The Global Trade Liquidity Program (GTLP) is a global initiative that brings together IFC’s knowledge of and experience in emerging markets with global private sector banks to support trade in developing markets. The GTLP program seeks to address the continuing gap in emerging market trade finance that reached a critical level at the time of the global financial crisis but has persisted since that time.
GTLP‘s main objective is to promote emerging market private sector trade by mobilizing funded and unfunded financing and channeling credit for trade transactions to targeted sectors and regions. To maximize its developmental reach, particularly with respect to SMEs and IDA countries, IFC partners with global and regional banks (together, “Utilization Banks”) with wide correspondent trade networks and strong commitment to trade finance.
Program Structure
IFC enters into funded or unfunded risk participation agreements with global or regional Utilization Banks pursuant to which IFC acquires a pro rata interest in a portfolio of trade transactions originated by the Utilization Banks with the credit risk predicated on the related Emerging Market Issuing Banks. IFC’s risk participation can be up to 50% of the total portfolio. The Emerging Market Issuing Banks generally maintain the credit risk of their respective underlying eligible funded or unfunded trade transactions. When appropriate, IFC engages with third party participants on a funded or unfunded basis to help support the Utilization Bank facility.
Results
To date, GTLP has supported over $53 billion in global trade volume via nearly 24,000 transactions, of which more than $10 billion has represented trade in IDA countries, all of which is directly linked to the movement of specific goods across emerging market borders. GTLP has, through global and regional, supported more than 400 financial institutions in 69 emerging market countries including 28 IDA and 7 fragile and conflict-affected countries (FCS). Through its trade support, GTLP benefits thousands of importers and exporters and small- and medium-sized enterprises.
Participating Banks
- Africa Export Import Bank
- Banco Galicia
- Banco Itau Paraguay
- Citibank
- Commerzbank
- Fimbank
- Intesa Sanpaolo
- J.P. Morgan Chase Bank
- Sumitomo Mitsui Banking Corporation (SMBC)
- Rabobank
- Standard Bank of South Africa
- Standard Chartered Bank
- UniCredit
- Wells Fargo