April 2, 2009—The World Bank Group has launched a coordinated global initiative that brings together governments, development finance institutions, and private sector banks to support trade in developing markets and address the shortage of trade finance resulting from the global financial crisis.
The Global Trade Liquidity Program will begin operations in May, channeling much-needed funds to back trade in developing countries. With targeted initial commitments of $5 billion from public sector sources, the program should be able to support up to $50 billion of trade. It raises funds from international finance and development institutions, governments, and banks, and it works through global and regional banks to extend trade finance to importers and exporters in developing countries.
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"We welcome the tremendous degree of cooperation
between public and private sector institutions that allows us to
come together to launch the Global Trade Liquidity Program
for developing countries. I welcome G-20 support for this timely
and targeted solution that will provide trade finance
to support businesses across developing markets."
—Robert B. Zoellick, President, World Bank Group
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The program has received commitments of $1 billion from IFC. The U.K. government, through its development finance institution CDC, intends to make a contribution of up to £300 million. The Canadian government announced it will commit $200 million. The Dutch government will commit $50 million.
For more information, read the
related press release or visit
www.ifc.org/financialcrisis.
