OMG - is Autumn really here!!!

With the chilly weather approaching - and up here - soon ro darn cold! - thoughts turn to those international trade trips to Latin America.

Why? Why structured trade finance? What is STF? and who cares?

You should. Read this quote:

“A worldwide recovery is materializing, led by the developing economies of East Asia and India. Data released last week indicate that global trade increased at its fastest pace in five years,” FED member Dennis Lockhart said. “Foreign demand is expected to add about 1.3 percentage points to U.S. gross domestic product in the third quarter once the final numbers are calculated.”

STF is a structuring technique to provide financing to companies and in countries that are unable to provide guaranties or secure collateral. Want to try to enforce a collateral claim in Uzbekistan? I'm right behind you.

By lending against trade receivables and accessing government programs such as export credit agencies and other trade promotion programs, a good banker can structure a solid transaction that is safe and attracts additional provate funding. In a nutshell - that's STF.

It is important for you because the emerging markets are looking at growth rates next year of over 5% - the IMF prediction for the US is 0.8%.

Suddenly it all makes sense doesn't it.