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ABOUT G-NEXID |
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Global Network of Export-Import Banks and Development Finance Institutions (G-NEXID) - a network that hopes to support rapidly increasing trade between developing countries with expanded financial services that can spur and stabilize economic growth.
In the last two decades, South-South trade has grown dramatically - for most of the time, faster than world trade. At the same time, South-South investment flows have also increased rapidly and now account for more than one-third of the total investment flows to developing countries. G-NEXID is intended to boost bilateral and multilateral agreements of all kinds among export-import (Exim) banks and development-finance institutions (DFIs) based in developing countries. Such cooperation is expected to reduce the costs of trade between the world´s poorer nations, spurring investment across borders and making financing more readily available to new and innovative businesses and enabling the growth of "niche markets." The newly established network also will allow developing countries to learn from each other and share effective practices for entering new markets, financing non-traditional goods and services, and establishing risk-sharing methods for investments. G-NEXID was initiated in June 2004 in Rio de Janeiro during meetings held in preparation for the UNCTAD XI conference. A one-day brainstorming session followed in March 2005 that ended with the signing of a Memorandum of Understanding by the five Eximbanks and DFIs present (Export-Import Bank of India, African Export-Import Bank, Andean Development Corporation, Export-Import Bank of Malaysia, and Eximbanka SR). G-NEXID will support the creation of effective policies for the challenges posed by Basel 2, which is expected to make bank lending for "risky" borrowers more expensive and so create additional difficulties for South-South financing. And G-NEXID will strive to take advantage of the new strengths of the international capital market. |