Ottawa, June 9, 2009
2009-058
The Honourable Jim Flaherty, Minister of Finance, and Robert B. Zoellick, World Bank Group President, today signed an agreement authorizing a US$200-million Canadian contribution to the International Finance Corporation's Global Trade Liquidity Program. Canada is the first country to officially participate in this new program, a World Bank-led initiative that brings together governments, international finance and development institutions, and private sector banks, and will support much-needed trade finance in developing countries.
"By keeping our fiscal house in order long before the global turmoil began, Canada has been recognized as being better placed than many countries to weather the global financial turbulence and worldwide recession," said Minister Flaherty. "Canada has already taken steps to keep our world-leading financial system strong through our Extraordinary Financing Framework. Likewise, this Canadian support to the World Bank's new trade finance program will help shore up global trade flows-a key element of global economic recovery."
"Supporting the Global Trade Liquidity Program will help get trade moving in developing economies, which is critical for a global turnaround that would benefit all countries," said President Zoellick. "Canada's $200 million will have a multiplier effect by leveraging private sector resources for trade financing, and will help vulnerable countries, hard hit by the crisis, to get their goods to market."
Canada originally announced the US$200-million contribution at the London G20 leaders' summit in April. The funding is part of Canada's commitment to provide additional resources to the World Bank and the International Monetary Fund to help build a more stable global financial system and strengthen the global economic recovery.
The signing coincided with President Zoellick's visit to Canada. President Zoellick is also meeting with Prime Minister Stephen Harper, Minister of International Cooperation Beverley J. Oda, Minister of National Defence Peter Gordon MacKay, and Minister of Foreign Affairs Lawrence Cannon.
For further information, media may contact:
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
