Trade Finance and COVID-19
Trade Finance and COVID-19

Author(s): Vessela Todorova
Subject(s): Economy, Supranational / Global Economy, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Trade Finance; Documentary Credit; Documentary Collection; Cash-in-advance; Open Account
Summary/Abstract: Being at the low-risk, high collateral end of the credit spectrum trade finance plays a significant cant role in 80% of world trade. The market proved to be vulnerable to financial shocks. The current COVID-19 crisis is additionally sharpening the barriers in trade finance and in a number of strategic and important directions from the economic development. The economists argue that the uncertainties as a result from the pandemic will provoke greater demand for trade finance products over the medium term. It is supposed that the effects will be stronger than the consequences following the global financial crisis due to the extensive and deep economic effects of COVID-19.

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