The project is to establish the Global Trade Finance Program or “GTFP”, a $500 million trade program, that will provide IFC with a flexible platform from which to support the extension of trade finance to under-served clients globally. The objective is for the Corporation to be in position to quickly supplement liquidity where and when it is needed in the system, assist local banks in every region in developing credit relationships with international commercial banks and to arrange training and technical assistance wherever most needed to improve their trade finance capabilities. The program will respond to on-going demand from clients for the Corporation to support trade-related business, both during normal market conditions as well as during periods of liquidity constraints. The inherent flexibility of the proposed framework will permit IFC to respond globally to shifting market and client needs without implementation delays or extra cost. The GTFP will be built up gradually to ensure diversification of the portfolio. Full utilization is anticipated in the fourth year of operations, however, since this is a new program, the rate of growth could be faster or slower. The program will add significant value to local banks, importers and exporters by creating a comprehensive global network of trade finance providers that can be mobilized to extend efficient, responsive, client-driven service. Trade between countries with a limited bi-lateral trade history can be difficult since financial institutions are risk-averse when there is no track record of successful transactions. Hence easy access to a large global network of banks is fundamental to the success of trade finance. Through the GTFP, the Corporation will enhance trade finance capacity in local banks, both by facilitating trade credit as well as through technical assistance. The training of local staff in the practice of trade finance is an important component of this program. In most markets, this will have the greatest net effect on SMEs which are most reliant on the support of local banks as foreign banks typically focus on the larger transactions and top-tier commercial entities. The GTFP will guarantee amounts as low as $10,000 to ensure the SME sector is well supported.