TY - BOOK ID - 136900456 TI - Inter-Firm Trade Finance in Times of Crisis PY - 2009 PB - Washington, D.C., The World Bank, DB - UniCat KW - Access to Finance KW - Access to financing KW - Asymmetric information KW - Bankruptcy and Resolution of Financial Distress KW - Borrower KW - Contract enforcement KW - Credit chains KW - Debt Markets KW - Debts KW - Developing countries KW - Economic Theory and Research KW - Emerging market KW - Emerging Markets KW - Exporters KW - Extensions of credit KW - Finance and Financial Sector Development KW - Financial crisis KW - Financial markets KW - Global economy KW - International Bank KW - International Trade KW - Lender KW - Monetary Fund KW - Private Sector Development KW - Trade credit KW - Trade Finance KW - Trade financing UR - https://www.unicat.be/uniCat?func=search&query=sysid:136900456 AB - The paper discusses the main features that distinguish inter-firm international trade finance from alternative sources of financing. On the one hand, inter-firm trade finance could help overcome informational problems associated with other lending relationships; on the other, it may contribute to propagate shocks due to the interconnection among firms along credit chains. The paper evaluates the potential effects of a financial crisis on the use of trade credit for firms operating in developing countries. It argues that while the advantages of trade credit might remain largely unexploited due to poor legal institutions, the disadvantages might be exacerbated because of these firms' greater exposure to a default chain. Based on these arguments, a menu of choices is identified for what policymakers can do to boost firms' access to inter-firm trade finance in times of crisis. ER -