Q. Is it possible to comment on the role of "Credit Guarantees" in SCF? If we consider a chain of suppliers ending to a manufacturer which sells the finished product, and a credit given to this manufacturer transferred to chains before (i.e. suppliers), how a credit guarantee institution can help the finance of this chain?

RW: Trade credit insurance is about helping to finance the whole supply chain. Whilst we do not finance, sellers in every part of the chain can and do buy trade credit insurance which enables their financiers to provide terms. Response: Thanks a lot. What you said, it is exactly done in traditional sense. Now, we have some digitalized platforms of supply chain, the final buyer or manufacturer applies for credit and the banks issues BPO , this BPO is transferred from one chain (supplier) to the other (instead of each chain asks independently for credit using credit insurance/guarantee). So this BPO will be cashed at Bank's counter on due date by the last chain (if not discounted in between). Now if a credit guarantee is issued for the manufacturer to receive the BPO, shall CG be transferred along with BPO via chains? Or not at the due date, just the manufacturer is responsible for honoring the debt of BPO? And if the debt is not paid, then CG will be called. RW: Interesting thought! Would need some work as the insurance is assessed on the payment of the next debtor/link in the chain.

Q. With the impending stock market crash and the BRICS countries moving away from the petro dollar and moving to precious metals backed currency, what are your thoughts on western economies ?

JP: Likely stagflation (recession+inflation), potential stress on public debt issued by already highly indebted countries, and -with a time-lag- increase of defaults by corporation in Europe, in a tense social environment. A key element regarding the timing and the extent will depend on governments and BCE policy.

Tradecast - The umbrella that doesn't open? The future of credit insurance - Trade Finance Global

Trade Finance Talks

Tradecast – The umbrella that doesn’t open? The future of credit insurance

Presented by Tinubu and Allianz Trade

Jan 01 - 01 1970

Event Details

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