IFC’s Global Trade Finance Program helped emerging market companies access financing to support over $6.7 billion in trade flows in 2011, with over 75 percent of guarantees covering imports and exports by small and medium enterprises.
For these accomplishments, as well as for efforts to develop new programs to help global trade finance banks weather recent economic turbulence, leading trade industry publication Global Trade Review recognized IFC with its inaugural Leader in Trade award for the best trade facilitation program.
The award honors a development bank or multilateral agency that has played a critical role in supporting and facilitating trade finance flows.
A new $532 million trade credit policy signed in June 2011 with insurance broker Marsh allowed IFC to expand trade credit in the world’s poorest countries through the Global Trade Finance Program, which guarantees individual emerging market trade transactions. The expansion comes at a time when many banks are pulling back on trade finance because of continued financial uncertainty.
The magazine also acknowledged IFC’s efforts to develop warehouse finance, structured commodity finance, and supply chain finance products to help global banks meet the needs of their clients operating in developing countries.
“IFC’s trade and supply chain programs are helping companies in emerging markets access much-needed financing, ” Georgina Baker, IFC Director, Global Trade and Supply Chain Solutions told Global Trade Review. “As global economic conditions constrain the availability of trade and commodity financing, particularly for smaller markets and clients, our support will be critical to enable SMEs to continue to grow and hire new employees.”
Deal of the Year
Global Trade Review annually highlights the achievements of banks, financial institutions, insurers, and brokers operating in the trade, commodity, and supply chain financing sectors. A market poll determines the winners of Leaders in Trade awards, while editors select Deals of the Year from a pool of hundreds of nominations.
One of IFC’s new programs, the Global Warehouse Finance Program (GWFP), was also recognized as a Deal of the Year for its first disbursement to Paraguay’s Sudameris Bank.
GWFP was launched in September 2010 to increase working capital financing to farmers, traders, and exporters in emerging markets by leveraging their own production. The project with Sudameris Bank provides credit against warehouse receipts, expanding access to finance for local farmers and small and medium enterprises in the agribusiness sector.
“IFC has helped us increase our portfolio by 60 percent in less than a year, " said Conor McEnroy, President of Sudameris. "By working with farmers and small businesses, we are creating jobs and contributing to economic growth in Paraguay."
The program is expected to reach up to 570, 000 farmers across emerging markets in all regions and contribute to food availability for 15.3 million people by 2014.
More good global economy news
Canada scrapping tariffs, opening more free trade.
TORONTO (Reuters) - Canadian Finance Minister Jim Flaherty said on Sunday the government would eliminate tariffs on dozens more products used by Canadian manufacturers, aiming to lower their costs and encourage more hiring.
The initiative would scrap custom duties on 70 items used by businesses in sectors such as food processing, furniture and transportation equipment.
Flaherty, who estimated the tariff cuts would save Canadian businesses C$32 million ($30.5 million) a year, said the cuts were part of the Conservative government's overall free trade policy
Hillary Offers a Comprehensive Energy Plan
Hillary's plan promotes energy independence, addresses global warming, and transforms our economy:
* A new cap-and-trade program that auctions 100 percent of permits alongside investments to move us on the path towards energy independence;
* An aggressive comprehensive energy efficiency agenda to reduce electricity consumption 20 percent from projected levels by 2020 by changing the way utilities do business, catalyzing a green building industry, enacting strict appliance efficiency standards, and phasing out incandescent light bulbs;
* A $50 billion Strategic Energy Fund, paid for in part by oil companies, to fund investments in alternative energy