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IFC, Citi extend $1 billion to support emerging market trade flows

IFC, a member of the World Bank Group, and Citi announced today the signing of a $1 billion risk-sharing facility to stimulate the growth of trade in emerging markets, driving job creation and economic development.

The signing marks the first extension of an existing facility under the IFC Global Trade Liquidity Program. IFC and Citi initially launched a trade finance facility in October 2009. The facility reached $900 million at its peak and supported $6 billion of emerging-market trade over its three-year life. The IFC-Citi facility financed more than 2,000 funded trade investment instruments through 92 banks in 23 developing countries.

The facility extension will expand the availability of trade finance for clients in emerging markets over a three-year span through a 50-50 risk-sharing structure. IFC and partners, including other development finance institutions, will contribute $500 million, and Citi will provide an additional $500 million.

Citi will use the funding to originate trade finance transactions in Africa, Asia, Central and Eastern Europe, Latin America, and the Middle East, enabling its bank clients to extend financing to local importers and exporters. The funding is expected to support emerging-market trade flows of up to $6 billion through 2015.

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