The cavalry of commerce

With G20 cash in their saddlebags, export-import banks ride to the rescueTRADE is shrinking at the fastest rate since the second world war. The global economys woes are largely to blame, but scarce trade finance, especially in emerging markets, hardly helps. In November the World Trade Organisation put the shortfall at $25 billion, but by March the gap had widened to between $100 billion and $300 billion. At the G20 summit on April 2nd, the leaders vowed to reverse this trend by ensuring the availability of at least $250 billion over the next two years to support trade finance. What that lofty figure represents is unclear. The little official information there is suggests that as much as $200 billion would flow through export-credit agencies (ECAs), such as Americas Export-Import Bank, which specialise in trade finance. The G20 suggested that up to $50 billion of trade liquidity support would come via the World Bank.