Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12
The International Finance Corporation (IFC) introduced the Global Trade Finance Program (GTFP) in 2005 is to 'support the extension of trade finance to underserved clients globally.' The program has since expanded rapidly, and its authorized exposure ceiling was increased in three stages f...
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Washington, DC: World Bank
2013
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| Online Access: | http://hdl.handle.net/10986/15769 |
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okr-10986-15769 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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en_US |
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access to finance access to information Actual Financial Performance Advisory Services agricultural products approval process Bank Credit Bank Financing bank relationships Bank Risk banking crisis banking regulation banking sector banking supervision banking system banking systems Banks beneficiaries beneficiary borrowing capital allocation capital gains capital requirements cash deposits cash flow CC Chamber of Commerce client base collateral collateral requirements Commercial Bank commercial banks commodities country risk country risks credit agency credit growth credit limit credit lines credit quality credit rating Credit Risk Credit Transaction creditworthiness debt debt crisis debts default rate defaults deposits Developing Countries developing country development bank development finance development finance institutions direct loans due diligence economic crises economic crisis emerging market emerging market countries emerging market portfolio emerging market trade emerging markets entry point equipment equity investments export credit exporter exposure farmers Finance Corporation Finance Initiatives finance product finance products financial challenges financial crisis financial instability financial institutions financial intermediaries Financial Intermediation financial markets Financial Performance financial sector financial sector development financial systems financing of trade foreign bank Global Risks Global Trade Income income group income level income statements individual markets information sharing information system information technology instrument insurance intangible international bank international banks International Development International Finance International Trade investment activities investment volume legal agreement less developed markets Letter of Credit letters of credit lines of credit Liquidity liquidity constraints loan loan recovery loan size local bank local banks long-term finance long-term investment Long-Term Investments long-term loans loss statement low-income countries Low-income country macroeconomic instability macroeconomic risks market conditions market demand market levels market players market trade market volatility maturities MDB microenterprises middle-income countries Middle-income country Monetary Fund Multilateral Development Multilateral Development Banks net profit new market opportunity costs particular countries partner banks payment obligation performance measures political risk political uncertainty poor credit Portfolio Portfolio Management portfolio performance pricing practices private capital private credit private sector development profitability prudential regulations rapid growth regional banks regulatory constraints reputation return returns risk aversion Risk Mitigation risk perceptions risk profile risk sharing risk taking risk weight savings short-term trade finance sovereign debt statistical analysis subordinated debt Supply Chain Telecommunications trade credit Trade Finance trading transaction price transparency Warehouse warrants weak banking systems working capital world economy |
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access to finance access to information Actual Financial Performance Advisory Services agricultural products approval process Bank Credit Bank Financing bank relationships Bank Risk banking crisis banking regulation banking sector banking supervision banking system banking systems Banks beneficiaries beneficiary borrowing capital allocation capital gains capital requirements cash deposits cash flow CC Chamber of Commerce client base collateral collateral requirements Commercial Bank commercial banks commodities country risk country risks credit agency credit growth credit limit credit lines credit quality credit rating Credit Risk Credit Transaction creditworthiness debt debt crisis debts default rate defaults deposits Developing Countries developing country development bank development finance development finance institutions direct loans due diligence economic crises economic crisis emerging market emerging market countries emerging market portfolio emerging market trade emerging markets entry point equipment equity investments export credit exporter exposure farmers Finance Corporation Finance Initiatives finance product finance products financial challenges financial crisis financial instability financial institutions financial intermediaries Financial Intermediation financial markets Financial Performance financial sector financial sector development financial systems financing of trade foreign bank Global Risks Global Trade Income income group income level income statements individual markets information sharing information system information technology instrument insurance intangible international bank international banks International Development International Finance International Trade investment activities investment volume legal agreement less developed markets Letter of Credit letters of credit lines of credit Liquidity liquidity constraints loan loan recovery loan size local bank local banks long-term finance long-term investment Long-Term Investments long-term loans loss statement low-income countries Low-income country macroeconomic instability macroeconomic risks market conditions market demand market levels market players market trade market volatility maturities MDB microenterprises middle-income countries Middle-income country Monetary Fund Multilateral Development Multilateral Development Banks net profit new market opportunity costs particular countries partner banks payment obligation performance measures political risk political uncertainty poor credit Portfolio Portfolio Management portfolio performance pricing practices private capital private credit private sector development profitability prudential regulations rapid growth regional banks regulatory constraints reputation return returns risk aversion Risk Mitigation risk perceptions risk profile risk sharing risk taking risk weight savings short-term trade finance sovereign debt statistical analysis subordinated debt Supply Chain Telecommunications trade credit Trade Finance trading transaction price transparency Warehouse warrants weak banking systems working capital world economy Independent Evaluation Group Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 |
