The inaugural Global Heads Export Finance Forum (GHEFF) took place in Paris today (22 January 2010) hosted by Sociéte Générale (SG) Export Finance and in cooperation with Euromoney’sTrade Finance Magazine. With 13 heads taking part, this was the largest and first such gathering of global heads outside of Euromoney Seminars annual Global Export Finance (GEF) Conference. Banks taking part in the Forum are estimated to represent around 80% of the ECA-backed global trade market.
Key issues of the export finance business line were discussed that have serious implications for global trade. Topping the list of topics was the detrimental effect on banks that the Basel II proposals to strengthen capital and liquidity are expected have. Takahisa Yano, Global Head of Trade Solutions and Export Finance. Global Trade Finance Department, SMBC Europe Ltd comments: “The Basel II proposals disadvantages export finance against commercial loans and our business will be affected accordingly.”
There was general consensus that within most of the financial regulatory bodies around the world that there is a lack of understanding of the export finance product. Patrick Brockie, Global Head, Export and Agency Finance, Citi, comments: “The regulators have overlooked us. Export and agency finance should be recognized as a product and a business.”
In another key issue, the impact that the Equator Principles (EP) rules coming into force will have on export finance prompted serious debate and concern. Denis Stas-de-Richelle, Global Head of Export Finance, Société Générale, states: “This has serious implications for all banks involved in export finance. If we do not act collectively we will be in a very difficult position.”
Brockie at Citi also notes: “Exporters are going to suffer if we are prevented from providing finance. For smaller transactions, in particular, this is going to be a killer.”
The group agreed that a representation would be made to the OECD on this matter when it discusses the EP issue on 5 February.
Other major topics discussed by the global heads included short-term transactions backed by ECAs, risk and pricing of transactions. A full report on the meeting will be available in the February issue of Trade Finance.
Global heads of export finance business lines from Société Générale, BNP Paribas, Calyon, Natixis, Santander, BBVA, Citi, HSBC, ING, Standard Chartered Bank, SMBC, Bank of Tokyo Mitsubishi UFJ, and Deutsche Bank took part in the discussions.
Bankers and banks taking part included: Denis Stas-de-Richelle, Global Head of Export Finance, Société Générale; Olivier Paul, Global Head of Export Finance, BNP Paribas; Henri D’Ambrieres, Head of Export Finance, Calyon; Patrick Brockie, Global Head, Export and Agency Finance, Citi; Eric de Jonge, Global Head of Export Finance, ING Bank; Peter Luketa, Global Head of Export Finance, HSBC; Nick Shaw, Head of Structured Trade Finance, BBVA; Jorge Tapia, Global Head of Trade, Export and Commodity Finance, Santander; Charles Carlson, Global Head of Structured Export Finance, Standard Chartered Bank; Takahisa Yano, Global Head of Trade Solutions and Export Finance. Global Trade Finance Department, SMBC Europe Ltd.; Naoki Nishida, Global Head Commodity and Structured Finance, Bank of Tokyo Mitsubishi and Nelly Serkisian, Global Head of Export Finance, Natixis. Klaus Michalak, Global Head of Structured Trade & Export Finance, of Deutsche Bank was linked in by conference call.
GHEFF is an initiative of Trade Finance Magazine – a Euromoney publication – and has grown out of the Euromoney Seminars/Trade Finance Magazine annual Global Export Finance Conference (GEF), which this year enters its 11th year. GEF 2009 was held in Berlin, where 400 practitioners and corporates took part over the course of three days. At the Berlin conference, the closed doors global heads meeting on day one saw head bankers request a further meeting to discuss crucial issues further surrounding the export finance business line and its importance to global trade.
