Funds Begin to Flow to Importers and Exporters under Global Trade Liquidity Program
Geneva, July 6, 2009—Donors formally committed funds today to the $50 billion Global Trade Liquidity Program (GTLP), triggering the first disbursements to importers and exporters in developing countries to help reverse the decline in trade resulting from the economic crisis.
GTLP funds will start to disburse through the first four participating banks providing trade finance through a network of more than 500 banks in over 70 developing countries across all regions. Program partners and banks, which have together mobilized more than $6 billion, gathered in Geneva today at an event hosted by World Trade Organization Director-General Pascal Lamy, African Development Bank President Donald Kaberuka and World Bank Group President Robert B. Zoellick to mark the launch of the GTLP following its announcement at a meeting of the Group of 20 nations in April.
Speaking at the event, which was held as part of the World Trade Organization’s Second Global Review of Aid for Trade, Lamy said, “At the G20 Summit in London, leaders pledged to support trade finance. I am glad to show in the context of the Global Aid for Trade Review that we are on track. This is vital for developing countries, many of which have seen trade decrease for lack of availability and affordability of trade finance.”
Zoellick said, “As a result of the concerted efforts of the partner governments, development finance institutions, and banks, GTLP has quickly moved from concept to reality and will start to provide significant support for trade in developing countries.”
Kaberuka said, “The African Development Bank has a central role to play in helping the continent through the current financial crisis. The Trade Finance Initiative is part of the response of the African Development Bank to the crisis. It will help African commercial banks and Development Finance Institutions to use ADB resources, to support and boost trade finance operations. The Bank has allocated USD 1 billion for the Trade Finance Initiative, of which USD 500 million is allocated to the GTLP. We will not spare any effort to help Africa through these uncertain economic times and for the continent to continue developing as fast as it has, before the start of the financial crisis”
Program partners include the United Kingdom Department for International Development and the CDC Group, the Department of Finance, Canada and the Ministry for Foreign Affairs, Netherlands, the Japan Bank for International Cooperation, the OPEC Fund for International Development, and the Saudi Fund for Development. The first four banks participating in the program are Standard Chartered Bank, Citigroup, Rabobank Nederland, and Standard Bank of South Africa.
Global trade is expected to decline 10 percent in 2009, marking the biggest drop in at least 80 years. Developing countries, which are particularly dependent on trade, are especially vulnerable. GTLP is designed to reduce that vulnerability by raising funds from international finance and development institutions, governments, and banks, and by working through global and regional banks to extend trade finance to importers and exporters.
- For more information about the World Trade Organization visit www.wto.org. Media contact: Josep Bosch, Tel: +41-22-739-5681 Email: Josep.Bosch@wto.org
About GTLP Partners
- For more information about the African Development Bank. Media contact: Onike Nicol-Houra, Tel: +21671103227, Email: email@example.com
- For more information about the Department of Finance, Canada visit www.fin.gc.ca. Media contact: Jack Aubry, Tel: +613-996-8080
- For more information about the CDC Group visit www.cdcgroup.com. Media contact:Miriam de Lacy, Tel +44 207 963 4711, Email: firstname.lastname@example.org
- For more information about Citigroup visit www.citigroup.com. Media contact: Nina Das, Tel: +212-816-9267, Email: Nina.Das@citi.com
- For more information about the UK’s Department for International Development visit www.dfid.gov.uk. Media contact: Ben Price, Tel: +44 0207 215 3377, Email: email@example.com
- For more information about Rabobank visit www.rabobank.com. Media contact: Mr. Rene Loman, Tel: + 31 30 216 26 22, Email: firstname.lastname@example.org.
- For more information about Standard Bank visit www.standardbank.co.za. Media contact: Erik Larsen, Tel: +27 83 252 7678, Email: Erik.Larsen@standardbank.co.za
- For more information about Standard Chartered Bank visit www.standardchartered.com. Media contact: Valerie Tay, Tel: +65 6725 7792, Email: Valerie.Tay@sc.com
- For more information about the World Bank Group visit www.worldbank.org, www.miga.org, and www.ifc.org. Media contact: Lotte Pang, Tel: +12027584290, Email: LPang@ifc.org