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JPMorgan Chase Joins International Finance Corporation's Global Trade Finance Program: IFC Providing Risk Coverage for Transactions with Emerging Market Banks


In Washington, DC
Rita Jupe

Phone: (202) 458-8967

E-mail:  
rjupe@ifc.org


New York, September 6, 2005—JPMorgan Chase, a full-service provider of cash management, trade finance and treasury solutions, announced today it has joined the International Finance Corporation's Global Trade Finance Program.   Through the program, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks.  JPMorgan Chase is among the first banks to join the program, which is aimed at supporting trade with emerging markets worldwide and promoting flows of goods and services between developing countries.

“We are pleased to be working with IFC  and to be a participant in the Global Trade Finance Program, which actively promotes global trade in Africa, Asia, Latin America, and the Middle East,” said Stacey Facter, global head of trade credit insurance for the Treasury Services business of  JPMorgan Chase.  “With an already robust emerging markets business in place, we will now be able to develop our exposure in these markets even further through the trade channel established by the IFC program.”


The Global Trade Finance Program offers confirming banks partial or full guarantees to cover payment risk on banks in emerging markets.  These guarantees are transaction-specific and apply to transactions involving: letters of credit; trade-related promissory notes and bills of exchange; bid and performance bonds; and advance payment guarantees or credits to suppliers.  In each case, the guarantees are in connection with the export or import of goods, commodities, or services from or to the country of the bank obligor.  The IFC program will allow JPMorgan Chase to extend its geographical reach further into emerging markets and will facilitate broader risk coverage for challenging trade transactions.


“IFC’s Global Trade Finance Program is a good fit for confirming banks like JPMorgan Chase that want to mitigate risk and finance their trade transactions through the channels created by our client network,” said Bonnie Galat, head of marketing and sales for the program at IFC.  “The program can also help developing countries increase their share of global trade.”


About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.2 trillion and operations in more than 50 countries.  The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity.  The Treasury Services business of JPMorgan Chase
(
www.jpmorganchase.com/ts) is a top-ranked, full-service provider of innovative payment, collection, liquidity and investment management, trade finance, commercial card, and information solutions to corporations, financial services institutions, middle market companies, small businesses, governments and municipalities worldwide.  With more than 50,000 clients and a presence in 36 countries, JPMorgan Chase Treasury Services is the world’s largest provider of treasury management services.  Information about the firm is available at www.jpmorganchase.com.

About IFC

The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives.  IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.  From its founding in 1956 through FY2004, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries.  IFC’s worldwide committed portfolio as of FY2004 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.

In New York, NY
John Johmann
Phone: (212) 552-9377
E-mail: John.Johmann@chase.com

In Pasadena, CA
Aurora Johnson
Phone: (626) 449-9501
E-mail: ajohnson@painepr.com