Bonds, Guarantees and Letters of Credit

The increasing frequency, intensity, and unpredictability of climate crises have significant implications for the sustainability of sovereign debt due to the impacts on debtors’ repayment abilities.

The financial landscape has undergone a seismic shift in recent years. From zero or negative interest rates to the COVID-19 pandemic and geopolitical tensions, the world has seen it all. Amidst this backdrop, the role of private credit has evolved significantly. 

Your Monday morning coffee briefing from TFG, 21st August 2023.

Surety carriers have a unique opportunity to support the green transition, grow emerging industries, and promote sustainable financing practices. However, challenges must be addressed.

The ICC has unveiled eUCP Version 2.1, an alignment of the eUCP with the UNCITRAL MLETR

During the European Bank for Reconstruction and Development’s (EBRD) 32nd Annual Meeting and Business Forum in Samarkand, Uzbekistan, TFG spoke with several industry leaders to learn more about the particulars of a first-of-its-kind transaction. 

VIDEO: Learn more about the letter of credit and the rules governing its use in this four-part interview series with Pradeep Taneja of ICC Bahrain. Includes: tips and explanations of the UCP 600 and the evolution of the rules.

Your Monday morning coffee briefing from TFG, 24th April 2023

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.

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.

Persistent structural gaps within and between the world’s economies will decisively influence trade in the years ahead. This was one of the key findings in the latest Future of Trade report.

As more companies look for ways to expand into new markets, surety bonds provide a valuable safeguard and financial advantage.

At the IIBLP’s Dubai Trade Law & Compliance Conference held in Dubai on 15 March 2022, one of the panellists referred to the Solo Industries fraud in a panel discussion addressing the recent Singapore case, Credit Agricole Corporate & Investment Bank (CACIB), Singapore branch v. PPT Energy Trading Co.

Your Monday coffee briefing from TFG – Trade digitisation: the legal framework that will facilitate efficient trade