StanChart sees global fund boost

By Katie Reid

GENEVA (Reuters) - Asia-focussed bank Standard Chartered (STAN.L) said its core banking business would be boosted by its participation in a new global financing programme providing liquidity for poor-country exporters.

"The fund will allow us to do a lot more. We will be able to help companies where they need it most," Karen Fawcett, senior managing director at London-listed Standard Chartered told Reuters on Monday after the launch of a facility that aims to unlock $50 billion (30.8 billion pounds) in trade.

The Global Trade Liquidity Program raises funds from international development bodies, governments and banks and filters the money to developing-country importers and exporters.

"The international organisations will provide some risk mitigation and we will be able to provide larger (credit) lines," Fawcett said. Standard Chartered operates in 77 countries, of which 45 are emerging markets.

Global trade is seen falling 10 percent in 2009, the biggest drop in 80 years, with developing countries particularly hard hit, according to the World Trade Organisation.

This is because of a drying up of trade financing with the credit crunch as well as the economic crisis that has prompted consumers across the world to stop spending.

"The money should benefit 30,000 customers and create $15 billion of incremental trade over the next three years," said Tan Kah Chye, Standard Chartered's managing director of transaction banking and global head of trade finance.

Infrastructure and commodities companies as well as the makers of white goods such as televisions and DVD players were likely to benefit most from the $1.25 billion Standard Chartered is contributing to the global financing programme, Tan said.

"This will cut across all industries," he said, adding there were opportunities in Africa, China and South Asia.

The first four banks involved in the programme are Standard Chartered, Citigroup (C.N), Rabobank RABON.UL and Standard Bank of South Africa.

Standard Chartered -- one of the top three trade banks in the world alongside HSBC (HSBA.L) and Citigroup -- already finances $500-$700 billion a year, Tan said.

(Editing by Dan Lalor)