Trade Finance: China Weighs
Multilaterals, ECAs and China are covering for traditional providers of trade finance, who are expected to deploy less this year. However, commercial banks are poised to jump back in.
by Ben Miller
Petrobras rewarding visit to China in May underscores one
trend while bucking another. The 10-year $10 billion loan it
signed with the China Development Bank was a milestone in LatAm
trade finance, for its size and geopolitical
The deal funds
Petrobras purchase of Chinese goods and services in the
development of new oil fields. Excluding that and a similar
transaction for América Móvil, however, LatAm
trade finance was down substantially in the first five
Volume in the
region stood at $1.71 billion through June 1, according to
Dealogic, compared to $7.71 billion in the corresponding period
of 2008. Last years total was $24.60 billion, up from
$22.05 billion in 2007.
Citi, BBVA, BNP Paribas, Société
Générale, and Calyon were the top five private
trade finance lenders by volume in 2009 through June 1,
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