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Financing Trade

Financing Trade. LBBC – November 2008. Topics. About BACB The Impact of the Credit Crunch Trade Finance Dynamics Libyan Payment Solutions. BACB’s Libyan Credentials. “Libya in London” UK Head Office “A”- rated & UK regulated Associate HSBC Group > 35 years market coverage

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Financing Trade

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  1. Financing Trade LBBC – November 2008

  2. Topics • About BACB • The Impact of the Credit Crunch • Trade Finance Dynamics • Libyan Payment Solutions

  3. BACB’s Libyan Credentials • “Libya in London” • UK Head Office • “A”- rated & UK regulated • Associate HSBC Group • > 35 years market coverage • Shareholders • Libyan Foreign Bank 26.3% • Physical Presence in Libya • Authorised office/local staff • Libyan Clients • Most Libyan banks & Oil companies

  4. Credit Crunch • Started with sub-prime US Mortgages • Heavy losses leading to some bank failures and widespread rescue packages • Loss of trust between banks • Freezing up of interbank markets • Rise in borrowing costs • Move to wider economy • Economic slowdown • Collapsing asset and commodity prices • Deteriorating terms of trade • Recession

  5. Credit Crunch – Oil Prices

  6. Credit Crunch – Freight Rates

  7. Establishing Trust

  8. Libyan Challenges • Bureaucracy • Market is opening • New policies in place e.g. Need for Libyan partners • Legal, Accountancy and Tax issues • Change usually takes longer in practice • Complexity • NOC • Oil Companies • Intermediaries e.g. Oil Sector

  9. Libyan Challenges • Oil Sector (continued) • Arrival of the majors • Closure of EU Procurement Offices

  10. Libyan Challenges • Communication • Email / Mobile communications • Use of English in international trade • Bonding • Wording (e.g. non-contestation clause) • Acceptable bank names • Managing costs • Getting Paid ! Equipment Consultancy & Training Opportunities

  11. Trade Solutions

  12. Libyan Payment Solutions • BACB provides a broad range of Libyan payment solutions including: • OPEN A/Cas paying agent • COLLECTIONS London presentation (BACB clients) • L/C ISSUANCE existing facilities for oil sector clients • L/C CONFIRMATION as correspondent of Libyan banks • BONDING Bid / AVP / Performance • BACB aims to be as flexible as possible

  13. Financing Trade LBBC – November 2008

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