The International Finance Corporation (IFC) and Standard Chartered have announced a partnership to expand lending in local currencies to businesses in emerging markets. This collaboration aims to increase access to finance for small and medium-sized enterprises (SMEs) and promote economic development in these regions.
Through this partnership, IFC will provide a guarantee to Standard Chartered, allowing the bank to lend more to businesses in local currencies. This will help mitigate the risks associated with lending in emerging markets, where currency fluctuations can be a significant challenge. The guarantee will also enable Standard Chartered to offer more competitive interest rates and longer loan tenors to its clients.
The partnership will focus on supporting businesses in sectors such as trade finance, construction, and manufacturing. These sectors are critical to the economic growth and development of emerging markets, and accessing finance is often a significant challenge for businesses operating in these areas.
By lending in local currencies, businesses will be able to avoid the risks associated with foreign currency borrowing, which can be a significant burden. This will also help to promote financial inclusion and support the development of local capital markets.
The IFC and Standard Chartered partnership is part of a broader effort to increase access to finance for businesses in emerging markets. The IFC has been working to promote the use of local currency lending as a way to reduce the risks associated with foreign currency borrowing and to support the development of local capital markets.
Standard Chartered has a significant presence in emerging markets and has been working to increase its lending to businesses in these regions. The bank has a strong track record of supporting SMEs and has developed a range of financial products and services tailored to their needs.
The partnership between IFC and Standard Chartered is expected to have a significant impact on businesses in emerging markets. By increasing access to finance and promoting the use of local currency lending, the partnership will help to support economic growth and development in these regions. It will also help to reduce the risks associated with foreign currency borrowing and promote financial inclusion. Overall, the partnership is an important step forward in supporting the development of businesses in emerging markets and promoting economic growth and prosperity.