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Access to Trade Finance in Times of Crisis

Access to Trade Finance in Times of Crisis
Author: Mr.Márcio Valério Ronci
Publisher: International Monetary Fund
Total Pages: 146
Release: 2006-02-27
Genre: Business & Economics
ISBN: 9781589064041

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Trade finance has long been an important component of international financial flows. Firms in emerging market economies, in particular, rely heavily on bank-financed trade credits to support their export and import activities. This book examines why and how much trade finance flows decline during financial crises, with case studies of several Asian and Latin American countries. The authors draw from the analysis to present options for mitigating trade finance declines in the event of future crises.


Inter-Firm Trade Finance in Times of Crisis

Inter-Firm Trade Finance in Times of Crisis
Author: Anna Maria C. Menichini
Publisher:
Total Pages: 25
Release: 2016
Genre:
ISBN:

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The paper discusses the main features that distinguish inter-firm international trade finance from alternative sources of financing. On the one hand, inter-firm trade finance could help overcome informational problems associated with other lending relationships; on the other, it may contribute to propagate shocks due to the interconnection among firms along credit chains. The paper evaluates the potential effects of a financial crisis on the use of trade credit for firms operating in developing countries. It argues that while the advantages of trade credit might remain largely unexploited due to poor legal institutions, the disadvantages might be exacerbated because of these firms' greater exposure to a default chain. Based on these arguments, a menu of choices is identified for what policymakers can do to boost firms' access to inter-firm trade finance in times of crisis.


Trade Finance

Trade Finance
Author: Vessela Todorova
Publisher:
Total Pages: 0
Release: 2023-05-04
Genre: Business & Economics
ISBN: 9781803697086

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Trade finance will remain an important component of international financial flows. Historically trade finance has tended to be highly vulnerable in times of crises. The global financial crisis in 2008-2009 and particularly the disproportionate drop in trade push the interest of the economists to the issues of trade finance. The market of trade finance proved to be vulnerable to financial shocks. The lower access to secure, proper and cost-effective trade financing can stop the potential for trade to function as a vector of economic growth. The COVID-19 crisis is additionally sharpening the barriers in trade finance and in a number of strategic and important directions from the economic development. The uncertainties as a result from the pandemic provoke greater demand for trade finance products. It is supposed that the effects will be stronger than the consequences following the global financial crisis due to the extensive and deep economic effects of COVID-19.


International Trade and Letters of Credit

International Trade and Letters of Credit
Author: Matthieu Crozet
Publisher:
Total Pages: 30
Release: 2021
Genre: COVID-19 Pandemic, 2020-
ISBN:

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This study argues that the ability to mitigate risks associated with international trade is particularly important at times of heightened uncertainty, such as the economic crisis caused by the Covid-19 pandemic. Risk mitigation can be achieved through letters of credit (LCs), trade finance instruments providing guarantees to trading partners. As their use varies across products, exports of some products are more resilient than others during times of increased uncertainty. This situation reverses in times of financial crises when distressed banks may limit the supply of LCs. Our analysis using data on US and EU-15 exports during the Covid crisis and the Global Financial Crisis provides empirical support for these hypotheses.


The Financial Crisis Inquiry Report

The Financial Crisis Inquiry Report
Author: Financial Crisis Inquiry Commission
Publisher: Cosimo, Inc.
Total Pages: 692
Release: 2011-05-01
Genre: Political Science
ISBN: 1616405414

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The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.


Impact of Global Issues on International Trade

Impact of Global Issues on International Trade
Author: Co?kun Özer, Ahu
Publisher: IGI Global
Total Pages: 291
Release: 2021-06-25
Genre: Business & Economics
ISBN: 1799883167

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International trade is vital in today’s world; international trade can be affected by a number of issues such as terrorism, economic crises, and pandemics such as COVID-19. It is crucial to understand the impact these global issues have on international trade and what happens to trade when global issues arise. A comprehensive guide of these issues is needed to provide background and understanding about international trade and its relationship with global issues. Global issues occasionally dominate a continuing theme of the international globalized world: global crises, war, security issues, global pandemics such as COVID-19, and trade wars. Global cooperation is required to solve such problems. Economically intellectual thinking will enable the development of guiding policies in solving these global problems. In this book, the effects of global issues on international trade will be evaluated, and policy recommendations will be made for the solution of the global issues. Impact of Global Issues on International Trade is a critical reference source that uses analytic research to analyze the effects of global economic and financial crises as well as global health crises and their impact on international trade. Pandemics such as the COVID-19 pandemic, the global economic crisis, and trade wars are discussed, and political suggestions are made to mitigate negative impacts. Covering a wide range of topics such as financial fragility and trade fairs, it is ideal for trade specialists, policymakers, government officials, managers, executives, economists, academicians, researchers, students, and industry professionals.


Trade Finance and SMEs

Trade Finance and SMEs
Author:
Publisher:
Total Pages: 44
Release: 2016
Genre: Export credit
ISBN: 9789287040701

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Trade Credit, the Financial Crisis, and SME Access to Finance

Trade Credit, the Financial Crisis, and SME Access to Finance
Author: Santiago Carbo-Valverde
Publisher:
Total Pages: 43
Release: 2014
Genre:
ISBN:

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Mounting evidence indicates that firms, particularly SMEs, suffered from a significant credit crunch during this crisis. Little research exists on how SMEs coped with this problem due to a lack of data in the U.S. and elsewhere. We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the crisis. Using firm-level Spanish data we find that credit constrained SMEs depend on trade credit, but not bank loans, and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on bank loans not trade credit.