Launched: The ITFA-TFG LIBOR for Trade Finance hub - Trade Finance Global

Launched: The ITFA-TFG LIBOR for Trade Finance hub

By Joana Fabiao

Joana Fabiao is the Marketing Manager at Trade Finance Global (TFG). She holds a BA in International Business from the University of Westminster, with a core focus on Global Economic Issues, International Financial Management and Organisational Behaviour. She also holds a certificate in Bloomberg Market Concepts. Prior to working at TFG she worked as Junior Consultant in the Marketing and Events Department at Westminster Business Consultants, focusing on their social media campaigns, content and marketing strategy.

Last updated on 05 Jul 2022

17 Jun 2021 2 min reading time

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International Trade and Forfaiting Association

London, UK. The International Trade & Forfaiting Association (ITFA) and Trade Finance Global Trade (TFG) have today launched the LIBOR transition for trade finance hub.

The change from the London interbank offered rate (LIBOR), the “world’s most important number”, to risk-free rates compounded in arrears as opposed to calculated upfront before the start of an interest period, is one of the most significant legal, commercial, and regulatory change events to hit the financial markets this century.

The purpose of this hub is to provide resources to the trade finance community. LIBOR transition is particularly challenging for trade finance. As we describe later, many trade finance products either require a discount rate or are offered to borrowers who are, for a number of reasons, unable to deal with the challenges posed by the use of a rate calculated in arrears.