Trade Finance – Key Factor for International Economic Growth
Trade Finance – Key Factor for International Economic Growth

Author(s): Vessela Todorova
Subject(s): Politics / Political Sciences, Politics, Economy, International relations/trade, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: trade finance; bills of exchange; negotiable trade finance instruments; acceptance houses; documentary credit; documentary collection; cash-in-advance; open account
Summary/Abstract: Similar world trade finance instruments stayed in use from long-term perspective more than eight centuries. The bill of exchange has proven to be extremely flexible. Its transformation over time reflected the evolution of global trade finance market. Nowadays the structure of trade finance market is the same as it was at its origin. Local banks and local branches of world banks offer to firms a range of products. In combination with credit insurance or guarantees as additional government`s support medium-term trade finance (or export finance) has been comparatively more flexible in comparison with short-term trade finance. Trade finance kept its low-risk profile in the turbulence times.

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