In 2006, the International Finance Corporation (IFC), the private sector arm of the WBG, established the Global Trade Finance Program (GTFP) to help enhance access to trade finance in underserved markets. Under the program, IFC assumes the trade-related payment risk of financial institutions in developing countries by issuing guarantees to international correspondent banks. By mitigating the risks of trade transactions, the program aims to help less creditworthy countries and firms gain increase their access to trade finance.
The GTFP has seen significant growth since it was initiated. Annual commitments rose from $265 million in 320 guarantees in FY06 to $4.6 billion in 3,100 guarantees in FY11, or 38 percent of IFC’s total commitments for the year. In addition, after the onset of the recent global financial crisis in 2009, IFC introduced the Global Trade Liquidity Program (GTLP). The GTLP also saw substantial usage, and by the end of FY11, it had disbursed nearly $1.8 billion to 8 participating banks. IFC also helps developing country banks build capacity in their trade operations through the Trade Advisory Program.
The Independent Evaluation Group of the World Bank Group is undertaking an evaluation of the GTFP and GTLP. The evaluation will provide an independent assessment of the relevance, efficacy, and efficiency of these programs. The report will seek to draw lessons of experience and make recommendations to help enhance the achievement of IFC’s development mission.
IEG’s goal is to make the evaluative process consultative and transparent by inviting views on these programs from a broad range of stakeholders. Everyone is invited to share their views and experiences with the evaluation team either on an open forum on this website or through a confidential online form. We are looking forward to your feedback to help enrich our study.