MICROCAPITAL BRIEF: International Finance Corporation (IFC), Wells Fargo Partner To Launch $200m Facility to Increase Trade Finance for Banks in Emerging Markets, Half in Middle East, North Africa

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and Wells Fargo, an American financial services provider, recently teamed up to launch a USD 200 million, five-year risk-sharing facility to support the trade financing needs of banks in emerging countries with the aim to propel economic growth and job creation. Half of the portfolio is set to target banks in the Middle East and North Africa.

The facility will operate through IFC’s Global Trade Liquidity Program, which was launched in 2009 with the aim of increasing the flow of trade funds to emerging markets during times of scarce trade liquidity. Since its inception, the program reportedly has helped banks, facilitating channeled approximately USD 20 billion in trade volume.

Charles Silverman, head of Wells Fargo’s Global Financial Institutions Group, said “this agreement will provide additional funding through our financial-institution customers in the Middle East and North Africa in an effort to improve economic conditions. By working with IFC and local banks, we are helping increase trade activity and food security and create jobs [1].”

As of May 2011, Wells Fargo reported USD 1.3 trillion in total assets.

By Amira Berrada, Research Associate

About Wells Fargo: Wells Fargo and Company is a financial services firm that provides banking, insurance, investments, mortgage and consumer finance through 10,000 stores, 12,000 automated teller machines (ATMs) and the internet across North America and internationally. As of May 2011, Wells Fargo reported USD 1.3 trillion in total assets.

About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

Sources and Additional Resources:

[1] http://www.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/33275324CACEC379852579DC0067B982

MicroCapital.org story, March 5, 2012, “MICROCAPITAL BRIEF: European Union Funds International Finance Corporation (IFC) to Support Microfinance Institution Arvand’s Agricultural Loans in Tajikistan” https://www.microcapital.org/microcapital-brief-european-union-funds-inte

MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises” https://www.microcapital.org/microcapital-brief-international-finance-cor

MicroCapital.org story, July 16, 2010, “MICROCAPITAL BRIEF: $1m Investment from Wells Fargo Helps Grameen America Open Microfinance Bank in San Francisco, Its Fifth in the US” https://www.microcapital.org/microcapital-brief-1m-investment-from-wells-

MicroCapital Universe Profile for Wells Fargo: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Wel

MicroCapital Universe Profile for International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.