denotes premium content | Jan 9 2009 Trade & Forfaiting Review magazine archive
Volume 6 Issue 5
Editor’s foreword
This month, we take a timely look at the Middle East, as the world watches and wonders if and when a war will take place and what effect it will have on Iraq’s neighbours.
Certainly, Turkey, Iran and Saudia Arabia could be heavily affected; however, places such as the United Arab Emirates and Bahrain should, to some degree, be able to carry on with business as usual. Martin Stone of Aon (p. 31) points out that it is a mistake to lump the entire region into one risk category and, despite war fears, political-risk insurance premiums and trade levels have remained relatively stable. And, as Ashok Das of ABN Amro (p. 27) writes, many of the region’s governments have made remarkable strides in stimulating trade and investment, proving that they are serious about becoming major players in global trade.
Much speculation about the economic impact of a potential war focuses on oil prices, a subject which Courtney Fingar (p. 34) examines in a feature on worldwide oil-flow financing. There is little doubt that key oil-producing and exporting countries will be affected, but to what extent depends on how oil prices react in the event of war; how long a war lasts; and what the United States does afterwards.
Moving further east, the Association of South-east Asian Nations (Asean) is the subject of our regional focus. Clyde Prestowitz and Stephen Olson of the Economic Strategy Institute (p. 12) argue that Asean faces a critical challenge: how best to use China’s rapid economic rise to its own advantage. Meanwhile, Astar Saleh of Deutsche Bank Asia (p. 17) urges the region’s governments to offer better support to export-credit agencies
This month’s personal profile focuses on Margrith Lutschg-Emmenegger (p. 23), who recently surprised the trade-finance community by resigning from WestLB. She talks candidly about what prompted this decision and where she is headed next.
As always, we welcome news and views from our readers, so please don’t hesitate to contact us.
Features
Looking beyond British shores
The Bank of England has decided to cut interest rates in response to clear signs that the UK economy is weakening. Is this the time for UK companies to look beyond Britain to open opportunities in new markets? Yes indeed, writes Russell Warner.
Positive factors
Factoring is slowly but surely shaking off its bad rap and is now growing in popularity. Trade & Forfaiting Review spoke with Tony Cox, new chairman of the Factors and Discounters Association, about what factoring has to offer, how the industry has evolved and what the future holds for it.
Silent confusion
Silent confirmations may be well understood and commonly used in the trade-finance market, but the legal framework within which they operate is not clearly defined. Michael Kenny and David Edwards help navigate the legal nuances involved in the use of silent confirmations for letters of credit.
War drums and oil barrels
Last year was all about Russia. While banks are still keen on it, uncertainties in the Middle East and new structures in Latin America are attracting more attention lately. Courtney Fingar reports on developments in oil-flow financing.
Calm in the storm
Just watching the news these days is enough to cause anxiety over Middle-Eastern risk. However, Martin Stone points out that political-risk insurance premiums have remained relatively stable, as have trade levels, and it is a mistake to place the region’s diverse countries into one risk category.
The winds of change
As the spectre of war looms over the Middle East, many of the region's governments press on with initiatives aimed at stimulating trade and investment. Ashok Das outlines the progress that has been made and considers the changes still to come.
In search of export-finance alternatives
Demand is growing for cross-border financing of small-ticket capital equipment, especially among buyers located in emerging foreign markets. Opportunities abound for insurers and lenders with the moxie to underwrite and finance these trade flows, writes Gary Mendell.
Making a name for themselves
Export-credit agencies in Asia’s emerging markets are not as well known on the international scene as they could be, writes Astar Saleh. Gaining more recognition will require better support from governments and, in turn, better support for the region’s exporters.
Managing China’s ascendancy
There is little doubt that China’s star is rising rapidly. The question is whether its smaller neighbours in south-east Asia can latch on and rise along with it or simply become overwhelmed. Clyde Prestowitz and Stephen Olson examine the unique challenge facing the Association of South-east Asian Nations.
Regulars
Credit margins tighten in Brazil and Indonesia
The first lady of forfaiting
Anyone who’s anyone in the forfaiting industry knows Margrith Lütschg-Emmenegger – and was probably caught off guard by her sudden departure from WestLB. Just days after stepping down as managing director, international trade and commodity finance, she spoke to Courtney Fingar about why she resigned and why she’s packing her bags for sunny Malta.
