CTM File: Closing the trade finance gap is essential for global trade

The USD 1.5 trade finance gap, as calculated by the Asian Development Bank in 2019, is a much-cited figure that casts a long shadow over the global trading environment. It has become a go-to statistic when lamenting inaccessibility of trade finance and the disproportionate impact of a lack of funds on emerging markets businesses, in particular SMEs. However, what is this gap really, how can we better understand it and – most importantly – what solutions are available in order to close it?

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