Washington, D.C., April 24, 2009—IFC,
a member of the World Bank Group, and the Japan Bank for International
Cooperation (JBIC) today agreed to work together to boost financing for
trade, which has been hurt by the global financial crisis and will be essential
for a lasting economic recovery.
IFC and JBIC signed an agreement to
coordinate efforts to facilitate trade in developing markets. The Japanese
government recently announced a $1.5 billion trade finance initiative to
be implemented by JBIC. Earlier this month, IFC announced the launch of
the $5 billion Global Trade Liquidity Program, which brings together governments,
development finance institutions, and private sector banks to support what
could be as much as $50 billion in trade.
Hiroshi Watanabe, JBIC President and
CEO, said: “JBIC is committed to addressing the current global financial
crisis by drawing on a variety of financial tools, including our trade
finance facility. We are pleased to strengthen our relationship with IFC
and work together to reduce the impact of the crisis on global trade.”
Lars Thunell, IFC Executive Vice President
and CEO, said: “Japan has been a key partner in many of our crisis response
initiatives. This partnership will be particularly important in Asia, where
thousands of exporters have been hit hard by the contraction in trade finance.”
Global trade has contracted sharply
as financing dried up after the crisis began. The scarcity of trade financing
has posed a particular economic risk to low- and middle-income countries,
for whom trade accounts for about 70 percent of gross domestic product.
IFC, working with its partners, has sharply increased its trade-financing
efforts over the last year.
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.