According to release issued by Standard Chartered and IFC center, Standard Chartered will originate a portfolio of up to $ 1 billion in trade finance transactions from banks in emerging markets. These local banks will in turn extend trade financing to their importer and exporter clients. [break]
IFC will guarantee a mezzanine tranche of this portfolio providing credit protection and capital relief on the portfolio over three-and-a-half-years. Both IFC and Standard Chartered are working to promote trade finance arrangements to maintain and expand financing lines for developing economies.
Standard Chartered with a long-standing partnership with IFC is exploring other co-financing and risk participation opportunities in underserved sectors as well.
Standard Chartered and IFC along with other development finance institutions and banks have also launched Global Trade Liquidity Program, a larger trade finance initiative that supports the G-20´s call to support emerging market exporters and importers and to get global trade moving again.
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