Malouche, Mariem2012-03-192012-03-192009-11-01https://hdl.handle.net/10986/4329In the aftermath of the Lehman Brothers collapse in September 2008, drop in the supply of trade finance, a critical engine for trade transactions, has become an acute concern for the development community. Banks were increasing pricing on trade finance transactions to cover increased funding costs and higher credit risks, and trade was dropping drastically in most countries, with global trade projected to decline in 2009 for the first time in decades. Yet, little was known about the real impact of the crisis on developing country s capacity to export. The World Bank has commissioned a firm and bank survey on trade and trade finance developments in developing countries during the first quarter of 2009 to collect field information. In total, 425 firms and 78 banks were surveyed in 14 developing countries across five regions. This paper summarizes the findings of the survey as well as discusses the type of policies governments and international organizations put in place to mitigate the impact of the crisis. In sum, the survey findings confirmed that the global financial crisis has constrained trade finance for exporters and importers in developing countries. But the impact varied by the firm size, sectoral activity, and countries integration into the global economy. In particular, SMEs were particularly affected, and export diversification was made more difficult, especially in low income countries. Nevertheless, drop in demand has emerged as the top concern of firms at the time when the survey was conducted in March-April 2009.CC BY 3.0 IGOACCESS TO CREDITAGRICULTURAL PRODUCTSALTERNATIVE SOURCES OF FINANCINGARREARSBALANCE OF PAYMENTSBANK CREDITBANK LENDINGBANK OF INDONESIABANK PORTFOLIOSBANKING INDUSTRYBANKING SECTORBANKING SYSTEMBANKING SYSTEMSBANKSBASIS POINTSBINDING CONSTRAINTBORROWINGBROKERSBUSINESS STRATEGIESCAPACITY CONSTRAINTSCAPITAL BASECAPITAL MARKETSCAPITAL REQUIREMENTSCAPITALIZATIONCASH FLOWCASH RATIOCASH RESERVECASH RESERVE RATIOCASH RESERVESCENTRAL BANKCENTRAL BANK OF TUNISIACHEAP MONEYCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL CREDITCOMMODITY PRICESCONSUMER GOODSCREDIT ACCESSCREDIT AGENCIESCREDIT AGENCYCREDIT GUARANTEECREDIT GUARANTEESCREDIT HISTORIESCREDIT INSTITUTIONSCREDIT LINECREDIT LINESCREDIT MARKETCREDIT RISKCREDIT RISK EVALUATIONCREDIT RISKSCREDIT STANDINGCREDITORSCREDITSCURRENT ACCOUNTDEBTDEBT PAYMENTSDEBTORSDEPOSITDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDEVELOPMENT BANKSDIVERSIFICATIONDOMESTIC BANKSDOMESTIC FINANCIAL MARKETSDOMESTIC MARKETSDOWN PAYMENTDOWN PAYMENTSDUE DILIGENCEDURABLEDURABLE GOODSECONOMIC CONDITIONSECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICIESECONOMIC POLICYELIGIBILITY CRITERIAEMERGING ECONOMIESEMERGING MARKETSEQUIPMENTEQUIPMENTSEXPORT COMPETITIVENESSEXPORT EARNINGSEXPORT FINANCINGEXPORT GROWTHEXPORT IMPORT BANKSEXPORTEREXPORTERSFACTORINGFINANCE CONSTRAINTSFINANCE COSTSFINANCIAL COSTSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL RESOURCESFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCING ACCESSFISCAL DEFICITFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN MARKETSGLOBAL ECONOMYGLOBAL TRADEGOVERNMENT INTERVENTIONGUARANTEE REQUIREMENTSHANDICRAFTSIMPORT TARIFFSINCOME LEVELSINFLATIONINFLATION RATESINFORMATION SYSTEMINSTRUMENTINSURANCEINSURANCE AGENCIESINSURANCE AGENCYINSURANCE COMPANIESINSURANCE COMPANYINSURANCE CORPORATIONINSURANCE PRODUCTINSURANCE SERVICESINTEREST RATEINTEREST RATE ADJUSTMENTSINTEREST RATE CEILINGINTEREST RATE CEILINGSINTEREST RATESINTEREST SUBSIDYINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL CREDITINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETINTERNATIONAL TRADEINVENTORIESINVENTORYINVESTMENT BANKINGLACK OF FINANCELEGISLATIONLENDING DECISIONSLENDING PORTFOLIOSLENDING REQUIREMENTSLETTER OF CREDITLETTERS OF CREDITLETTERS OF CREDITSLINES OF CREDITLINES OF CREDITSLIQUIDITYLIQUIDITY CONSTRAINTSLOANLOAN PORTFOLIOLOAN PORTFOLIOSLOCAL BANKSLOCAL CURRENCYMARKET ACCESSMARKET FAILUREMATURITIESMATURITYMORAL HAZARDMORTGAGEMULTINATIONALMULTINATIONAL BANKSNEW COMPANIESNEW MARKETSPENSIONPENSION FUNDSPOLITICAL RISKPRIVATE BANKSPRIVATE CREDITPRIVATE LENDERSPROFITABILITYPROPERTY TAXPUBLIC BANKSRECEIPTSRECESSIONREGIONAL DEVELOPMENT BANKSREMITTANCESRESERVE BANK OF INDIARESERVE REQUIREMENTRETAINED EARNINGSRISK AVERSIONRISK MITIGATIONSELF-FINANCINGSHORT-TERM FINANCINGSHORT-TERM TRADE FINANCESOCIAL DEVELOPMENTSOCIAL SECURITYSTATE BANKSTRUCTURAL PROBLEMSSUBORDINATED DEBTSUPPLY CHAINSUPPLY CHAINSTAX CREDITSTECHNICAL ASSISTANCETECHNICAL SUPPORTTELECOMMUNICATIONSTERM CREDITSTIER 2 CAPITALTRADE CREDITTRADE CREDITSTRADE FINANCINGTRADE FLOWSTRADE VOLUMETRADINGTREASURYUNEMPLOYMENTUNIONWORKING CAPITALWorld Bank10.1596/1813-9450-5138