Copying and distributing are prohibited without permission of the publisher
Market View: Asian exporters and the LC conundrum
04 December 2008
Asian exporters have found access to letters of credit considerably harder of late. Trade Finance asks a panel of financiers in the region to assess how severe this problem really is.
letters of credit
According to news reports Asian exporters have seen their cargo pile up at the docks next to empty ships as they fail to get the necessary bank guarantees or letters of credit to ensure their exports reach their intended markets.
Trade Finance approached a panel of specialists to ask whether these reports are true and if so how severe is the problem? Similarly, if trade credit is becoming scarce who will make up the shortfall? Are Asian exporters right to be concerned?
Roger Packham, regional head of trade finance, Asia Pacific, Deutsche Bank:
"Whilst Asia is not immune to the global economic slowdown, the current environment, and corresponding shortage of liquidity to support global trade, it has in fact prompted the increased use of traditional trade instruments, such as letters of credit assources of funding/financing.
"Corporates with existing credit lines will generally find no issues getting the funding. However,...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Taking a free trial will give you access to the latest news and analysis for seven days
(excluding some surveys and articles). Start your free trial today.