7th September 2010    21:37

                                                                                                                            .... The Hong Kong Monetary Authority (HKMA) and Bank Indonesia have launched a new cross-border payment-versus-payment (PvP) link between Hong Kong's US dollar real time gross settlement system (RTGS) and Indonesia's rupiah RTGS system..... Changjia Group, a Chinese developer with a focus on high-end residential projects in Shanghai, plans to raise between $500m and $600m in a planned Hong Kong listing in March,.... Emirates Steel is finalising plans to consolidate its debt financing and is looking to raise $1.5bn through limited recourse financing to cover the financing needs of its Phase 1 and Phase 2 expansion projects..... The US federal government is set this week to begin a process that could clear the way for energy companies to do seismic research aimed at locating pockets of oil and natural gas along the Atlantic Coast, interior secretary Ken Salazar told reporters Monday..... The $9bn School Employees Retirement System of Ohio has committed over $80m to two private equity middle market buyout funds, half to Francisco Partners’ Fund III, and half to Mason Wells’ Buyout Fund..... San Francisco based industrial property fund, Terreno Realty Corp. canceled its planned $200m IPO yesterday as Goldman Sachs Group Inc. couldn’t find enough buyers for its sale of 10m shares, thereby extending the slump in US IPOs which began late last year..... As part of a strategy to refocus its retail banking operations on Europe and the Mediterranean, Credit Agricole is mulling to sell its Uruguayan subsidiary, Credit Uruguay Banco, to the local unit of Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA)..... A UK Commons committee has called for the Financial Services Authority to be given new powers to regulate treasury advice to public sector bodies on how to manage cash reserves. The demand is contained in a report on the management of local authority investments in the wake of the risk of losses as a result of the collapse of Icelandic banks..... BATS Europe, the operator of European multilateral trading facility (MTF), has decided to add a pan-European smart order routing service for access to multiple market centres including exchanges, MTFs and dark pools, effective February 15th ..... Bradford & Bingley and Northern Rock, the two UK-based lenders that were the first to receive lifeline from the government, are on the verge of merging their so-called 'bad banks.' The European Commission is expected to clear way for B&B to merge its buy-to-let mortgage loans with Northern Rock Asset Management.... Allianz Global Investors is reportedly planning to launch a global multi-asset fund. The Allianz RCM Dynamic Growth fund will aim to deliver equity-like returns with a lower level of risk..... The UK’s University Superannuation Scheme plans to allocate £1.4bn to fixed income (possibly UK index-linked gilts) and lower its equity allocation,as the scheme’s relatively high equity exposure of 70% of assets resulted in the fund losing about £7bn in 2009..... Russia has paid $1m to foreign banks to settle unresolved debts owed by the Soviet Union under an agreement signed with London club creditors last year who were not part of a 2000 swap of $31.7bn in principle and interest arrears notes for $21.2bn of new dollar debt due in 2010 and 2030.                                                                                



   PUBLISHED:    8th September 2009

JP Morgan joins global trade liquidity program with World Bank and its funding partners in a $1billion facility to stimulate trade in emerging markets.

JP MORGAN JOINS WORLD BANK PROGRAM

J.P. Morgan Treasury Services today announced that it has joined the World Bank and its funding partners to launch a $1 billion funding facility as part of the Global Trade Liquidity Program (GTLP), an initiative that brings together governments, development finance institutions, and commercial banks to support trade in emerging markets. The agreement is designed to stimulate trade growth by extending funded trade financing to J.P. Morgan’s client banks in emerging markets. 

The J.P. Morgan facility is expected to support estimated trade flows of up to $6 billion annually.  Per the agreement, J.P. Morgan will provide 60% or $600 million, and GTLP program partners including development finance institutions and governments will purchase participations for the other 40%, or $400 million in the aggregate, for trade assets averaging a tenor of 270 days. 

"We are pleased to further expand our partnership with World Bank by joining development finance institutions and governments to help bolster trade flows in the regions most affected by recent market instability,” said Daniel Cotti, Global Trade Executive, J.P. Morgan Treasury Services.

The global financial crisis and its effects on banks around the world are anticipated to cause a market gap in trade finance of approximately $100 billion to $300 billion.  With the increase in funding, J.P. Morgan’s regional client banks are better positioned to provide trade financing to importers and exporters in their countries and help bolster country and regional commerce during today’s challenging economic conditions.  The initiative is expected to have significant development impact by increasing funding for trade of consumer goods, intermediate goods, small machinery and commodities demanded by emerging market enterprises.

"We continue to see the impact of the global financial crisis on trade in emerging markets," said Lars Thunell, IFC Executive Vice President and CEO. “The Global Trade Liquidity Program provides an effective solution, bringing together private and public sector partners to ensure that businesses in emerging markets continue to have access to affordable trade finance. We welcome J.P. Morgan's leadership and look forward to working with them on this key initiative."

The GTLP mobilises funds from international finance and development institutions and governments, and leverage through global and regional banks to extend trade finance to importers and exporters in developing countries. Program partners include IFC – a member of the World Bank Group, the African Development Bank, the United Kingdom Department for International Development and the CDC Group, the Department of Finance, Canada and the Ministry for Foreign Affairs, Netherlands, the OPEC Fund for International Development, and the Saudi Fund for Development. Launched in April 2009 the program has raised $2.5 billion to date from donor governments and development finance institutions and $3.6 billion from commercial banks.  The Japan Bank for International Cooperation agreed to provide $1.5 billion through a parallel arrangement with IFC and China has supported GTLP and other trade initiatives through a $1.5 billion private placement with IFC. The GTLP is expected to support up to $50 billion of trade in emerging markets over three years.

Last year J.P. Morgan worked with World Bank’s International Finance Corporation (IFC) to launch an innovative trade finance structure in Asia to help facilitate and boost trade activities in the region.  The funded trade advance, a component of the IFC Global Trade Finance Program, provides cost-effective pre-export and post-import financing to banks.  It combines several trade transactions into a single trade facility and provides an innovative approach to raising funds.  Habib Bank Limited, Pakistan’s largest privately owned bank, was the first to benefit from this solution.



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