APEC leaders, OECD move to ease credit crunch

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LIMA, Nov 23 (AFP): Asia-Pacific leaders and the Organisation for Economic Cooperation and Development (OECD), a forum of the rich nations, have sought to ease extremely tight trade credit for export-driven regional economies amid financial turmoil.
The move came on growing concerns the credit crunch will hit the mostly developing economies in the region which have to keep exports roaring to spur economic growth and help prevent a global recession.
US President George W Bush, Chinese leader Hu Jintao and other heads of the 21 economies of the Asia-Pacific Economic Cooperation (APEC) forum Saturday called for trade credit lines to remain open, as they met in Lima, Peru, to finds ways to contain the financial crisis that is taking a toll on economies.
The leaders backed efforts by export credit agencies, international financial institutions and private banks to "ensure that adequate finance is available to business, including small and medium-sized enterprises, and to keep trade and investment flowing in the region," a statement said.
Rapidly-growing East Asia's developing nations depend heavily on trade credit for finance which has been severely hit by a global liquidity crunch stemming from a financial market meltdown.
Experts speaking at a chief executives forum in conjunction with the APEC summit in Lima warned that a trade credit squeeze was threatening to freeze productive sectors of the economy, especially small and medium-sized businesses unable to rely on large balance sheets.