Trade finance as an asset class has benefitted from developments in loan and debt capital markets, which have led the way in sustainable product development.
The first estimates for the factoring industry worldwide in 2020 have been announced today by the FCI’s Peter Mulroy. Factoring declines were recorded in most regions except Asia Pacific.
A three pillar approach to achieving a more sustainable and inclusive future for global trade
EUF plays an important role for our industry today more than ever and confirming FCI’s support regarding the lobbying of the new definition of default with the EBA.
TFG heard from Robert Meters on the significant role of trade credit insurance in the current economic crisis the global trade is facing.
TFG heard from Dr. Özge TOSUN, legal counsel at Export Credit Bank of TURKEY (Turk Eximbank) on the various surety bond dilemmas in Turkish insurance including the impracticality of expecting Turkish law to govern all overseas contracts.
Under the Export Development Guarantee (EDG), UKEF can provide partial guarantees covering up to 80 per cent of the risk to lenders for a maximum repayment period of up to five years.
As lockdowns became the norm around the globe, governments have had to step in to support their economies due to the substantial downturn in economic activity – breaking stimulus records in the process.
Farmers are losing money regardless of their size, defaulting on existing facilities, and as such financiers are exiting structured commodity finance due to credit and compliance risks.
Collective action by sector players concentrating on continuing education, enabling women’s access to financial markets, and directing women to more value-added businesses can be a solution to remove barriers and promote women in trade.
SMEs need to explore innovative financing options like trade credit insurance as they plan and prepare for the “new normal”.
By leveraging technology for insights, a banker can make well-informed decisions, in compliance with audit and ethics, which are in the best interest of the bank.
Banks, fintechs, and other vendors have a pivotal role to play in this situation to support communities and try to help the economy moving in the short and long term.
Correspondent Banking should in the future reinvent itself to accompany to be an ideal companion to technical assistance and be a key milestone potential ahead for the Africa market.
The value of Trade Finance Programs, which if combined with regulatory and technological innovation, is destined to hasten the closing trade finance gap and bring broader positive economic outcomes for nations.