The situation of global trade finance has been worsening, with the shortfall of credit reaching some US$100 billion, trade sources said on Wednesday.

Trade finance is considered vital for global trade flow. But with the worsening of financial and economic crisis, banks are having more difficulties in issuing credit for trade.

Only four months ago the global trade finance shortfall was estimated at US$25 billion, so now it has increased fourfold, said the sources who attended a World Trade Organization expert meeting on the issue.

But some experts suggest that the reduction of global financing for trade is caused not only by the ongoing banking crisis, but also by the falling of demand as many countries are reporting double-digit declines in exports.

World Bank President Robert Zoellick reportedly said recently that only 10 percent of the global trade finance reduction was due to problems of banks, while 90 percent to the shrinking demand.

According to the trade sources, the trade finance situation in China is relatively good because of the country's huge current account surplus, but other Asian countries are having problems and there is a huge need of support for Africa.

(Xinhua News Agency March 19, 2009)