The global financial crisis has prompted the International Finance Corporation (IFC) to step up its letter of credit (L/C) offerings according to its chief executive.

Lars Thunnel says the IFC will also look at other areas in trade and commodity financing where the private-sector arm of the World Bank can assist some of the world's least developed countries.

L/C programme boost

In a broadcast by CNBC in London, Thunnel said the IFC is, "stepping up its trade finance programmes, which, especially when it comes to L/Cs which are used by the poorest countries, becomes very, very important."

The IFC chief also noted the trend for Asian banks, notably from China, Korea and Japan, to step in to provide trade finance in emerging markets from where European banks are withdrawing.

Food prospects

Thunnel says the IFC is also looking at ways to develop its commodity financing programmes, particular to help ameliorate the impact of rising food prices.

In an upbeat interview, Thunnel pointed out that high food prices could benefit less-developed countries in which the production of many commodities has become a more attractive proposition for investors.

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