Press Releases

IFC Trade Facilitation Program Helps Expand Trade with Emerging Market Countries

In Washington, D.C.:
Bonnie Galat
Phone:  (202) 473-5335

Washington, D.C., July 15, 2010—IFC, a member of the World Bank Group, issued $3.46 billion in guarantees to support trade with emerging markets in fiscal year 2010 under its Global Trade Finance Program.  More than half the volume was directed toward the world’s poorest countries.

The program expands bank capacity to provide trade finance for importers and exporters in emerging markets by providing risk mitigation on a per-transaction basis.  With 44 percent growth this year, the program now includes 190 financial institutions in 82 emerging markets to provide trade finance—important at a time when inter-bank and credit activity remained cautious.  Focus was on bolstering underserved and nascent trade corridors.

More than 80 percent of the IFC guarantees supported trades valued at less than $1 million, benefiting smaller importers and exporters; 36 percent of the volume enabled flows between emerging markets, sending cashew nuts from Cote d’Ivoire to Vietnam, grain from Thailand to Mali, and cement from Turkey to Sierra Leone, among other trade transactions.

Latin America was the program’s most dynamic region during the year, representing 34 percent of total dollar volume, followed by Sub-Saharan Africa with 22 percent of the guarantees volume, and the Middle East and North Africa with 15 percent of the volume.

Program activity more than doubled in Europe and Central Asia to reach 15 percent of total volume during FY10, including guarantees for the import of energy-efficient, environmentally friendly technology to build a new-generation clean coal-powered plant in the Rostov region of Russia.  
In Asia, focus remained on smaller economies and underserved banks in the region.  Private banks in Vietnam and Bangladesh continued to be the most active beneficiaries of IFC support.

Through the program IFC also provides training and advisory services to its clients.  During FY10, IFC facilitated 51 programs in 43 countries, training 1,144 people representing 316 institutions.  For the first time, IFC provided training for Iraqi bankers to help the emerging nation rejoin international trade networks and promote growth of the Iraqi economy.
About IFC
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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit