Developing Countries Face US$700 Billion Financing Gap

The World Bank has warned that developing countries could face a financing gap of US$270-billion to US$700-billion this year as trade income dwindles and rich nations vie for capital to deal with a global slump.

The banks says that even at the lower end of that estimate, resources of international institutions will not be sufficient to meet the financing needs as more and more emerging and developing countries are hit.

In a paper prepared for meetings of the G20 group of countries in London in April, the bank argues that “Should a more pessimistic outcome occur, unmet financing needs will be enormous."

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