HSBC has become the latest bank to sign a $1bn risk-sharing facility with the International Finance Corporation, to help address a trade finance gap in emerging markets.
The facility aims to improve trade finance accessibility in the region. It’s the first agreement the IFC has signed with a Southeast Asian bank under its global trade liquidity programme.
The global trade finance gap is widening due to geopolitical disruptions, supply chain shifts and de-risking, among other factors. This is impacting SMEs in emerging markets, but there are opportunities to close it.