Your Monday morning coffee briefing from TFG. Global trade volumes slowed, rising by 2.1% in September to a level roughly 4% below that of the same month in 2019.
TFG heard from development finance expert Diana Smallridge on the role of various institutions when it comes to financing trade, infrastructure, and exports.
In response to ADB’s recent USD $200mn to boost trade finance in response to the impact of COVID-19, TFG caught up with Manilla based Steven Beck on TFT. The requirements for multinationals and development banks has never been more important in keeping supply chains running.
Enterprises in EDEs face enormous financing challenges to respond to new export market opportunities and grow their businesses sustainably.
TFG heard from Beata Javorcik at University of Oxford, discussing corporates addressing climate change.
TFG heard from the EBRD around their ambitious Green Economy Transition (GET) approach, including the Green TFP which has supported more than 600 foreign trade transactions with a total value of more than €400 million since 2016.
We discussed with AIG some of the challenges and opportunities in the trade credit insurance sector. Enabling the much-needed reduction of the trade finance gap, and bringing in a wider array of investors while mitigating the risks of such expansion in the backdrop of geopolitical uncertainty will be a huge challenge in 2020. However, dealing with a broader collection of participants in the trade finance ecosystem in terms of jurisdictions, size of the borrower, types of assets and fintech entrants set us up for interesting times.
As the most authoritative voice in the trade finance industry, ICC Banking Commission, maintains a permanent dialogue with regulators and supervising bodies, helping to develop regulations affecting the industry.
2019 has been a fairly promising year of growth for some emerging and developing markets, but with continued regulatory scrutiny, correspondent banking relationships continuing to be a cut, and a sluggish growth forecast for 2020, what does this mean for trade in EDE’s?
The Asian Development Bank (ADB) has released the results of the 2019 rendition of their annual Trade Finance Gaps, Growth, and Jobs Survey. ADB’s vast network of respondents includes 112 banks from 47 countries, 53 export credit agencies from 17 countries, 39 forfaiters from 20 countries, and 336 other firms from 68 different countries around the globe.