The World Bank Group’s Response to the Crisis
309
In addition to delivering access to trade credit, GTFP continued to provide trade advisory services to enhance the functioning of trade and the training of the trade professionals globally. During the crisis, the advisory program expanded its course offerings to respond to the heightened risk environment by adding modules in risk management and KYC compliance. In the midst of the crisis in 2009, the program provided its first training for Iraqi bankers to help this emerging nation rejoin international trade networks and promote growth of the Iraqi economy. In 2010, GTFP facilitated 58 trade training courses in 34 countries, reaching more than 1,880 bankers. The Global Trade Liquidity Program Against the backdrop of a world financial system in turmoil, IFC and development finance institutions, as part of the G-20 mandate, began exploratory discussions in early 2009 with global banks on how to work together to help keep trade flowing worldwide. These initial talks culminated in the GTLP initiative. GTLP plays a stabilizing and catalytic role in trade finance. Phase 1 of this program—launched July 2009 at the second annual World Trade Organization (WTO) Aid for Trade Global Review in Geneva—has focused on a collaborative crisis response to rapidly mobilize and channel funding to support emerging markets’ trade finance. GTLP is the first global solution of its kind in the trade finance business. It was implemented through a partnership among development finance institutions (DFIs), bilateral and multilateral organizations, and governments to mobilize temporary funding targeted to support trade finance in the developing world. The IFIs, bilateral and multilateral organizations, and governments that have partnered with IFC for GTLP include the U.K. Department for International Development, the U.K. Commonwealth Development Corporation, the Japanese Bank for International Cooperation (JBIC), the Netherlands Ministry of Foreign Affairs, the African Development Bank, the Organization of Petroleum Exporting Countries’ Fund for International Development (OFID), the Saudi Fund for Development, Canada’s Department of Finance, the Swedish International Development Cooperation Agency (Sida), and China’s Ministry of Finance (indirect support through private placement of IFC bonds). IFC acts as agent on the program partners’ behalf and partners with global, regional, or local banks (utilization banks, or UBs) to channel liquidity to the banks in two ways: (a) a 40 percent risk funded participation, and (b) short-term loans. The UBs that have partnered with GTLP include Standard Chartered Bank, Citibank, Commerzbank, JPMorgan Chase, Standard Bank South Africa, Afreximbank, and Rabobank.