| description |
The International Finance Corporation (IFC) introduced the Global Trade Finance Program (GTFP) in 2005 is to 'support the extension of trade finance to underserved clients globally.' The program has since expanded rapidly, and its authorized exposure ceiling was increased in three stages from $500 million in 2005 to $5 billion in 2012. In FY12, the GTFP accounted for 39 percent of total IFC commitments, 53 percent of its commitments in Sub Saharan Africa, and 48 percent of its commitments in Latin America and the Caribbean. The Independent Evaluation Group (IEG) recommends that IFC (i) continue to strengthen the GTFP's focus in areas where additionally is high and increase the share of the program in high-risk markets and where the supply of trade finance and alternate risk-mitigation instruments are less available; (ii) adopt additional methods of reporting volume that can reflect the distinct nature of trade finance guarantees; (iii) refine the means by which GTFP profitability is monitored and reported; (iv) review the costs and benefits of the current monitoring and evaluation framework; (v) ensure that a transparent process is in place to govern cases of covenant breach; and (vi) enhance the program's ability to meet the demand for coverage of longer-term trade finance tenors. |
| format |
Publications & Research :: Publication |
| author |
Independent Evaluation Group |
| author_facet |
Independent Evaluation Group |
| author_sort |
Independent Evaluation Group |
| title |
Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 |
| title_short |
Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 |
| title_full |
Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 |
| title_fullStr |
Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 |
| title_full_unstemmed |
Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 |
| title_sort |
evaluation of the international finance corporation's global trade finance program, 2006-12 |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/15769 |
| _version_ |
1764431094659153920 |
| spelling |
okr-10986-157692021-04-23T14:03:22Z Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12 Independent Evaluation Group access to finance access to information Actual Financial Performance Advisory Services agricultural products approval process Bank Credit Bank Financing bank relationships Bank Risk banking crisis banking regulation banking sector banking supervision banking system banking systems Banks beneficiaries beneficiary borrowing capital allocation capital gains capital requirements cash deposits cash flow CC Chamber of Commerce client base collateral collateral requirements Commercial Bank commercial banks commodities country risk country risks credit agency credit growth credit limit credit lines credit quality credit rating Credit Risk Credit Transaction creditworthiness debt debt crisis debts default rate defaults deposits Developing Countries developing country development bank development finance development finance institutions direct loans due diligence economic crises economic crisis emerging market emerging market countries emerging market portfolio emerging market trade emerging markets entry point equipment equity investments export credit exporter exposure farmers Finance Corporation Finance Initiatives finance product finance products financial challenges financial crisis financial instability financial institutions financial intermediaries Financial Intermediation financial markets Financial Performance financial sector financial sector development financial systems financing of trade foreign bank Global Risks Global Trade Income income group income level income statements individual markets information sharing information system information technology instrument insurance intangible international bank international banks International Development International Finance International Trade investment activities investment volume legal agreement less developed markets Letter of Credit letters of credit lines of credit Liquidity liquidity constraints loan loan recovery loan size local bank local banks long-term finance long-term investment Long-Term Investments long-term loans loss statement low-income countries Low-income country macroeconomic instability macroeconomic risks market conditions market demand market levels market players market trade market volatility maturities MDB microenterprises middle-income countries Middle-income country Monetary Fund Multilateral Development Multilateral Development Banks net profit new market opportunity costs particular countries partner banks payment obligation performance measures political risk political uncertainty poor credit Portfolio Portfolio Management portfolio performance pricing practices private capital private credit private sector development profitability prudential regulations rapid growth regional banks regulatory constraints reputation return returns risk aversion Risk Mitigation risk perceptions risk profile risk sharing risk taking risk weight savings short-term trade finance sovereign debt statistical analysis subordinated debt Supply Chain Telecommunications trade credit Trade Finance trading transaction price transparency Warehouse warrants weak banking systems working capital world economy The International Finance Corporation (IFC) introduced the Global Trade Finance Program (GTFP) in 2005 is to 'support the extension of trade finance to underserved clients globally.' The program has since expanded rapidly, and its authorized exposure ceiling was increased in three stages from $500 million in 2005 to $5 billion in 2012. In FY12, the GTFP accounted for 39 percent of total IFC commitments, 53 percent of its commitments in Sub Saharan Africa, and 48 percent of its commitments in Latin America and the Caribbean. The Independent Evaluation Group (IEG) recommends that IFC (i) continue to strengthen the GTFP's focus in areas where additionally is high and increase the share of the program in high-risk markets and where the supply of trade finance and alternate risk-mitigation instruments are less available; (ii) adopt additional methods of reporting volume that can reflect the distinct nature of trade finance guarantees; (iii) refine the means by which GTFP profitability is monitored and reported; (iv) review the costs and benefits of the current monitoring and evaluation framework; (v) ensure that a transparent process is in place to govern cases of covenant breach; and (vi) enhance the program's ability to meet the demand for coverage of longer-term trade finance tenors. 2013-09-13T17:47:49Z 2013-09-13T17:47:49Z 2013-08-27 978-0-8213-9980-4 10.1596/978-0-8213-9980-4 http://hdl.handle.net/10986/15769 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research |