Donors formally com mitted funds today to the $50 billion Global Trade Liquidity Program (GTLP), triggering the first disbursements to importers and exporters in developing countries to helpÂ 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 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 Organizationâ€™s Second Global Review of Aid for Trade, Lamy said, â€œAt 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.â€
Zoellick said, â€œAs 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.â€
Program partners include the African Development Bank, 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.