China and IFC to boost trade finance

CHINA yesterday said it had agreed with a private arm of the World Bank to increase trade finance.

China reached a primary agreement with the International Financial Corp on purchasing IFC's private equities to finance trade credit, Vice Finance Minister Li Yong said yesterday. Li, however, didn't specify how much credit China would purchase. IFC is the private-sector lending arm of the World Bank. The global shortage of trade finance has risen to an estimated US$100 billion from US$25 billion in November, according to data released at a World Trade Organization meeting in Geneva this month.