IFC and JBIC to Collaborate to Boost Trade Finance in Developing Countries
Tashkent, Uzbekistan (UzDaily.com) --
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 US$1.5 billion trade finance initiative to be implemented by JBIC. Earlier this month, IFC announced the launch of the US$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 US$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 US$16.2 billion in fiscal 2008, a 34 percent increase over the previous year.