IFC, ING partner in commodity financing facility
July 5 |
July 5 (Reuters) - The World Bank's investment arm and ING Bank said on Thursday they would partner in a $500 million facility to ensure that food and energy traders continue to have access to finance at a time when bank lending is tightening.
The International Finance Corp and ING will each contribute $250 million to the facility that "aims to improve the flow of energy and agricultural commodities in the developing world," IFC director for global trade and supply chain solutions, Georgina Baker, said in a statement.
In particular, the facility will include support for agricultural commodity exports from Russia and other countries in Eastern Europe, which are most exposed to the effects of the euro zone debt crisis.
As European banks reduce lending to cope with increased recapitalization requirements and a fallout from the turmoil in the euro zone, commodity traders are increasingly finding it difficult to tap financing.
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