#Trade Finance Outlook 2012 – Strongest Outlook for Emerging#Asian Countries
Wed, 01 Feb 2012 06:37:06 GMT
According to a study conducted by the International Chamber of Commerce (ICC) and the International Monetary Fund (IMF), demand for trade finance products will slow down globally in 2012. This is caused by liquidity shortage of banks resulting from the prevailing debt crisis in the eurozone. The survey finds that the factors contributing to the negative outlook were primarily financial constraints that limit the availability of trade finance for companies. A major finding of the study is that 90 percent of the respondents expect to be largely or to some extend affected by less credit availability at counterparty banks. This number experienced a steep increase up from only 50 percent during the 2008-2009 financial crisis. Also, the survey concludes that the market will observe a two speed financial system. While the outlook for emerging Asia is the strongest, the Euro area has been found to be the weakest. Approximately 60 percent of the respondents expect demand for trade in Asia to improve, while almost 50 percent predicted a further deterioration in the Euro area.
This trend of increasing trade with Asian players has led to an increasing need for commodity trade finance solutions which will be discussed at Commodity Trade and Finance World Asia 2012. For more information on the event, please visit the event website and download the event brochure.
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