WASHINGTON -- the Institute of International Finance has called for reforms in government export-credit guarantee programs, including changes aimed at supporting longer-term projects in developing countries.
John Heseltine, acting managing director of the international banking institute, said the Group of Seven industrialized nations should focus efforts on reforming trade and project finance because "it could be, and should be, a strong stimulus in the developing world."
Speaking to reporters, Mr. Heseltine also noted the changing complexion of capital demand in developing countries, particularly in Latin America and Asia, toward project finance -- inn which repayments are made from cash flows of completed projects -- and away from medium-term sovereign borrowing.
Private Enterprise Is Emphasized
The institute official said export-credit guarantee programs should be tailored to meet project-loan demands, including a greater emphasis on private enterprise in keeping with Group of Seven preferences for aid to developing nations, including the former Soviet Union.
Mr. Heseltine said the banking institute has presented its recommendations to the Group of Seven, which accounts for at least 85% of the world's trade.
The seven countries -- the United States, United Kingdom, France, Germany, Japan, Italy, and Canada -- are expected to review export-credit issues at technical talks before the end of this year, according to institute officials.