Coronavirus has had a substantial impact on the availability of trade finance in emerging markets. It has increased risk on many types of credit exposure and forced banks to explore all options for allocating capital towards businesses affected by the crisis.
Attendees at a seminar held by financial industry think tank Eurofi in April learned how the major trade finance banks were engaging in more synthetic risk transfer activity. In the same month, the International Finance Corporation (IFC) and Crédit Agricole CIB announced a synthetic risk transfer that saw IFC provide a $182 million guarantee on a $4 billion-equivalent reference portfolio composed mostly of trade finance assets in emerging markets.
Thanks for your interest in Euromoney!
To unlock this article: