The International Chamber of Commerce has urged G20 leaders to make coordinated interventions to increase the availability of trade-related finance – given that this is a proven low-risk means of providing fresh stimulus to increasingly stretched SMEs.
ICC has further outlined additional measures that could be implemented by G20 governments to prime the supply of trade financing globally, including a scaling of publicly backed credit guarantee schemes, regulatory interventions, and export credit insurance to incentivize the provision of trade credit by commercial banks.
As the ICC’s Secretary General advises, interventions to prime the supply of trade finance should be considered by G20 governments as means of mitigating downside risks to the economy, and as low- or no-cost means to fuel a rapid and resilient recovery from the crisis. As the ICC sees it, it is vital that the leaders of the world’s leading economies seize the narrow window of opportunity to save SMEs.
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