Since February 2022, the International Finance Corporation's (IFC's) Global Trade Finance Program (GTFP)has facilitated over US$77 million in trade finance guarantees for banks in Ukraine to enable imports of essential goods.

The programme offers confirming banks partial or full guarantees covering payment risk on banks in emerging markets for trade related transactions.

These guarantees are transaction-specific and may be evidenced by a variety of underlying instruments, including letters of credit (L/Cs), trade-related promissory notes, accepted drafts, bills of exchange, guarantees, bid and performance bonds and advance payment guarantees.

Essential goods

Imports to Ukraine of essential goods guaranteed under the GTFP since Russia invaded the country have included diesel and natural gas for tractors and combine harvesters to cultivate land during the agricultural seasons, critical to domestic food security and continued exports.

In addition, the programme supported exports of Ukrainian grain, corn, sunflower seeds, and oil to other countries through its local partner banks.

Imports and exports

In response to the crisis in Ukraine, IFC announced a support package of up to US$2 billion for the country's private sector.

Critically for the Ukrainian economy, the GTFP component in this package allowed them to facilitate cross border trade finance operations to local importers and exporters.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.