Monday, 13 July 2020 07:28

Dubai establishing a role in the region Featured

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To say the world is going through some difficult times is something of an understatement. Our thoughts are with everyone in our trade and trade finance community as we face down humanity’s biggest crisis in our lifetime.

On the business front, the pandemic and essential containment efforts have already resulted in significant business interruption across a wide range of sectors, and we’re only just beginning to understand what the long-term implications could be for trade.

As this publication goes to press, the World Trade Organization has issued a warning that Covid-19 could result in global trade volumes declining by as much as 32% this year, depending on how deep the initial shock is and whether the recovery can start to take shape in the second half of this year. The numbers, as director general Roberto Azevêdo says, are “ugly”, with “inevitable” comparisons to the financial crisis of 2008 and the Great Depression of the 1930s.

Governments, development finance institutions and commercial banks the world over have unveiled a variety of financial support measures, including state-backed guarantees and access to liquidity packages, to meet the demands of the crisis triggered by the pandemic.

These measures have largely been welcomed by the trade community, although, as they’re being rolled out, we’re now also starting to see questions arise as to whether or not these initiatives are sufficient, exactly how they will be spent, and who’s eligible for them. There are concerns too about the lack of harmonisation and co-ordination of these approaches across regions. This may make them difficult for financial institutions to navigate and could prove a costly administrative burden for companies that need to manage conflicting legal schemes.

You will find that a great deal of GTR’s news stories, published online and in these pages, are now dedicated to investigating the impact of coronavirus on businesses, supply chains and finances, the steps that have been introduced to address these effects, and the trends that are evolving, such as the accelerated need for digital solutions to virtually ink trade finance deals and documents.

Read 595 times Last modified on Monday, 13 July 2020 08:43
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    Join Mitigram's Head of Asia Johan Egnell discussing the latest Trade Finance developments in Asia with Sales Director Toh Bee Lian.

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    • Duration 45 minutes
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