Trade finance: step it up

The world needs more trade credit, and fast. The International Monetary Fund expects trade volumes to contract by 2.8% in 2009. In 2007, world trade was growing at staggering 7.1%. A correction of that magnitude is going to hurt. Government support for trade finance could help ease the pain. Trade finance underpins 90% of global trade. It enables buyers to transact with unknown sellers secure in the knowledge that familiar lenders are in the middle of the deal. But the cost of financing trade ...