March 2024

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29Mar2024

New European Regulations: 30-Day Payment Terms to Support SMEs

Posted By: DEVLHON Consulting

In a decisive move, European Parliament members have adopted new regulations aimed at addressing the persistent issue of late payments, a particularly harmful scourge for small and medium-sized enterprises (SMEs) across the European Union.

European Parliament Members Act on Payment Delays

As a significant portion of invoices within the EU remains unsettled on time, the new measures introduce a strict 30-day payment deadline for transactions between businesses and between governments, with some exceptions under specific conditions.

Enhancing Payment Discipline

The Committee on the Internal Market and Consumer Protection has adopted its position on the regulation aimed at enhancing payment discipline among various entities, including large enterprises, SMEs, and public authorities.

Crucial Support for SMEs

This initiative underscores a significant effort to bolster the competitiveness and resilience of businesses, especially SMEs, which represent 99% of EU enterprises and are crucial to the economy.

Maximum 30-Day Payment Deadline

The proposed regulation provides for a maximum 30-day payment deadline, with the possibility of extension up to 60 days for inter-business transactions, provided it is explicitly agreed upon in the contract.

Specific Measures for Certain Sectors

Special considerations are given to the retail sector, allowing payment terms of up to 120 days due to factors such as seasonality and product turnover, with the European Commission set to release guidelines for clarity.

Protection Against Payment Delays

To protect businesses, especially SMEs, against harmful payment delays, the regulation mandates automatic compensation for late payments, ranging from 50 to 150 euros per transaction, depending on the value.

New Enforcement Mechanisms

New enforcement and recourse mechanisms are introduced, alongside awareness-raising measures and promotion of electronic tools to expedite payment processes.

Establishment of a European Observatory on Payment Delays

A European Observatory on Payment Delays will be established to monitor and disseminate data on payment practices, thus enhancing transparency and accountability in member states.

Conclusion: Towards Better Financial Health for European SMEs

This initiative is hailed as a major step forward in promoting a more responsible and predictable payment culture, beneficial to the entire European economy.

Next Step: Final Adoption at April Plenary Session

The next step will involve voting at the April plenary session, where the regulation will be examined to establish the Parliament’s final position. This development is part of a broader strategy to improve the operational environment for SMEs in Europe, thereby contributing to strengthening the growth, innovation, and competitiveness of the EU as a whole.

25Mar2024

 BBVA, IFC, and JICA Unite for Sustainable Construction in Peru

Posted By: DEVLHON Consulting

Joint Initiative

The International Finance Corporation (IFC) and the Japan International Cooperation Agency (JICA) have finalized a $400 million green financing package for BBVA in Peru. This partnership aims to support sustainable construction and energy efficiency projects in the country.

 Progress and Funding

Initiated in June 2023 with an initial contribution of $150 million from the IFC, the project recently reached a significant milestone with the disbursement of an additional $250 million. JICA is set to co-finance $150 million of this amount.

 

 Objectives and Implications

This financing aims to strengthen BBVA’s lending capacity for sustainable construction projects by providing guidance on obtaining environmental certifications and supporting the development of energy-efficient projects. Representatives from each organization have emphasized the importance of promoting sustainability in Peru.

 

 Future Perspectives

The IFC estimates that green buildings represent a significant investment opportunity in emerging markets, with a potential of $24.7 trillion by 2030.

 

 About the Actors

– BBVA: A global financial group committed to transitioning towards a greener and more sustainable world.

– JICA: The Japan International Cooperation Agency, working towards sustainable development in Peru and beyond.

– IFC: The largest global development institution focused on the private sector in emerging markets.

This collaboration will contribute to combating climate change and achieving sustainable development goals in Peru.

 

 

 

Sources : https://www.tradefinanceglobal.com/posts/ifc-and-jica-green-finance-trade-finance-global/

https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=28077

https://www.jica.go.jp/english/information/press/2023/20240125_31.html

20Mar2024

Revolutionizing Trade Finance for African SMEs

Posted By: DEVLHON Consulting

A new era of economic development is dawning for Africa with the launch of a revolutionary trade finance initiative designed specifically to address the funding gap for small and medium-sized enterprises (SMEs) on the continent.

Strategic Partnership for Enhanced Access to Funding

 

Investec and Frontclear have joined forces to develop an innovative solution tailored to the needs of African SMEs. This solution is based on a deep understanding of local realities and integrates existing trade finance mechanisms while remaining adaptable to future digital advancements.

 

Promising Inaugural Transaction

 

In the first transaction of its kind, Investec provides a facility to Frontclear, which uses these funds to enter into a repurchase agreement with the portfolio of a local African bank’s government bonds. Supported by a global guarantee from a development finance institution, this operation releases additional liquidity for SME trade finance in Africa.

 

A Holistic Approach to Drive Economic Development

 

This initiative goes beyond mere liquidity provision. It aims to reduce the trade finance gap in Africa and promote more inclusive economic development. By recognizing the crucial role of local African banks in SME financing, Investec and Frontclear pave the way for sustainable economic growth on the continent.

