JP Morgan Chase, a full-service provider of cash management, trade finance and treasury solutions, has joined the International Finance Corporation’s (IFC) Global Trade Finance Program.

Through the programme, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks.

JP Morgan Chase is among the first banks to join the programme, which is aimed at supporting trade with emerging markets worldwide and promoting flows of goods and services between developing countries.

“We are pleased to be working with IFC and to be a participant in the Global Trade Finance Program, which actively promotes global trade in Africa, Asia, Latin America, and the Middle East,” says Stacey Facter, global head of trade credit insurance for the Treasury Services business of JP Morgan Chase. “With an already robust emerging markets business in place, we will now be able to develop our exposure in these markets even further through the trade channel established by the IFC programme.”

The Global Trade Finance Program offers confirming banks partial or full guarantees to cover payment risk on banks in emerging markets. These guarantees are transaction-specific and apply to transactions involving: letters of credit; trade-related promissory notes and bills of exchange; bid and performance bonds; and advance payment guarantees or credits to suppliers. In each case, the guarantees are in connection with the export or import of goods, commodities or services from or to the country of the bank obligor. The IFC programme will allow JP Morgan Chase to extend its geographical reach further into emerging markets and will facilitate broader risk coverage for challenging trade transactions.

“IFC’s Global Trade Finance Program is a good fit for confirming banks like JP Morgan Chase that want to mitigate risk and finance their trade transactions through the channels created by our client network,” says Bonnie Galat, head of marketing and sales for the programme at IFC. “The programme can also help developing countries increase their share of global trade.”