Improving the Availability of Trade Finance in Developing Countries: An Assessment of Remaining Gaps

22 Pages Posted: 24 Mar 2016

See all articles by Marc Auboin

Marc Auboin

World Trade Organization (WTO)

Date Written: March 01, 2016

Abstract

While conditions in trade finance markets returned to normality in the main routes of trade, the structural difficulties of poor countries in accessing trade finance have not disappeared – and might have been worsened during and after the global financial crisis. In fact, there is a consistent flow of information indicating that trade finance markets have remained characterized by a greater selectivity in risk-taking and flight to “quality” customers. In that environment, the lower end of the market has been struggling to obtain affordable finance, with the smaller companies in the smaller, poorer countries most affected. In an area where statistics are difficult to find, this paper looks at recent available information and provides background on the persistent and significant market gaps for trade finance in developing countries, notably in Africa and developing Asia. It discusses various initiatives in which the WTO and partner institutions are involved to alleviate in part this situation.

Keywords: trade financing, cooperation with international financial institutions, coherence, G-20, developing countries

JEL Classification: F130, F340, F360, O190, G210, G320

Suggested Citation

Auboin, Marc, Improving the Availability of Trade Finance in Developing Countries: An Assessment of Remaining Gaps (March 01, 2016). CESifo Working Paper Series No. 5784, Available at SSRN: https://ssrn.com/abstract=2754062

Marc Auboin (Contact Author)

World Trade Organization (WTO) ( email )

Rue de Lausanne 154
Geneva 21, CH-1211
Switzerland

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