Sweden to help trading in underdeveloped economies in CEE with 125m USD

Sweden will provide 125m USD for larger loans for financing the trade in the underdeveloped economies in Central and East Europe (CEE) where the volume of operations is reduced because of the global financial crisis.

The Agreement between International Finance Corporation (IFC) and Swedish International Development Agency (SIDA) anticipates provision of guarantees without coverage for global and regional banks that finance trading in the underdeveloped markets in CEE.

- The guarantees will be granted to the banks in the markets of Serbia, Bosnia and Herzegovina, Albania, Belarus, Georgia, Kosovo, Macedonia, Moldova, Turke and Ukraine - IFC announced.

The Agreement was reached within the scope of the second phase of the Global Trade Liquidity Program run by IFC, the World Bank's affiliate.

Over the last six months, more than 900m USD have been paid as a support to 2.2 billion USD worth of trade transactions in the underdeveloped markets.

The guarantees without coverage will stimulate the banks to provide the loans for financing the trade since they will contribute to reduction of credit risk related to re-entrance or expansion to the underdeveloped markets.

IFC plans to provide additional funds in the same amount as SIDA in order to manage that package of measures.