Marsh arranges $500 million policy to help ifc support global trade
growth
New york--(business wire)--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.” about marsh marsh, the world’s leading insurance broker and risk advisor, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. it has around 25,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. marsh is a member of marsh & mclennan companies, a global professional services firm with 52,000 employees worldwide and annual revenue exceeding $10 billion, which is also the parent company of guy carpenter, the risk and reinsurance specialist; mercer, the provider of hr and related financial advice and services; and oliver wyman, the management consultancy. its stock (ticker symbol: mmc) is listed on the new york, chicago and london stock exchanges. follow marsh on twitter @marsh_inc. about ifc ifc, a member of the world bank group, is the largest global development institution focused exclusively on the private sector. we help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. in fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. for more information, visit www.ifc.org.
