UNUnited Nations Economic Commission for Europe

Press Releases 1996

[Index]
FINANCE FOR TRADE IN CENTRAL AND EASTERN EUROPE

7 November 1996

Consultative Meeting on Strengthening Export Finance Support
in Central and Eastern Europe
Geneva, 28-29 October 1996

Senior bankers and financial experts from some of Europe's top export financing agencies met at the Palais des Nations in Geneva to explore new ways of supporting trade finance for central and eastern Europe. The meeting was organized by the United Nations Economic Commission for Europe (UN/ECE) and the International Trade Centre UNCTAD/WTO (ITC) with the participation of the Berne Union and the European Bank for Reconstruction and Development (EBRD).

More than 90 managers from private and public institutions concerned with trade financing agreed that while considerable potential existed for exports in transition countries, inadequate trade finance facilities were a major constraint faced by exporters.

They identified a number of priority actions to facilitate export development. One of them is the improvement of the export finance system, including adequate pre- and post-shipment short-term financing, which in some countries is totally inadequate. Improving access to medium-term funds through the euro-market is also an important issue for potential exporters, as is access to reinsurance. Institutional capacity building, including training for the effective operation of export credit agencies and other new institutions, is also needed to strengthen trade finance systems in these countries.

The meeting reviewed trade finance needs in the region, the main existing programmes and recent developments on trade finance. In this connection, EBRD's trade financing programme and its new risk-sharing scheme with local Export Credit Agencies and the EU's multi-country trade development programme for central and eastern Europe were also presented.

The meeting came up with recommendations to enhance regional cooperation for export finance. These recommendations relate to pre-shipment/working capital guarantee schemes; setting up databases on credit information including risk assessment to promote a better management of risk; regional training schemes and research and information sharing on the privatization of short-term export credit insurance.