WTO Warned G20 That The Current Banking Crisis Is Affecting Global Trade Finance.

On the morning of October 20th, Beijing time, Reuters reported on Thursday that it is in the current situation.

The above remarks were made after a meeting hosted by World Trade Organization (WTO) director general Rami (Pascal Lamy).

In an article quoted by an unnamed insider, Reuters said that Lamy said in his speech that there is no doubt that the current situation is deteriorating, especially in the Middle East, southern Europe, Eastern Europe and Africa.

The article points out that Lamy has convened a team of trade finance experts including representatives from regional development banks and listed banks, such as J.P. Morgan, HSBC and Standard Chartered Bank, to decide what information should be pmitted to leaders at the 20 nation gathering summit held in Cannes, France, in November this year.

Reuters said the group of 20 had asked Lamy to assess the effectiveness of trade finance.

Although trade finance does not belong to WTO management, it is crucial to the world trade system.

After the conference, a trade finance expert said that under the background of tighter liquidity and tightened banking regulation, many large commercial banks began to weigh the need to close down Africa's trade finance business.

Another expert said that the lack of financial guarantees would lead to the return to the era of "purse bank", where large amounts of cash were directly handed over to the seller by the buyer.

"If you don't try to reduce the scale of the balance sheet, what do you want to cut first?" the Reuters quoted another insider.