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The International Finance Corp. and global financial conglomerate Citi signed Oct. 30 an agreement for a $1-billion risk-sharing facility that aims to “stimulate the growth of trade in emerging markets, driving job creation and economic development.”
IFC and partners, including other development finance institutions, will contribute $500 million, and Citi will provide an additional $500 million.
“Citi’s partnership with the IFC has been a tremendous success, helping to stimulate the recovery and growth of global trade in emerging markets,” Naveed Sultan, global head of treasury and trade solutions at Citi, said in a press release. “We look forward to continuing our partnership with banks, corporations, and the public sector across emerging markets to continue to stimulate global trade.”
Through the facility extension, clients in emerging markets will have more opportunities to avail of trade finance via a 50-50 risk-sharing structure. The signing is the first extension of an existing facility under the IFC Global Trade Liquidity Program.