 

Conclusion: A Major Breakthrough for Africa

 

In summary, the joint initiative of Investec and Frontclear represents a significant breakthrough in African trade finance. By combining financial expertise with a commitment to economic development, these two institutions open up new opportunities for African SMEs and contribute to building a more prosperous future for the entire continent.

 

 

Sources : https://www.tradefinanceglobal.com/posts/investec-frontclear-launch-trade-finance-solution-to-boost-african-smes/

https://www.tradefinanceglobal.com/posts/investec-frontclear-launch-trade-finance-solution-to-boost-african-smes/

18Mar2024

Trafigura consolidates its position on the commodities market

Posted By: DEVLHON Consulting

Renewal of credit facilities and extension of financings

Trafigura Group Pte Ltd (“Trafigura” or the “Company”), a global commodities trading company, has recently successfully completed the renewal of its 365-day European syndicated revolving credit facilities (the “365-day ERCF”) totalling USD 1.9 billion and the extension and increase of its USD 3.7 billion 3-year facility (the “3-year ERCF”).

Excess demand and confidence of banking partners

Initially set at USD 1.5 billion, the 365-day facility met with strong excess demand. Christophe Salmon, CFO of Trafigura Group, said: “The successful renewal of our main European revolving credit facility, which is a key pillar of our financing model, demonstrates the confidence of our banking partners. We are maintaining the company’s liquidity at record levels following this refinancing and extension process.”

 

Commitment to sustainability

The Company has opted for Sustainability Linked Loans (“SLLs”), linked to specific Key Performance Indicators (“KPIs”) to reinforce its sustainability initiatives. These KPIs include the reduction of greenhouse gas emissions, the expansion of the renewable energy portfolio and the adoption of voluntary principles on safety and human rights.

 

Financing structure and participation of financial institutions

The 365-day facility was orchestrated by a consortium of seven Mandated Lead Arrangers & Bookrunners (“MLABs”), with the participation of 47 other financial institutions. Société Générale was appointed Global Coordinator, while Sumitomo Mitsui Banking Corporation and Natixis were appointed Sustainability Coordinators.

 

Outlook

This initiative demonstrates Trafigura’s continued commitment to sustainability and its ability to maintain a strong position in the commodities market in an uncertain global economic environment.

Our Trade Finance Offer : Offer AML-CFT Trade Finance (1) (1)

 

Sources: 

https://www.trafigura.com/news-and-insights/press-releases/2019/trafigura-group-pte-ltd-signs-usd205-billion-european-multicurrency-syndicated-revolving-credit-facility/

https://www.tradefinanceglobal.com/posts/trafigura-raises-1-9b-in-new-credit-facilities-eyes-expansion/

15Mar2024

“Mitigram and Enigio Conclude a Strategic Partnership”

Posted By: DEVLHON Consulting

Mitigram and Enigio Enter into a Strategic Partnership to Revolutionize International Trade Finance

Mitigram and Enigio have joined forces in an exciting partnership aimed at driving the digitalization of international trade finance. This collaboration is set to revolutionize the industry by offering a complete range of electronic commercial documents compliant with legislation accessible to all stakeholders. With the recent legal adoption of MLETR in the UK and other key jurisdictions, companies can now transition to fully digital, paperless trade flows, enabling faster and safer access to capital through seamless communication.

About Mitigram

Mitigram is a global leader in digital trade financing. Established in 2014, it has transformed the trade finance sector by offering real-time insights into risks, capacities, and pricing across over 100 markets. Mitigram’s innovative solutions have facilitated over $100 billion in financing flows, advancing the digitalization of trade finance processes and data. Backed by prominent Nordic institutional investors, Mitigram continues to drive the evolution of global trade finance.

About Enigio

Enigio is a technology company offering solutions to ensure consistency, integrity, traceability, and possession of digital information, making data available only to authorized parties while protecting it from manipulation. At the core of Enigio’s offerings is trace:original, a solution for freely transferable digital original documents, usable across various commercial documents required in international trade. trace:original offers banks, businesses, logistics providers, and others all the advantages of original paper documents but none of their shortcomings, without the need to join a specific ecosystem or closed platform.

 

“The collaboration with Enigio marks a significant milestone in our journey to digitize trade finance,” said Ted Scheiman, Chief Strategy Officer of Mitigram. “Enigio’s digital document technology, trace:original, aligns perfectly with our vision, establishing a new sustainable document standard for interoperability while offering excellent value to our clients and the trade finance industry.”

Amanda Evans, Chief Growth Officer at Enigio, expressed enthusiasm for the partnership, highlighting how their technology allows Mitigram’s clients to create freely transferable digital assets/documents. By integrating trace:original, Mitigram enhances its product offering, providing a seamless solution for businesses and banks to conduct end-to-end digital transactions with all involved parties.

