HSBC and IFC Launch $1 Billion Trade Finance Program for Emerging Markets

Forex - The International Finance Corporation (IFC), which is associated with HSBC and the World Bank, will provide joint financing for trade transactions of up to $1 billion to help fill the financing gap in emerging market trade.
According to a joint statement from the IFC and HSBC, they will share the risk equally on a portfolio of trade-related assets held by emerging market banks in 20 countries across Africa, Asia, Latin America, and the Middle East.
The agreement aims to support cross-border trade and boost exports in critical sectors while facing geopolitical tensions and trade barriers that could create uncertainties for supply chains and threaten economic growth.
Riccardo Puliti, IFC’s Regional Vice President for Asia Pacific, stated, "There is a significant and ongoing trade finance gap in emerging markets in the Asia-Pacific region."
Aditya Gahlaut, Co-Head of Global Trade Solutions for HSBC Asia Pacific, mentioned, "Reducing the trade finance gap and improving access to financing will be central to promoting growth and sustainability in supply chains across Asia and the region."
The new facility is established under the IFC's Global Trade Liquidity Program, which has supported over $80 billion in global trade volume with nearly 30,000 transactions over the past 20 years.