Credit: World fails to finance growth

MANILA: Worldwide, and particularly in Asia, companies are struggling to find enough financing to support the trade that grows economies and creates jobs, according to the Asian Development Bank report, 2016 Trade Finance Gaps, Growth and Jobs Survey. The trade finance gap - the difference between the trade financing needed versus what is being provided - is estimated at $1.6 trillion worldwide. An estimated 40% of trade finance proposals worldwide come from Asia, which has the world’s highest rejection rate. Nearly half of the world’s trade finance gap, or about $692 billion, is in developing countries in Asia, including India and the People’s Republic of China. More than half (56%) of trade finance proposals by small and medium-sized enterprises are rejected.

Published in The Express Tribune, September 16^th, 2016.

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