Fostering Global Trade The Exim WayVenkat Subramanian elected President of G-NEXID

In a significant development that could boost international commerce, especially among developing countries, a “Global Network of Exim Banks and Development Finance Institutions (G-NEXID)” has been launched in Geneva recently. T.C. Venkat Subramanian, Chairman and Managing Director, Export-Import Bank of India (Exim Bank), has been unanimously elected President of the newly established network. It is as much an international acclaim for Exim Bank for the services it has been rendering in fostering world trade as it is for Venkat Subramanian for providing inspirational leadership for the organization.

The Global Network of Exim Banks and Development Finance Institutions (G-NEXID), has been launched recently at the United Nations Conference on Trade and development (UNCTAD) Headquarters, Geneva, in the presence of Dr. Supachai Panitchpakdi, Secretary General of UNCTAD,
The forum has been envisaged to promote trade and development finance through co-operation and exchange of information on best practices in trade and project finance among developing countries.
G-NEXID was initiated in June 2004 in Rio de Janeiro during meetings held in preparation for the UNCTAD XI conference. This was followed by the signing in March 2005 of a Memorandum of Understanding ( MoU) by five Exim Banks and DFIs, including Export-Import Bank of India (Exim Bank). After the acceptance of the legal statutes, G-NEXID was formally launched at a meeting held at UNCTAD in Geneva on March 13, 2006.
Export-Import Bank of India and UNCTAD, with their shared objectives of promoting South-South trade and investment flows, have taken the initiatives in setting up the forum. Exim Bank Chairman and Managing Director T.C. Venkat Subramanian has been unanimously elected President of the newly established network.
G-NIXED is intended to boost bilateral and multilateral agreements among export-import (Exim) banks and development finance institutions (DFIs) based in developing countries, leading to reduction in costs of trade between developing countries, enhancing investment flows across borders and making more financing available to new and innovative businesses, thereby creating an enabling environment for developing countries.
Speaking at the occasion, Dr. Supachai Panitchpakdi remarked that 'finding ways to strengthen South-South financing can be a win-win-game, and that the newly established network would allow developing countries to learn from each other and share effective practices for entering new markets, financing non-traditional goods and services, and established risk-sharing methods of investments'.
With developing countries increasingly aiming to integrate with the global economy, a common alliance amongst institutions engaged in trade and investment financing can play a significant role in enhancing international competitiveness of local industry and in promoting south-south trade and investment. In this context, a common institutional mechanism covering Exim Banks and Development Finance Institutions to leverage their natural synergies to promote South-South trade and investment can contribute to an overall development of the southern countries. The Global Network of Exim Banks and DFIs (G-NEXID) is an initiative in this direction.
G-NEXID will complement rather than duplicate existing multilateral, regional, sub-regional and national institutions. Members at the CEO level will meet annually and engage in an active dialogue. The Annual Meetings will deliberate upon measures to foster long-term relationship amongst members, share experience and strengthen financial cooperation to promote trade and investment. Such cooperation is expected to reduce the costs of trade between developing nations, spurring investment across borders and making financing more readily available to new and innovative businesses and enabling the growth of "niche markets."