Standard Chartered and the IFC have announced the signing of a USD700 million investment in IFC’s Global Trade Liquidity Programme (GTLP) to support global trade finance.

 Since the launch of the initial facility in 2009, the Standard Chartered GTLP facilities have shown strong reach and impact in supporting trade in the emerging markets, particularly those supported by the International Development Association (IDA), as well as low/lower middle-income countries, given the Bank’s established network and correspondent banking relationships. When combined, these facilities have supported over USD20.5 billion in global trade through over 150 Emerging Market Issuing Banks (EMIBs) in 37 countries across 17,746 transactions, without any defaults.

 This renewed facility is expected to support up to USD6.4 billion in trade over three years across Asia, the Middle East, Africa and Latin America by supporting about 850 importers and exporters involved in critical commodities, basic goods and other essential materials to meet market demand. The GTLP programme continues to evolve to reflect changing market dynamics and now features a significant climate component as well as seeking greater activity in the areas of IDA markets and food security.

Sunil Kaushal, Regional Chief Executive Officer for Africa & Middle East at Standard Chartered, had this to say, “We are delighted to renew the GTLP, a longstanding partnership with the IFC since 2009 that is testament to both organisations’ unwavering commitment to narrow the trade finance gap. As a leading trade bank, we have a crucial role to play in enhancing the accessibility to the capital and liquidity needed to facilitate global trade, and to do so in a sustainable manner. Particularly in today’s challenging post pandemic macro environment, such partnerships can help continue to provide the much-needed liquidity to boost trade flows and drive economic growth.This partnership is at the core of what we do as a Bank and in complete alignment with our stand of Resetting Globalisation.”

The GLTP facility has proven to be a highly effective means to channel financing to support emerging market trade flows, and represents a unique and coordinated global initiative that brings together governments, international development and financial institutions, as well as private sector banks. By providing liquidity or guarantees, the programme helps banks grow their credit limits, manage risk and support trade across developing markets which are often under-served.