Donors Commit Funds To Help Promote Trade In Developing Countries
Donors formally committed funds on Monday to a 50 billion US dollar (265 milliarder DKR) Global Trade Liquidity Program (GTLP), triggering the first disbursements to importers and exporters in developing countries to help reverse the decline in trade resulting from the economic crisis.
GTLP funds will start to disburse through the first four participating banks providing trade finance through a network of more than 500 banks in over 70 developing countries across all regions, the World Bank said in a statement released in Geneva.
Program partners and banks, which have together mobilized more than 6 billion dollar, gathered in Geneva on Monday at an event hosted by World Trade Organization (WTO) Director-general Pascal Lamy and World Bank Group President Robert Zoellick, to mark the launch of the GTLP following its announcement at a meeting of the G20 nations in April.
Speaking at the launch in Geneva, Zoellick said the program would provide “significant support for trade in developing countries”.
– Companies often used to finance trade from their own retained earnings, which may have been used up during the crisis, said Bernard Hoekman, Director of the World Bank’s international trade department.
The program is kicking off with more than 6 billion dollar in new funds, 2,5 billion from the World Bank, the African Development Bank and other donors, and the rest from the commercial banks – Standard Chartered, Citigroup, Rabobank and Standard Bank of South Africa.
More funds would be forthcoming shortly, Zoellick predicted.
Asia-focused bank Standard Chartered Plc said its core banking business would be boosted by its participation in a new global financing program 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 said Monday after the launch of a facility that aims to unlock 50 billion in trade.
– The international organisations will provide some risk mitigation and we will be able to provide larger (credit) lines, Fawcett said.
Kilde: www.worldbank.org
