WORLD BANK CHIEF URGES EU TO LEAD SUPPORT FOR EASTERN EUROPE

Speaking to the Financial Times amid turmoil in central and east European markets yesterday, Mr Zoellick said the bank was trying to work with the International Monetary Fund and other multilateral institutions to help the region but needed more backing from Brussels. “It's got to have support from the European governments,” he said. “It's 20 years after Europe was united in 1989 – what a tragedy if you allow Europe to split again.”

Mr Zoellick's appeal came as he outlined the World Bank's ambition to restore some health to trade finance in time for the G20 summit of leading and emerging economies in April.

He hoped the World Bank, governments and banks could come together to finance a $25bn facility for trade finance, where the bank would accept the most risky part of the loans.

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