The latest survey report released by the Asian Development Bank (ADB) on October 12 shows that due to the impact of the new crown epidemic, the global trade financing gap in 2020 will reach US$1.7 trillion, a record high.
The survey involved 79 banks and 469 companies worldwide. The report shows that due to the deterioration of the balance sheet and the increase in macroeconomic uncertainty caused by the epidemic, the global trade finance gap in 2020 will be about 15% larger than that in 2018. Of all trade financing applications rejected by financial institutions, about 40% came from small and medium-sized enterprises.
Steven Baker, head of ADB’s trade and supply chain finance affairs, said that trade is vital to the recovery of the world economy from the epidemic, but the shortage of trade finance makes job creation and economic growth more difficult.
Baker said that the comprehensive promotion of trade digitization will help narrow the trade financing gap, which requires broader coordination among all parties and a consensus on standard setting, implementation and legislation on a global scale.
The Asian Development Bank is a multilateral development bank focusing on the development of the Asia-Pacific region. It was established in 1966 and is headquartered in Manila, the capital of the Philippines.
(Source: Xinhua News Agency, original title: ADB: The global trade financing gap in 2020 will reach US$1.7 trillion)
