The Global Network of Export-Import Banks and Development Finance Institutions (G-NEXID) met recently in Geneva to discuss how member states could collaborate to close the trade finance gap.

The meeting was asked to consider a reciprocal agreement to promote letters of credit (L/Cs), one of several trade finance instruments that have become harder to obtain in many less-developed and emerging markets across the world in recent years.

L/C confirmation facility

The meeting featured a workshop with a presentation by chief general manager of Export-Import Bank of India, Sangeeta Sharma, on the trade finance gap.

The workshop also heard a proposal for an L/C confirmation facility amongst G-NEXID members.

The G-NEXID institutions agreed to endorse the use of a reciprocal confirmation facility wherever feasible when a trade opportunity arises between two countries.

G-NEXID role

G-NEXID was formed in 2006 under the auspices of UNCTAD to facilitate cooperation amongst policy banks and similar institutions in support of South-South trade, investment and project finance.

With membership drawn from across Africa, Asia, Eastern Europe and Latin America, G-NEXID is headquartered in Geneva, Switzerland.

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