IFC launched several targeted Initiatives to help our clients access financing during the global financial and economic crisis.
Because of CSLLM's successful track record managing 3rd party investors through its B Loan management function, CSLLM reviewed the structures of the Initiatives and determined it had the capacity to provide Middle Office support services to the Global Trade Liquidity Program (GTLP).
As of June 30, 2011, the GTLP commitments managed by CSLLM, on behalf of the Funders/Partners, totalled US$1.23 billion (11 projects and 7 Lenders).
The Global Trade Liquidity Program's (GTLP) main objective is to stimulate private sector trade finance across a wide array of developing and emerging economies by providing funding for trade finance transactions through regional banks.
In order for IFC to maximize its developmental reach, particularly with respect to IDA countries, IFC includs in this Program global and regional banks (Utilization Banks or UBs) with wide trade networks among exporters and importers, and a strong commitment to trade finance. To this end, UBs are selected based on their geographic focus, reach, and commitment to sustain and increase, inter alia, their trade operations to facilitate regional coverage and stimulus.
CSLLM is providing a complementary agency role for the GTLP Funders/Partners, as is done for B Loans. Similar to the B loans, CSLLM acts as agent for the GTLP Funders/Partners over the life of the loans. This includes reporting, waivers and amendments, and disbursements and payments. This facilitates a more coordinated and effective approach to the management of these loans, helping to reduce a burden to our Borrowers and providing increased efficiency among a syndicate of multiple Funders/Partners.
CSLLM acts as agent for the GTLP Funders/Partners of wich it has the following key functions:
Reporting: Distribution of all reports to Funders/Partners, according to the reporting requirements.
Waivers and amendments: Coordination of waivers with the borrowers and the lenders and communication with GTLP Operations to provide assistance, when needed.
Payments: Payment of fees, disbursements, and repayments of principal and interest through intermediary bank accounts.