The World Trade Organization (WTO) and six multilateral development banks pledged on Wednesday (01.07.2020) to take steps to try to Prevent financial problems from affecting world trade, including essential goods such as food, medicines or medical equipment.
In a joint statement, Seven institutions have pledged to support the bodies promoting exchanges in the coming months, and urged other agencies and companies to join these efforts to prevent cross-border trade from coming to a standstill.
Under the current circumstances, the statement said, Many banks have decided to avoid any risk and this has made them more reluctant to finance international transactions., something that was already difficult before the crisis in the case of developing countries and small businesses.
In this context, more support is needed "as the sharp downturn in the real economy begins to impact the financial system, through loan defaults and corporate bankruptcies."
Insufficient financial support for trade "It will make it difficult for exchanges to help drive the economic recovery that the world will need once the health crisis is over."", stressed WTO Director-General Roberto Azevêdo.
The joint statement was signed by the WTO, the International Finance Corporation, the European Bank for Reconstruction and Development, the Asian Development Bank, its African counterpart, the Islamic Trade Finance Corporation and the Inter-American Development Corporation.
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