denotes premium content | Jan 9 2009 Trade & Forfaiting Review magazine archive
Volume 6 Issue 8
Editor's foreword
As this issue went to press, Romania received some good news from the European Union when enlargement commissioner Guenter Verheugen said the country could conclude accession talks by the end of October 2004 and expressed optimism that it could join the union by 2007.
But as Trevor Utting (p. 19) writes, there is much work to be done before then; he warns that Romania is facing a pivotal, and familiar, moment and the government will need to show more resolve than it has in the past in pursuing reform. As it heads towards eventual EU membership, Romania is attracting increasing attention from international trade-finance banks. Robert Fleischmann (p. 24) provides an overview of what’s on offer there in terms of trade finance.
Widening the scope to the regional level, we talk to Rudolf Putz (p. 26) about the European Bank for Reconstruction and Development’s efforts to facilitate trade in Central and Eastern Europe.
Meanwhile, in our French bank survey, Alain Biscaye of BNP Paribas, Hervé Uzan and Daniel Vignial of Credit Agricole, and Didier Locquet of Natexis Banque Populaire (p. 31) offer some of the reasons why French banks have been performing well despite the global economic downturn.
The subject of our personal profile this month is Philip Merrill (p.14), who was sworn in earlier this year as chairman and president of the Export-Import Bank of the United States. He outlines his top priorities, which include improving customer service, reducing transaction cycle times and embracing the new economy.
As always, we welcome your news and views, so please feel free to contact us.
Courtney Fingar, editor
Features
Factoring in Germany
Despite growth in recent years, asset-based lending is still considerably less popular in Germany than in many other markets, such as the United Kingdom. But Terry Hannaway sees room for expansion in the German factoring market, and much potential in the growing Mittelstand class.
At the crossroads – again
Romania is poised in a familiar position: its sovereign credit is shaky, structural weaknesses persist, and the government is promising reform. Trevor Utting warns that transformation of the economy demands tough action, something for which the current government has shown little stomach.
Trade finance in Romania: A promising outlook
Romania is attracting increasing attention from the international trade-finance community, including major Austrian banks. As Robert Fleischmann writes, this is reflected by growing competition and, recently, a sharp decrease in margins.
Guaranteeing a future
Through its trade facilitation programme, the European Bank for Reconstruction and Development provides guarantees to international confirming banks doing business in Central and Eastern Europe and the Commonwealth of Independent States. In doing so, it takes the political and commercial payment risk of transactions undertaken by issuing banks in those regions. Courtney Fingar spoke with Rudolf Putz, senior banker, financial institutions, about the programme.
Springtime in Paris
In a dreary global economic climate, French banks generally have faired better than their British and German counterparts. Top trade-financiers at BNP Paribas, Credit Agricole Indosuez and Natexis Banque Populaire explain to Courtney Fingar what they are doing right.
Electricity trading in France: Finally a reality?
In spite of the success of the Paris power exchange Powernext since November 2001, electricity trading in France has been hampered by limitations on access for French electricity purchasers. Christophe Jacomin analyses legal developments in this area.
New on the Horizon
Tough new regulations like the Sarbanes-Oxley Act and Basel Capital Accord mean that companies simply cannot afford to mismanage operational risk. JPMorgan thinks it has just the solution. Craig Spielmann explains how the Horizon risk-management tool can help companies improve corporate governance and satisfy regulators.
The rating game
Rating agencies are paying ever more attention to operational risk in assessing financial institutions. Rather than fear this development, Giles Bryan argues, smart banks will turn transparency in operational risk and compliance with Basel II into a competitive advantage.
Regulars
General political risk rating guide for contracts and investments
Excelling at Ex-Im
Philip Merrill was sworn in earlier this year as chairman and president of the Export-Import Bank of the United States. As he tells Courtney Fingar, his top priorities include improving customer service, reducing transaction cycle times and embracing the new economy.
LTP Trade Finance Index: Positive-return trend continues
The LTP Trade Finance Index rose by 0.30% in April. This positive return continued the trend of the first three months of the year, with the Latin American region providing the most significant gains over the month.
Indicative forfaiting rates
The analysis from Standard Bank London:
