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The Global Trade Liquidity Program (GTLP) is a unique, coordinated global initiative that brings together governments, development finance institutions (DFIs), and private sector banks to support trade in developing markets and address the shortage of trade finance resulting from the global financial crisis. GTLP began its operations in May 2009, channeling much-needed funds to back trade in developing countries. It raises funds from international finance and development institutions, governments, and banks, and it works through global and regional banks to extend trade finance to importers and exporters in developing countries. IFC’s commitment to the program is $1 billion. World Bank President Robert Zoellick and Director-General of the World Trade Organization, Pascal Lamy host GTLP’s launch in Geneva with partners, July 2009 GTLP Phase 2 was launched in January ’10 with an unfunded solution, based on the existing GTLP platform, to support trade finance in the emerging economies of Central and Eastern Europe. It is planned to expand to cover Africa and Latin America. Phase 2 also will include directed Food and Agribusiness solutions, a response to the global call for action in this critical sector. Since its launch in July 2009, GTLP has been acknowledged in the financial industry as an innovative structure to help infuse much needed liquidity into the trade finance market, thereby catalyzing global trade growth. The solution also represents a win-win proposition: for the banks it provides an opportunity to continue supporting clients through these difficult times; for IFC and its partners, it affords the ability to channel liquidity and credit into markets to help revitalize trade flows by leveraging on the banks’ vast networks across emerging markets in Asia, Africa, Middle East, Europe, and Latin America. The program is already benefitting thousands of importers and exporters and small and medium-sized enterprises. |