Emerging markets around the world are expected to see increased flows of vital imports and exports as a result of a new trade credit insurance policy brokered by Marsh for the International Finance Corporation (IFC), a member of the World Bank Group.  Established more than 50 years ago, IFC is the world’s largest multilateral financier for private sector development in emerging markets.

The new $532 million trade credit policy, underwritten by nine leading insurers, enables IFC to expand capacity under its Global Trade Finance Program (GTFP), which guarantees emerging market trade transactions.

The policy protects IFC against the risk of default by a local bank client and initially covers 50 local banks in 30 countries. This marks the first time that IFC has secured insurance to cover and expand its trade credit facilities.

Since its inception in 2005, the GTFP has issued more than 10,000 guarantees totaling $14.3 billion to banks on trade-related payment obligations. These guarantees enable the continued flow of trade credit in the world’s poorest countries at a time when imports are critical and exports can generate much-needed foreign exchange. 

"IFC is playing a leadership role in driving global trade through the GTFP and creating lasting partnerships that are bringing economic growth and job creation to some of the world's poorest countries," said Georgina Baker, Director of Short-Term Finance, IFC. "This new facility brokered by Marsh will help our partner banks to increase their business with small and midsize firms in emerging markets and enable trade that otherwise would not have happened."

Commenting on the new policy, Evan Freely, Global Leader of Marsh’s Political Risk and Trade Credit Practice, said: “This is a great example of the critical role insurance can play to help stimulate growth, reduce poverty, and improve people’s lives in developing countries. The success of this program underlines Marsh’s continued commitment to delivering innovative solutions to solve our clients’ business-critical needs. We are delighted to be working with IFC to make a real difference to the lives of many in developing countries.”