The London summit on the financial crisis ended on Thursday with a promise of US$250 billion (S$376.7 billion) from major governments to pump up global trade credit, which has shriveled as lenders hoard cash, worsening a double-digit drop in Asian exports.

Many of the region's export-dependent economies have tipped into recession not only because demand from the West has crumbled amid the global slump but also because financing for trade has become scarce.

'Short-term financing is important now for the world economy to grow and trade to take place,' said Li Wei, an economist at Cheung Kong Graduate School of Business in Beijing.

In South-east Asia's biggest economy, Indonesia, where industries from textiles to auto parts have been paralysed by a lack of credit, the money should play a role in restoring normal production, said Sofyan Wanandi, head of the Gemala Group, a conglomerate.

'This should really help,' he said. 'The most important contribution will be tackling problems within the banking system, so it works normally again.' In India, where trade is 35 per cent of the economy, the money should help textile and diamond exporters that have been hit by falling demand, said Amit Mitra, secretary general of business group FICCI.

'They are under a severe cash crunch,' he said.

Hong Kong and Singapore, both major traders, should benefit as easier credit helps to boost exports, analysts said. In Hong Kong, exporters are avoiding taking large orders for fear cash-strapped buyers cannot pay.

There was also optimism that Asian economies would be helped by the summit's promise to triple the resources of the International Monetary Fund to US$750 billion and to create a US$250 billion IMF fund to help members' foreign reserves. -- AP