TFG Weekly Trade Briefing, 24th August 2020

Your Monday morning coffee briefing from TFG. Global trade has shrunk by almost 20% in the last year. The response to the pandemic has been largely national. Supply chains have faced bottlenecks as countries imposed travel and lockdown restrictions. Soaring demand for personal protective equipment (PPE) and COVID-19 tests resulted in a scramble for supplies. Governments are borrowing on a grand scale to subsidise and protect domestic capacity.

Euler Hermes survey – Four in five UK CFOs “unprepared” for Covid-19 sales slump

80% of UK CFOs say they’re not fully prepared to manage the impact of the risk on their business caused by a decrease in sales volumes. 62% say a drop in sales volumes is their biggest worry in a post-Covid world compared to 40% pre-lockdown. 84% surveyed say they now experience payment delays at least once a month, highlighting the strain British businesses are under. Read more →

Goods barometer confirms steep drop in trade but hints at nascent recovery

World merchandise trade likely registered a historic fall in the second quarter of 2020, according to the latest reading of the WTO’s Goods Trade Barometer, a real-time gauge of trends in global trade. Additional indicators point to partial upticks in world trade and output in the third quarter, but the strength of any such recovery remains highly uncertain. Read more →

US-China trade war escalates

The relations between the United States and China have significantly deteriorated under the current Trump administration following accusations Beijing engaged in unfair trade practices. A trade agreement was signed in January. In June, it was reported that China had only purchased $40 billion of the $173 billion of US purchases committed for 2020. Read more →

ITFC signs USD 8m trade finance agreement with Uzbekistan based ‘Trustbank’

The International Islamic Trade Finance Corporation (ITFC), signed a US$8 million Murabaha-structured line of trade finance with the private joint stock bank, Trustbank in Uzbekistan, to minimize the impact of COVID-19 by supporting the import and pre-export financing needs of SMEs in the country. Read more →

TFG announces partnership with Reuters Events flagship Commodity Trading Summit

Trade Finance Global  announced a media partnership with Reuters Events flagship Commodity Trading Summit, a virtual series of events featuring commodity producers, traders, buyers and investors. The conference will showcase a macroeconomic overview and future outlook for global commodities trading, with big names and leaders from across the sector. Read more →

What is UKEF’s Export Development Guarantee?

Under the Export Development Guarantee (EDG), UKEF can provide partial guarantees covering up to 80% of the risk to lenders for a maximum repayment period of up to five years. While the minimum loan value under the EDG is £25 million, the average amount is expected to be somewhere between £100 million and £500 million. Read more →

TDB and AFD sign a USD 150m credit line to finance green infrastructure in Africa

TDB and AFD signed a USD150 million credit line agreement aimed at financing climate infrastructure projects in Africa. The non-sovereign loan’s objective is to strengthen TDB in its role as a leading regional bank for green finance in the region it serves in Eastern and Southern Africa. Read more →