to support banks in emerging markets.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.