Trade Products and
Services
Trade Finance Centre
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Macro and micro issues
Trading companies in small economies
are confronted by barriers of a
relatively small domestic market place
and a lack of resources which
automatically result in a heavy
dependence on international trade.
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Global crisis
The present global operating
environment exposes small islands like
Malta to the developments being
experienced by its trading partners. It is
thus essential that Maltese traders are
equipped with the necessary
knowledge of products and services
available to them to trade successfully.
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Key player in the market
The Bank of Valletta Group is
committed to support businesses
engaged in international trade. In 1993
it therefore set up its Trade Finance
Centre. This centre is equipped with a
team of highly trained trade specialists
who provide expert back-up the
group’s routine operations.
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Trading partners
Even before joining the European
Union our main trading partners had
always been in Europe, North Africa,
middle east and the far east notably
China.
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Customer orientel approach
Our approach is to build closer
business relationships with both our
customers and the wide corresponding
bank network which provides access to
international services.
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It is through this approach that we can
better understand the needs of our
customers. We can then tailor and
structure our financial products and
services to suite best their business
requirements and which enables them
to have the competitive edge required
in international trade.
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Our team of specialists are trained to
guide the customer to seek and
contract the most beneficial payment
terms, whether they are importing,
exporting or trading.
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Trade Finance
Trade finance can be described as the
science on how to manage money,
banks, credit investments and other
assets for international trade
transactions
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Trade Finance is more than regular
lending. It refers to products and
services that assist importers and
exporters to fulfill their financing
needs
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Trade finance is a source of working
capital for many traders in need of
financing to procure, process or
manufacture products before sale in
future
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Trade finance is also important for
individual traders and firms trading
internationally, because it can shape
the competitiveness of their contract
terms
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Tools needed in Int Trade
Trade finance is therefore important for
any country as it facilitates
international trade. As international
trade increases, so does the
importance of trade finance.
Absence of an adequate trade finance
infrastructure is, in effect, equivalent to
a trade barrier
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Importers facing difficulties accessing
trade finance, have limited chance to
offer competitive terms to their
suppliers the like of advance payment
terms, letters of credit, guarantees of
avalized bills for example
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Major Risks in International Trade
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Conversely, exporters with limited
supply of trade finance, will have
difficulties in penetrating the market
because, while importer may prefer to
buy on open account, the supplier may
not be in a position to accept or offer
such terms.
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Challenges
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Trade finance products
Our trade finance facilities include:
Overdraft and loan facilities
commercial letters of credit
Letters of assignment
Back to back letters of credit
Bills discounted
Bills discounted under letters of credit
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All our credit facilities are subject to the
Bank’s credit policy document. Credit
facilities are available from our extensive
branch network all over Malta, our five
Business Centres and our Corporate
Centre.
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The TFC centre handles all facilities
backed by letters of credits such as:
Transferable letters of credit
Letters of assignment
Back to back letters of credit
Trade loans backed by inward letters of
credit.
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I thank you
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