The Global Trade Liquidity Programme will begin operations in May, channeling much-needed funds to back trade in developing countries. With targeted initial commitments of US$5 billion from public sector sources, the programme should be able to support up to US$50 billion of trade. It raises funds from international finance and development institutions, governments, and banks, and it works through global and regional banks to extend trade finance to importers and exporters in developing countries.

Robert B. Zoellick, President of the World Bank Group, said, "We welcome the tremendous degree of cooperation between public and private sector institutions that allows us to come together to launch the Global Trade Liquidity Programme for developing countries. I welcome G-20 support for this timely and targeted solution that will provide trade finance to support businesses across developing markets."

The programme has received commitments of US$1 billion from IFC, a member of the World Bank Group. The U.K. government, through its development finance institution CDC, intends to make a contribution of up to £300 million. The Canadian government announced it will commit US$200 million. The Dutch government will commit US$50 million.

Douglas Alexander, U.K. Secretary of State for International Development, said: "Private sector businesses are an essential engine of growth and play a vital role in stimulating global trade, which provides a lifeline to millions of people across the globe. People in developing countries have been disproportionately hard-hit by the economic crisis. This money will help firms keep going during the difficult climate and help to protect and create jobs."

Bert Koenders, Dutch Minister for Development Cooperation, said: "The dramatic drop in trade flows, combined with the credit crunch, severely impacts the poorest countries. The Netherlands therefore welcomes this joint effort and focuses its contribution of US$50 million to low-income countries that have less policy space to deal with this crisis. Our contribution will enable IFC to arrange financing of US$300 million to US$750 million for new trade transactions, which directly benefit the poor."

Donald Kaberuka, President of the African Development Bank, expressed his strong support for the Global Trade Liquidity Programme, saying: "The drying up of trade financing lines is already having a major impact on the African continent. This needs to be addressed urgently. The African Development Bank has a leading role to play on the continent and our Board has already approved a Trade Finance Facility to that effect. We are very pleased with this cooperation to ensure a speedy and coordinated response to the crisis."

Zoellick signed agreements with Peter Sands, Group Chief Executive of Standard Chartered Bank, and David Munro, Chairman, Standard Bank, South Africa. These two banks are the first that plan to work with the Global Trade Liquidity Programme. The banks will receive lines of credit through the programme that will enable them to significantly scale up the flow of trade finance to emerging markets banks. Standard Chartered will receive an initial line of US$500 million and Standard Bank a line of US$400 million.