Poorer Nations Face Financing Gap

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Al Jazeera reported this today:

Developing countries face a financing gap of $270bn to $700bn this year as trade income dwindles and rich nations vie for capital to deal with a global slump, the World Bank says.

Resources of international financial institutions would not be sufficient to meet their needs as more and more emerging and developing countries are hit, the World Bank said on Monday.

“Should a more pessimistic outcome occur, unmet financing needs will be enormous,” the World Bank said in a paper prepared for meetings of the G20 group of countries in London in April.

Last week, the International Monetary Fund (IMF) said developing countries would need $25bn, and possibly as much as $140bn, in 2009 to meet their financing needs.

The World Bank said the crisis could have long-lasting repercussions for developing countries, which are contending with a drop in exports as world trade shrinks for the first time since 1982.

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