Washington, D.C./London, October 17,
2011—The World Bank Group and the Berne Union have agreed to create
two working groups to address the challenging environment for global trade
and investment flows, and to coordinate their responses to proposed changes
in the regulatory treatment of financial institutions’ exposure to trade
and export finance.
Amid growing economic uncertainty, financial institutions are expected
to face constraints in meeting the trade and export finance needs of developing
countries, especially for longer credit terms. There is an urgent need
to develop innovative, sustainable mechanisms to maintain financing for
trade and investment in emerging markets.
“Trade is an engine for global economic growth and helps boost development
in emerging markets,” said World Bank Group President Robert B. Zoellick.
“We are partnering with Berne Union to promote trade and investment and
support global, sustainable, and inclusive growth.”
Angus Armour, President of the Berne Union, said: “The World Bank Group
and the Berne Union have tremendous potential to support global trade and
investment by aligning our efforts and resources, including the significant
capacity of the Berne Union members."
The World Bank Group and the members of the Berne Union, an international
association for the export credit and investment insurance industry, believe
there is a significant opportunity to harness their complementary capabilities.
Members of the Berne Union annually support about 10 percent of global
trade and investment through export credit and investment insurance. That
capacity to support trade and export finance proved resilient through the
global financial crisis of 2008-09.
The World Bank Group supports trade as a platform for sustainable growth
and development. IFC, a member of the World Bank Group and the largest
global development institution focused exclusively on the private sector,
has played a leading role in supporting trade flows to emerging markets
through its trade finance programs.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding
and knowledge for developing countries. It comprises five closely associated
institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA), which together
form the World Bank; the International Finance Corporation (IFC); the Multilateral
Investment Guarantee Agency (MIGA); and the International Centre for Settlement
of Investment Disputes (ICSID). Each institution plays a distinct role
in the mission to fight poverty and improve living standards for people
in the developing world. For more information, please visit www.worldbank.org,
About the Berne Union
The Berne Union (International Union of Credit & Investment Insurers)
is the leading international association for the export credit and investment
insurance industry. It works for cooperation and stability in cross-border
trade by supporting the international acceptance of sound principles in
export credits and foreign investments and by providing a forum for professional
exchange among its members. For more information, please visit www.berneunion.org.uk.