denotes premium content | Jan 10 2009 
News
posted 1 Dec 2008
People & places
IFC to double trade finance support programme
International Finance Corporation (IFC), the investment arm of the World Bank, is doubling its Global Trade Finance Program from $1.5bn to $3bn to help banks in in 66 countries to continue supporting international trade.
With an average tenor of six months, the IFC expects the programme to support about $18bn of trade over the next three years. It is one of a number of packages intended to help developing countries to better deal with the credit crunch.
The IFC is also launching a global equity fund to recapitalise distressed banks in these countries in a bid to contain the fall-out from the credit crunch. This fund will involve $1bn of IFC funding over three years, plus at least $2bn from other investors.
An Infrastructure Crisis Facility will provide rollover financing and help recapitalise existing infrastructure projects that are viable, but facing short-term financial difficulties. The IFC will invest a minimum of $300m over the next three years and corral between $1.5bn and $10bn from other sources to support it.
“While the challenges need to be addressed at the country level, it is more critical than ever that the international community acts in a coordinated and supportive way to make each country’s task easier,” said World Bank Group President Robert Zoellick.
Seperately, the World Bank has lowered its growth forecasts for 2009 for developing economies as the fall out from the credit crunch seeps into every nook and cranny of the global economy.
