Geneva, Switzerland, May 6, 2009—IFC,
a member of the World Bank Group, and the Global Network of Exim Banks
and Development Finance Institutions (G-NEXID) today agreed to work together
to reduce the impact of the global financial crisis on importers and exporters
in developing countries.
The partners will seek to boost trade
in capital goods and services, an area of international trade significantly
impaired by the current crisis.
Under an agreement signed today
in Geneva, IFC and G-NEXID will work to develop effective and sustainable
financing solutions to assist importers and exporters in developing countries
and enhance the capacity of G-NEXID members to provide services and financing.
G-NEXID and IFC also agreed to share information on trade-finance issues,
particularly on trade between emerging-market countries.
“There is a need for immediate action from the international community
to address the severe constraints imposed on international trade by the
global financial crisis,” said T.C. Venkat Subramanian, Honorary President
of G-NEXID. “IFC and G-NEXID recognize the importance of working together
to provide creative and collaborative solutions to the problems in international
trade finance that will serve the common interest of all stakeholders.”
Lars Thunell, IFC Executive Vice President and CEO, said: “The current
situation in international trade requires a greater level of cooperation
between market participants in these extraordinary times. Partnership is
essential and we are pleased to work with G-NEXID to support businesses
in emerging markets and serve the longer-term goal of promoting trade between
emerging markets through targeted financing programs.”
IFC recently announced the launch of the Global Trade Liquidity Program,
a coordinated global initiative that brings together governments, development
finance institutions, and private sector banks to support trade in developing
markets to address the shortage of trade finance resulting from the global
financial crisis. With targeted initial commitments of $5 billion from
public sector sources, the program should be able to support up to $50
billion of trade.
The IFC Global Trade Finance Program,
which was tripled from $1 billion to $3 billion at the end of 2008 in response
to the financial crisis, provides unfunded support in the form of guarantees
for trade transactions in emerging markets.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
The Global Network of Exim Banks and Development Finance Institutions was
initiated by UNCTAD in June 2004 to support trade between developing countries
and investment co-operation by encouraging bilateral and multilateral agreements
among Export-Import (EXIM) Banks and development finance institutions (DFIs)
based in developing countries. Members of G-NEXID are able to learn from
each other and share effective practices for entering new markets, financing
non-traditional goods and services, and establishing risk-sharing methods
for investments. For more information visit www.gnexid.org.