On December 12, 2024, the International Finance Corporation (IFC) and HSBC announced a partnership to equally share the risk on a portfolio of trade-related assets held by emerging-market banks across 20 countries in Africa, Asia, Latin America, and the Middle East.
The initiative aims to enhance cross-border trade and support exports in critical industries amid rising geopolitical tensions and trade barriers that threaten economic growth and supply chains.
Riccardo Puliti, IFC's regional vice president for Asia Pacific, highlighted the substantial trade-finance gap in emerging markets, particularly in the Asia-Pacific region. The global trade finance gap is estimated at $2.5 trillion, according to the Asian Development Bank.
Aditya Gahlaut, co-head of global trade solutions at HSBC for Asia Pacific, emphasized the importance of reducing this gap to foster growth and sustainability within regional supply chains.
This new facility is part of IFC's Global Trade Liquidity Program, which has facilitated over $80 billion in global trade volume through nearly 30,000 transactions in the last two decades.