Articles

Industrialisation is a critical component of economic development, with many benefits that include improved standard of living, economic stability, growth in agricultural production, the balance of payment surpluses and high employment rates. 

For many SMEs, the financing gap is always a major concern. It is reported that financing shortages count for more than half of SMEs’ problems. This issue is important for national policymakers, and financiers, as SMEs are major drivers of economic growth, employment, and social development in all economies, but especially in developing countries.

Your Monday morning coffee briefing from TFG, 17th April 2023

The Basel regulations have been continuously refined and updated to address new risks and challenges in the global banking sector, with the overall aim of promoting financial stability and preventing future crises.

A typical fund structure uses proceeds from shareholder subscriptions to invest in a diverse pool of assets. A fund generally cannot default if it has no debt obligations but rather will experience changes in its total return or net asset value available to fund shareholders (the investors).

Fraud has been a prevalent issue in commodity trading and financing over the past few years, most recently in relation to cargoes of metals.

ESG is certainly not a new development, but its growth and importance in financial services have never been higher. Whilst there has been a big focus on the “E” in ESG, we’re also seeing a lot of progress in tackling other aspects, such as social action to address societal challenges. One of the biggest social challenges in global trade is the huge, and growing, finance gap.

The Court of Appeal in England has decided in MUR Shipping BV v. RTI Ltd [2022] EWCA Civ 1406 (27 October 2022) that sometimes a party must accept payment in Euros, even though the contract expressly stipulated payment to be made in US Dollars. Although the case is not about independent undertakings, DCW readers might ask if the decision could have implications for letters of credit and demand guarantees.

Recent news reports have suggested that the European Union Parliament will likely retain treatment of certain trade finance instruments at a credit conversion factor (CCF) of 20% instead of increasing it to 50%, but trade finance specialists tracking the ongoing proceedings have said that the EU banking community needs to remain extremely cautious.

The MLETR (Model Law on Electronic Transferable Records) is a revolutionary solution that aims to transform the trade finance industry by providing an open framework for digitising trade documentation. 

To put it lightly, the past few years have been a rollercoaster ride for trade finance. Recent challenges have pushed the industry to the boundaries, which has created significant angst for many. However, this struggle also has a silver lining.

The geographically dispersed nature of international trade creates inherent difficulties when it comes to trusting a counterparty that may be located on the opposite end of the world.

At the ITFA and BCR: Trade & Investment Forum, Trade Finance Global’s (TFG) Deepesh Patel spoke with Abis Soetan, director at Fitch Ratings, to learn how the industry is evolving to incorporate trade as an asset class.

At the International Chamber of Commerce (ICC) UAE’s Trade Facilitation Summit, Trade Finance Global (TFG) spoke with Steven Beck, head of the trade and supply chain finance program at the Asian Development Bank (ADB).

Supply Chain Finance can, and should, be a force for good in ensuring much-needed liquidity reaches all suppliers, regardless of their size and meets the objectives of buyers.