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International Trade & Pre-Export Finance 2nd Edition

DateDec, 2005
Pages0
Price / format€210 / Hard Copy

€210 





Abstract:
The second edition of the best-selling International Trade Finance: A Practitioner's Guide is structured as a detailed and practical guide to established and emerging techniques in successful trade finance. Across 9 chapters it explains the issues involved in the successful application of modern trade finance practices such as:

- ECA financing,
- guarantees,
- LCs,
- standby LCs,
- structured LC transactions,
- trade finance and pre-export financing,
- forfaiting,
- countertrade,
- tolling
- fraud detection and avoidance.

About the author:

Howard Palmer is the founding Director of Tradefinance Guru Com. Ltd, and the author of Bank Risk Analysis in Emerging Markets (Euromoney Publications, 1998) and International trade and Pre-export Finance: A Practitioner’s Guide, 2nd edition (Euromoney Publications, 1999). He has over 20 years’ experience in the banking industry both as a practitioner, as Head of Trade and Lending and Assistant General Manager of RZB (Austria) in London, and as a consultant lecturer for Euromoney Training, globally.

Mr Palmer is frequently cited as an expert witness in the High Courts of England, Hong Kong and New York, specifically in the area of market practice relating to international trade finance, and is uniquely placed as a banking practitioner, trade financier, lecturer, lawyer and advisor to record global developments in all areas of international trade.








Table of contents:
List of figures ix

Acknowledgements xi

The author xiii

Author’s foreword xv

Preface xvii

Chapter 1: What is trade finance? 21

Contemporary characteristics of trade finance 25

Exit routes 28

Value-impaired debt 29

Chapter 2: The real problem 31

Financing and risk entry points 31

Working capital or real trade finance? 33

The contemporary approach 36

Who is financing the transaction? 38

Chapter 3: Types of generic letters of credit 41

The essential nature of definition 41

Payment, acceptance and negotiation mechanisms 46

The deferred payment L/C 52

Chapter 4: Standby letters of credit 55

Introduction 55

Dos and don’ts 58

Chapter 5: Structured letter of credit transactions 73

The back-to-back letter of credit 73

Risk in back-to-back financing and risk mitigation techniques 80

Analysing the trader 85

Chapter 6: A transactional analysis of trade finance

and pre-export financing 89

Transactional, operational and strategic stances 89

Duplex transactions 94

What kind of bank are you? 96

Chapter 7: The forfaiters and syndications 99

Introduction and traditional mechanics 99

The new forfaiters 104

Forfaiting the deferred payment letter of credit 107

Yesterday’s capital markets 109

Chapter 8: Pre-export financing and tolling 113

The new countertrade 113

The mechanics of Red Clause letters of credit 118

Tolling transactions 120

Buy-back mechanics in high-risk countries 127

Green Clause letters of credit 128

Escrow account financing 130

Beneficiary risk 136

Chapter 9: Ten simple steps to avoid fraud 139

Large amounts are unbankable 139
Returns too high for the market 141
The promise of prime bank names 142
Over-complication of L/C terms 142
No underlying real trade 142
Beware of fashionable commodities 144
New traders 144
The reality of the deal 145
Crocodile 145
Due diligence 147







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