Global Trade Liquidity Program (GTLP)

The Global Trade Liquidity Program (GTLP) brings together IFC’s knowledge of and experience in emerging markets with global private sector banks to support trade in developing markets. This program seeks to address the growing gap in emerging market trade finance.

The Global Trade Liquidity Program’s primary objective is to promote emerging market private sector trade by mobilizing financing and channeling credit for trade to targeted sectors and regions. To maximize its development impact, particularly with respect to SMEs and IDA countries, IFC partners with global and regional banks (Utilization Banks) with wide correspondent trade networks and a strong commitment to trade finance in emerging markets.

In Cote d’Ivoire, cocoa farmers benefit from new trucks to transport their beans to markets. Photo: Anna Koblanck/World Bank

Program Structure

IFC enters into funded or unfunded risk participation agreements with Utilization Banks. Through these agreements, IFC acquires up to a 50% interest in a portfolio of trade transactions originated by the Utilization Bank. The Emerging Market Issuing Banks generally maintain the credit risk of their underlying trade transactions. IFC may engage with third parties to help support the Utilization Bank facility.

Results

To date, the Global Trade Liquidity Program 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. The program has 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, the Global Trade Liquidity Program benefits thousands of importers and exporters, the majority of whom are 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