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
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.
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 www.ifc.org.