GTR Magazine - July/August 2009
GTR Magazine: July/August 2009
Latin American Report: Commodities prove worth the gamble
Latin America has a few special cards up its sleeve to help tackle the downturn. While western governments dug themselves into deeper debt during the early boom years of this decade, many in Latin America stashed away piles of commodity-earned cash and are now dishing it out to boost liquidity in trade finance, writes Helen Castell.
Export Finance Roundtable: Long-term back-up required
GTR gathered together the global heads of export finance from the major international banks to discuss how they are working with export credit agencies (ECAs) and tackling the challenge of shrinking liquidity and lack of risk appetite.
Increased demand for ECA cover has put the agencies under unprecedented strain, raising questions over their ability to meet these new challenges.
The roundtable was kindly hosted by Standard Chartered in London.
Profile: Falcon hits new heights
"Boutique” is perhaps an inadequate description for a trade services company turning over US$1bn and with a presence in four continents. For the first time, independent trade services specialist Falcon Group broke through the US$1bn turnover barrier in FY 2008, but there are no plans for the company to pause for breath.
Trading companies: Returning to market with success
There are signs of life in the syndications market with the successful signing of a number of credit lines for leading trading companies, with some securing oversubscriptions.
Miga tools up to meet market needs
Virtually no developing country, from a transition economy in Eastern Europe to the poorest countries in Sub-Saharan Africa, has escaped the impact of the widening global economic crisis. With a decline in foreign direct investment (FDI), steady economic growth seen in the developing world is slowly being eroded. In response to this, the Multilateral Investment Guarantee Agency (Miga) has launched a number of initiatives.
Middle East: Dolphin deal spurs new hope
Signals coming through indicate that the hydrocarbons financing market in the Middle East may be reviving again, writes Kevin Godier.
Trade funds: a refuge for investors?
Up until the last quarter of 2008, trade finance funds were one of the hottest new kids on the block. Surging commodity prices created a need for more financing than banks alone could provide and regulations, like Basel II, helped a troop of new funds scoop up risk that banks didn’t want clogging up their balance sheets. Much has changed, writes Helen Castell.
Forfaiting and Trade Finance: Waiting for answers
Defaults among banks in the emerging markets are making some uneasy about the future of forfaiting and trade finance. Recent closures of forfaiting desks have exacerbated these concerns. But for others, market conditions are slowly improving, writes Rebecca Spong.
Nordic Report: Slump in Nordic exports hits banks
Nordic export and import volumes have dropped significantly. The rising tide of loan losses in the banking sector paints a worrying scenario for the main players in the market. Shannon Manders reports.
Nordic ECAs lend their support
Commercial banks’ reluctance to extend credit is creating big opportunities for export credit agencies (ECAs), who are filling the gap for much-needed export finance. ECAs operating in the export-dependent Nordic region have stepped in, essentially with programmes for short-term lending of working capital, credit guarantees aimed at small and medium enterprises (SMEs), and by raising the ceilings for their business volumes. Shannon Manders reports.
Supply Chain Finance: Sharing out capital
Liz Salecka speaks to Dean Francis at software provider 3i Infotech about the opportunities Turner’s recommendations could have on the market.
Supply Chain Finance: Stretched to the limit
As many as 63% of British firms and 48% of German companies want to extend payment terms with their suppliers, but pressures on cashflows, combined with credit scarcity, make it impossible for suppliers.
Supply Chain Finance: Supermarkets embrace SCF
RBS has been selected as the funding provider for Sainsbury’s Trading Finance Platform (TFP), an internet-based payment management system, developed by PrimeRevenue, which was installed in 2007 to provide suppliers with online access to account information and benefit from early payments.
GTR Asia: Asian perspectives
Geoff Parry, global head of trade asset management, transaction banking, at Standard Chartered, provides his comments on key trends across the region.
GTR Asia: Soft commodities harden up
2008 was a doubly difficult year for commodity trade financiers in Asia, contending with both the huge volatility in commodity prices and then the crushing blow of the credit crisis.
GTR Asia: Asia’s ECAs fill the gap
More and more blue chip borrowers in Asia are tapping the export credit market, and the demand for support from Asian export credit agencies (ECAs) shows no sign of abating, writes Patricia Lee.
GTR Asia: Indonesia’s fuel market opens up
Bilateral institutions FMO and DEG, together with ING, have signed a long-term facility agreement for an Indonesian petroleum storage terminal. This deal signifies a move towards the liberalisation of the country’s fuel market, writes Shannon Manders.
GTR Asia: Pakistan: still a good place to do business?
As Pakistan’s army declares victory in the Swat valley, Adrian Lewers, head of political and trade credit risk at Lloyd’s insurer Beazley,
Zimbabwe: Waiting on the west
African states and banks have provided Zimbabwe with more than US$1bn in trade credit lines. Support from regional bodies has provided a much-needed injection of cash, but in the absence of long-term financing or western loan packages, the country is still far from recovery, writes Shannon Manders.
Zambia: Full of promise?
The Lumwana mine, the largest open-pit copper mine in Zambia, was officially opened in late April. It signified a turning point for the country, promising to provide much-needed economic stimulus to the Lumwana region.
However, with prices of copper falling, and the cost of production soaring, some international investors are reducing their operations. Intervention from the Zambian government has also caused concerns about the future of the mining sector, writes Zoe Alsop.
Middle East: Iraq rebuilds
Years of war, sanctions and global isolation has left Iraq’s banking sector in pieces. Sir Claude Hankes, advisor to the Trade Bank of Iraq, is one of those charged with putting it back together again. He argues that the country is ready to become an “economic dynamo” of the Middle East. Rebecca Spong reports.
