A new $532m trade credit policy has been brokered by Marsh for the International Finance Corporation (IFC), a member of the World Bank Group, to help emerging markets see increased flows of vital imports and exports.

The new policy, underwritten by nine leading insurers, enables IFC to expand capacity under its Global Trade Finance Program (GTFP), which guarantees emerging market trade transactions.

The policy protects IFC against the risk of default by a local bank client and initially covers 50 local banks in 30 countries, marking the first time that IFC has secured insurance to cover and expand its trade credit facilities.

IFC director of Short-Term Finance Georgina Baker said this new facility brokered by Marsh will help their partner banks to increase their business with small and midsize firms in emerging markets and enable trade that otherwise would not have happened.

Marsh Political Risk and Trade Credit Practice global leader Evan Freely said this is a great example of the critical role insurance can play to help stimulate growth, reduce poverty, and improve people’s lives in developing countries.

"The success of this program underlines Marsh’s continued commitment to delivering innovative solutions to solve our clients’ business-critical needs. We are delighted to be working with IFC to make a real difference to the lives of many in developing countries," Freely said.