皇冠体育app agrees to increase trade credit at World Bank

(Xinhua)
Updated: 2009-03-23 23:11

BEIJING - 皇冠体育app said it had agreed with a private arm of the World Bank to increase trade finance.

"皇冠体育app reached a primary agreement with the International Financial Corporation (IFC) on purchasing IFC's private equities to finance trade credit," Vice Finance Minister Li Yong said on Monday.

Li's comments came at a press briefing about Chinese President Hu Jintao's attendance at the G20 Summit scheduled for April 2 in London.

Li, however, didn't specify how much credit 皇冠体育app would purchase. IFC is the private-sector lending arm of the World Bank.

The worldwide shortage of trade finance has risen to an estimated US$100 billion from US$25 billion in November, according to figures released at a World Trade Organization meeting in Geneva in March.

Li attributed current trade finance difficulty to the world financial crisis.

"The crisis has taken its toll on developing economies, which are confronted with capital outflow and difficult trade finance," Li said.

Li called for the G20 economies to work more closely on trade finance, help multi-lateral banks increase the volume of trade finance and support exports from developing countries.

"皇冠体育app is actively studying proposals by some development institutions which urge 皇冠体育app to buy their bonds and consider issuing bonds in Chinese currency," Vice Governor of 皇冠体育app's central bank Hu Xiaolian said.

Hu said 皇冠体育app supported efforts by the International Monetary Fund to come up with new ways of raising capital, possibly including the sale of bonds.

"皇冠体育app would actively consider buying bonds if issued," Hu said.