denotes premium content | Jan 7 2009 Trade & Forfaiting Review magazine archive
Volume 5 Issue 10
Editor’s foreword
Welcome to the latest, revamped edition of Trade & Forfaiting Review. The new look reflects the fresh ideas of a new team, which includes publisher Andreas Silbermann, consulting publisher Steven Metcalf and myself as editor. We very much hope you enjoy both the style and content.
In this issue, we shall be focusing on the paradox that is Turkey. Despite numerous reports concerning the fragile political and economic situation within the country, syndicated deals for Turkish financial institutions are obviously still being done. Admittedly, the majority of these are not new deals, but pricing is the same or, in some cases, better than last year and the transactions are certainly not struggling in syndication.
This should come as no surprise. Banks are essentially asset hungry and with South America currently off the radar and much of Africa continuing to cause uneasiness, despite some high-value deals, Turkey would seem the natural place to turn. Moreover, the business-as-usual approach could indicate a general belief that whichever political party wins the legislative elections in November there will be little deviation from current efforts to drive forward economic reforms to meet International Monetary Fund targets. Just last month the Turkish parliament passed significant human rights reforms, which marks a huge step towards European Union accession.
Paralleling the forfaiting market against loan syndications, it goes without saying that the former has been relatively quiet. But this has been more than made up for by the vociferous debate triggered by the International Forfaiting Association (IFA) Market Practice Guidelines. We air the views of a dissenter and start the discussions that will no doubt continue at the IFA Conference in late September and perhaps for a while after that.
If you would like to offer your own views on the guidelines or on any other subject, please e-mail me at llaypang@ark-group.com.
Layisha Laypang, editor
Features
The role of CSPs in the NES
The imminent launch of the NES across UK maritime ports has resulted in CSPs becoming a source of information to industry participants unfamiliar with electronic Customs declarations. One such CSP is CNS. Neil Robinson outlines the services on offer during this time of change.
Automating the world of the invoice
In today’s business climate the pressure to reduce overheads is relentless. Most large companies have made significant investments in information technology systems designed to streamline business processes and cut costs. But accounts payable is an area that has defied automation – until now. Alain Falys explains.
Gone is the buzz from global B2B e-commerce?
Not according to Michael Klausner. Some real implementations are taking place within the world of global B2B e-commerce as banks and corporations recognise how e-commerce tools can save time and money when it comes to financial processes. In an environment in which businesses can focus primarily on immediate return on investment, many e-commerce tools are receiving attention due to their fast, cost-effective deployment and real results.
Identifying predictive indicators of risk in trade
Predictive indicators of risk in trade can help to regulate a company’s portfolio by greatly improving its ability to respond to early warning signs. Yet few professionals putting assets on the books are trained in identifying them. Barbara Ismail outlines how and why they are useful.
Changes in the softs sector show Eastern promise
The recent announcement that warehouse receipts may be made fully negotiable instruments in India is exciting, declares Dan Day-Robinson. It highlights the gathering pace of change in a country where, until the last decade, futures exchanges were banned and the use of foreign futures by Indian companies was not permitted.
Financing tool gets green light in Indonesia
In 1998, the Indonesian financial and political system was in disarray, symptomatic of student protests and lack of interest from political risk underwriters. Since then the country’s landscape has changed, requiring the use of new financing techniques. Freddie Lim outlines the concept of warehouse receipt financing in relation to political risk insurance in Indonesia.
Has cocoa become too bitter to swallow?
Recently, the cocoa market has been the subject of intense media scrutiny, with reports of a higher instance of pests and diseases, child trafficking and stockpiling. However, Phil Sigley insists that by addressing issues such as the supply chain system and sustainability, more positive news will undoubtedly follow.
What price chocolate?
With cocoa prices set to trend higher as the tight futures structure persists, all eyes are on key grower the Ivory Coast to determine future prospects for the market, according to news service OsterDowJones.
Turkey: an attractive investment proposition
Despite the negative impact of the 2001 economic crisis on UK and EU exports, Turkey remains a major market for the British. Chris Innes-Hopkins and Roger Short reveal the players who continue to do business in the country.
From plight to Turkish delight
The recurring economic shocks and political uncertainties experienced by Turkey over recent years have been accentuated by profound weaknesses in the banking sector. It is therefore no surprise that reforms were a significant part of the new agreement between the IMF and the Turkish government, writes Geoff Sharp.
Stormy political and economic waters ahead for Turkey
With early elections planned for November, the fate of the incumbent Turkish government looks bleak. Nevertheless, it has vowed to push through as many economic reforms as possible in order to meet IMF targets and lift Turkey out of its economic quagmire. Darren Stubing reports.
Bite back...
Ragnar Granelli, chairman of the Market Practice Committee, International Forfaiting Association, responds to the views of Denis Keenlyside concerning the IFA Market Practice Guidelines.
A question of debate?
Denis Keenlyside discusses the primary concerns encircling the new IFA Market Practice Guidelines and asks whether the guidelines require further open debate prior to implementation.
Regulars
Indicative discount to yield rates
Standard Bank London provides indicative discount to yield rates including analysis for September 2002.
Brazil and Turkey widen credit margin
The LTP Trade Finance Index™ – the independent total return index covering the trade finance asset class – delivered a steady performance in July amid the turmoil afflicting the global equity markets.
Coface @country ratings update
This service provides regularly updated ratings for 140 of the world's most important trading nations and aims to help companies find out where they can trade safely in the world.
Country cover report - Latin America
Current market indications of appetite and the maximum tenors considered.
Personal profile: John O'Mulloy
It is difficult to imagine John O’Mulloy, global head of trade finance and forfaiting at Standard Bank London, as a man with little direction. Truth be known the Oxford and SOAS graduate required a little fatherly assistance to secure his first job, which was with Chase Manhattan Bank 24 years ago. Today, there is no doubt that the global head of trade finance and forfaiting at Standard Bank London has made a mark on the industry. Talk to the people who have worked for him. Yet he has no time for personal praise and admiration. As he tells Layisha Laypang, it’s all about teamwork.
Company profile: HSBC
HSBC has just been named Global Bank of the Year and Bank of the Year Asia-Pacific by The Banker magazine. Based on an interview with Derek Lunt, head of trade services, Europe, HSBC Bank, Layisha Laypang explores the performance of, and developments within, the bank’s international trade finance business.
