Foreign Trade Finance: What is the Impact of the Global Financial Crisis of 2007-2009?
Foreign Trade Finance: What is the Impact of the Global Financial Crisis of 2007-2009?

Author(s): Peter Haiss, Franz Binder, Kushtrim Hajzeri, Wadim Kalmykov
Subject(s): Supranational / Global Economy, Economic policy, International relations/trade, Economic development
Published by: Masarykova univerzita nakladatelství
Keywords: trade finance; foreign trade; financial crisis; ECA;
Summary/Abstract: We analyze the impact of the global financial crisis of 2007-2009 on international trade finance. Two different perspectives are covered: the demand side and the supply side of trade finance. Additionally, the implications for trade insurance and Export Credit Agencies are investigated. Furthermore, the role of the state is discussed as the link between trade, finance and GDP growth is of utmost importance for economic policy actors. Our research draws on survey and financial market data and gives a global overview. We find that on the demand side, both the volume of finance and its mix changed. On the supply side, volume and prices were affected as well. The role of the state has risen in course of the crisis in terms of insuring trade via Export Credit Agencies (ECAs). Ever since, the market moved back to normal, and will be more digital soon.

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