GTR Magazine - May/June 2009
GTR Magazine: May/June 2009
US Ex-Im readies to fight downturn
In mid-April, the Export-Import Bank of the United States (US Ex-Im) held its annual conference in Washington DC, celebrating its 75th anniversary, and sending out the clear message that export finance is the key part of any economic recovery strategy. Philip de Leon reports.
A new start for trade
Following months of inactivity and slowing world trade, April’s G-20 summit spurred governments, banks and multilaterals into action. A pledged US$250bn will be poured into the trade finance market over the next two years, and there are signs the announcement is already restoring confidence. However, world trade and trade finance will need more than an extra shot of liquidity to fully recover, writes Rebecca Spong.
New Russian bank secures first for Europe
A new Russian bank, European-Russian Bank (ERB), has opened in the Czech Republic. It is the first Russian bank to win a banking licence to operate within the European Union. The bank’s key focus is on trade finance, focusing on the growing trade flows between Russia and the Czech Republic. Bank chairman Roman Popov speaks to Rebecca Spong about the challenges of breaking into Europe and his ambitions for the bank.
FBN Hires: Vowell heads up FBN’s structured trade commodity finance team
FBN Bank (UK) has set up a structured trade team headed by John Vowell, assisted by Chaste Nyilimana. Vowell moves from his previous role as director of structured trade and finance at Nedbank.
Aircraft Deals: ECAs back first Airbus A380 deal
Export credit agencies (ECAs) are increasingly being called on to support aircraft financings. The new role for ECAs is very much a product of commercial banks offering tougher terms. Shannon Manders reports.
UK Banks: Upbeat and ready to lend?
In light of April’s G-20 talks and announcements of large-scale packages aimed at revitalising world trade, the feeling among UK banks brought together by GTR for a roundtable was far more upbeat than perhaps it might have been six months ago.
Looking at the whole spectrum of the trade finance market, participants discussed both UK and global efforts to kickstart trade and get liquidity flowing again.
Despite a degree of optimism, there were concerns raised that the UK government, and its export credit agency, ECGD, still need to do more to match global efforts to support exports.
If not, the UK market could be left behind as more attractive financing opportunities present themselves elsewhere.
The roundtable was kindly hosted by HSBC.
Legal Review: A rising tide of litigation
With the world rocked by economic crisis, and new trade deals sinking with the rest of the financial ship, how are the lawyers charged with making deals watertight coping?
Is the surge in litigation and restructuring enough to make up for the shortfall in new business for trade and commodity lawyers? Helen Castell finds out.
Insurance: Default trail widens
The consequences of the global downturn in emerging markets have seen private insurance markets beginning to reach deeper into their pockets, writes Kevin Godier.
Ukraine: a likely contender to default?
With markets getting increasingly nervous about the stability of Ukraine, Arjen Thiescheffer, associate director, Omni Bridgeway, examines the likelihood that the country could default.
SCF Finance: Multi-banking platforms raise the stakes
Justin Pugsley talks to Arthur Vonchek, chief executive of Bolero, about its platform and why it is drawing in both banks and corporates.
SCF Finance: Focus on working capital
The harsh economic environment has once again put the financing of small-to-medium-sized enterprises (SMEs) under the spotlight. Though supply chain finance can help SMEs, it is only a partial solution to their problems. But in some cases there are other avenues companies can tap into for funding. Justin Pugsley looks at some of the alternatives.
SCF Finance: Tapping stock market liquidity
Thanks to a novel technique from a US fund, the liquidity of a company’s traded shares can be viewed as an asset. It’s a technique, which is potentially less dilutive than rights issues and can be quicker to arrange, and some companies are turning to it as a source of working capital. Justin Pugsley finds out more.
Central and Eastern Europe Report: Abandoned markets seek help
While few corners of the world have proved immune to the global financial crisis, some regions appear to have suffered the brunt. With currencies crashing and commodities markets – the very backbone of some countries’ foreign trade – collapsing, it’s not surprising that the trade finance flow in Central and Eastern Europe (CEE) has dried to a meagre trickle, writes Helen Castell.
BTA Bank: Out of the frying pan...
Anvar Saidenov certainly doesn’t dodge the tough jobs. For several years, he had the task of regulating Kazakhstan’s over-heating banking sector. Now, he’s been put in charge of sorting out the restructuring of the country’s biggest bank, BTA, which the government declared insolvent in February. Julian Evans reports.
Asia: Reaching a turning point
There is a sense of positivity in the air in the Asia Pacific markets, helped by the effects of the Chinese stimulus package, local bank liquidity and a relatively healthy pipeline of deals, writes Rebecca Spong.
Indonesia Report: A source of hope for Asia
The Indonesian export market is clearly feeling the effects of the crisis as it watches key destination markets dry up. However, with government intervention, relatively solid local bank liquidity and predictions of a 5% growth in the country’s economy in 2010, Indonesia is well-placed to survive, and, perhaps, eventually flourish. Katherine Demopoulos reports.
Iraq shows off its potential
Despite an increase in violence in Iraq during April, the country is continuing its efforts to attract vital investors.
One of the key players in supporting Iraq’s development is the Trade Bank of Iraq (TBI). The bank’s chairman, Hussein Al-Uzri, tells GTR that Iraq is witnessing falling inflation, a developing market economy, and improved security, arguing that 2009 could be a turning point for the country’s economy.
Saudi Arabia: Raiding the rainy-day fund
Investment in infrastructure projects, such as port expansion and economic cities, will provide trade opportunities and protect the Saudi economy from the global crisis, writes Lucy Fielder and Nicholas Noe.
