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Programme

Frontclear

January 2014 - December 2020

FSD Africa has invested in the Frontier Clearing Fund (FCF) through a subordinated loan note and a grant to the technical assistance facility with the objective of improving interbank liquidity in developing markets.

Frontclear works with interbank markets to improve liquidity and make capital more accessible, therefore driving growth for entrepreneurs. Frontclear offers USD guarantees to enhance the value of local currency assets. Local banks use these guarantees to access the interbank market, a network where banks exchange funds and risk. Guarantees are extended against collateral denominated in local currencies, which are often not considered acceptable collateral for interbank trades. Frontclear’s guarantees are in turn counter-guaranteed by KfW, a AAA-rated German development finance institution.

Targets:

To strengthen financial markets by making it easier for banks to manage risks and by increasing the professionalism and transparency of financial markets in developing countries.