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Keeping the ice open for Russia/CIS financing
07 February 2012
As some banks continue the de-leveraging process, the fall-off in levels of trade financing in Russia/CIS has been significant. Given the importance of this region to the health of the global trade profile, how will the vast needs of corporates based in, and operating in, the region be financed going forward? Jonathan Bell examines the scene.
Read more:
Russia
commodity finance
eurozone crisis
Russia pricing
pre-export finance
PXF
SG CIB
BNPP
WestLB
With European banks traditionally playing the major role in financing trade - particularly commodities – in Russia and the CIS, and given the eurozone crisis and the need for many banks to de-leverage, it is little wonder that the high levels of trade financing have dropped off a cliff in recent months as the market freezes up.
The big question now is how will corporate financing needs be met in what is a testing, but traditionally sound and lucrative, trade financing market for those that know how to operate there? Will it be selective fishing by those remaining in the market, or is there the opportunity to keep the ice open for other players?
At the end of last year, one commodity pre-export finance (PXF) deal – that of Norilsk Nickel – certainly stood out for succeeding when many banks seemed to be unable to cope with further lending given the severemarket...
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