The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and Wells Fargo, an American financial services provider, recently teamed up to launch a USD 200 million, five-year risk-sharing facility to support the trade financing needs of banks in emerging countries with the aim to propel economic growth and job creation. Half of the portfolio is set to target banks in the Middle East and North Africa.
The facility will operate through IFC’s Global Trade Liquidity Program, which was launched in 2009 with the aim of increasing the flow of trade funds to emerging markets during times of scarce trade liquidity. Since its inception, the program reportedly has helped banks, facilitating channeled approximately USD 20 billion in trade volume.
Charles Silverman, head of Wells Fargo’s Global Financial Institutions Group, said “this agreement will provide additional funding through our financial-institution customers in the Middle East and North Africa in an effort to improve economic conditions. By working with IFC and local banks, we are helping increase trade activity and food security and create jobs [1].”
As of May 2011, Wells Fargo reported USD 1.3 trillion in total assets.
By Amira Berrada, Research Associate
About Wells Fargo: Wells Fargo and Company is a financial services firm that provides banking, insurance, investments, mortgage and consumer finance through 10,000 stores, 12,000 automated teller machines (ATMs) and the internet across North America and internationally. As of May 2011, Wells Fargo reported USD 1.3 trillion in total assets.
About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.
Sources and Additional Resources:
[1] http://www.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/33275324CACEC379852579DC0067B982
MicroCapital.org story, March 5, 2012, “MICROCAPITAL BRIEF: European Union Funds International Finance Corporation (IFC) to Support Microfinance Institution Arvand’s Agricultural Loans in Tajikistan” https://www.microcapital.org/microcapital-brief-european-union-funds-inte…
MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises” https://www.microcapital.org/microcapital-brief-international-finance-cor…
MicroCapital.org story, July 16, 2010, “MICROCAPITAL BRIEF: $1m Investment from Wells Fargo Helps Grameen America Open Microfinance Bank in San Francisco, Its Fifth in the US” https://www.microcapital.org/microcapital-brief-1m-investment-from-wells-…
MicroCapital Universe Profile for Wells Fargo: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Wel…
MicroCapital Universe Profile for International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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