Patrik Zekkar, CEO of Enigio, emphasized the synergy between Mitigram’s user-centric approach and Enigio’s trusted technological advancements, foreseeing a profound impact on the industry in this critical period of economic growth.

Navigating the Legal Landscape of Digitalization

This collaboration comes at a crucial moment, coinciding with the recent legal adoption of MLETR in the UK, with France and other nations poised to follow suit. This legal progression underscores the imperative of digital transformation in trade and underscores the commitment of the Mitigram-Enigio partnership to lead this transformation. By aligning with these legal advancements, Mitigram and Enigio are not only adapting to regulatory changes but also facilitating a smoother transition towards comprehensive digitalization within the industry.

Charting the Course Forward

The partnership between Mitigram and Enigio is dedicated to setting new standards in efficiency, security, and interoperability in international trade. Their commitment to widespread adoption and interoperability, as well as their collaboration with other ecosystem providers, signals a collective effort to modernize the industry. This alliance reflects the commitment of both entities to developing a digital trade finance ecosystem that is forward-looking and sustainable.

 

Our Trade Finance offer: Offer AML-CFT Trade Finance (1) (1)

 

Sources : https://www.tradefinanceglobal.com/posts/enigio-and-mitigram-partner-to-enhance-global-digital-trade/

https://www.mitigram.com/press-highlights/149-mitigram-partners-with-enigio-to-drive-digitalisation-of-global-trade-finance

https://enigio.com/post/mitigram-partners-with-enigio-to-drive-digitalisation-of-global-trade-finance/

13Mar2024

Our Correspondent Banking offer

Posted By: DEVLHON Consulting

THE CHALLENGES OF CORRESPONDENT BANKING

 

A few days ago, we highlighted our Trade Finance Offer by discussing these issues.

In this article, the aim is quite simply to do the same with our AML Correspondent Banking offering!

Correspondent Banking refers to a relationship established between two financial institutions, generally located in different countries, with the aim of facilitating cross-border transactions. The issues associated with Correspondent Banking are varied and include:

Risk management :

Correspondent banks must manage various types of risk, including credit risk, counterparty risk, liquidity risk and regulatory compliance risk. Anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations impose strict obligations on correspondent banks. The aim is to verify the identity of their customers and monitor suspicious transactions.

Cost and profitability:

Banks need to balance the costs of setting up and maintaining correspondent relationships against the revenue generated by these activities. Due to increasing complexity and regulatory requirements, costs can be high, which can affect the overall profitability of correspondent operations.

Access to the global financial system:

Financial institutions, particularly those located in smaller or emerging jurisdictions, often rely on correspondent relationships to access the global financial system. The loss of these relationships can result in limited access to international banking services, which can hinder international trade and economic development.

Regulatory pressures and compliance:

National and international regulators are imposing increasingly stringent regulatory compliance requirements, making the management of correspondent relationships more complex and costly. Correspondent banks must ensure that their practices comply with international standards while meeting the specific requirements of each jurisdiction.

Geopolitical risks:

Correspondent relationships may be influenced by geopolitical factors such as international sanctions, political conflicts and changes in international relations. Banks need to monitor these developments closely to assess the risks to their correspondent business.

In summary, the challenges of Correspondent Banking include risk management, costs and profitability, access to the global financial system, regulatory compliance and geopolitical risks. Financial institutions need to navigate this area carefully to maintain strong and lasting correspondent relationships.

 

Click here to download our offer in PDF format: AML Correspondent Banking

Discover our offer in video format: https://youtu.be/gK0NTnRehqU?si=MZtjkWE7FKQeJDCg

Our website: https://www.devlhon-consulting.com/fr/

11Mar2024

Allianz Trade: E-commerce credit insurance services strengthened

Posted By: DEVLHON Consulting

Allianz Trade, a leading credit insurer, is positioning itself to meet the growing needs of the B2B e-commerce market by enhancing its e-commerce credit insurance services. This initiative aims to provide real-time protection against non-payment risks for B2B marketplaces, BNPL suppliers and online merchants.

Allianz Trade pay : A New Suite of Solutions

Allianz Trade introduces Allianz Trade pay, a comprehensive range of solutions specifically designed for e-commerce players. The suite includes credit insurance, immediate financing and KYB (Know Your Business) procedures, merging existing tools with innovative new services.

Solutions offered by Allianz Trade pay

1. E-commerce Credit Insurance: Enables B2B online merchants to offer payment terms while protecting themselves against the risk of non-payment.
2. Instant Domestic Finance: Allianz Trade’s B2B BNPL partners provide immediate payment to e-merchants via Allianz Trade’s API, with insurance cover in the event of non-payment.
3. Instant Financing for Multinational Companies: A similar option to the domestic solution, but with a financial partner involved to facilitate real-time payments across different countries and currencies.

Innovative solutions

In addition to these established solutions, Allianz Trade pay also offers market innovations:

– Buyer Integration Service: Facilitates the KYB process by verifying buyer identities using Allianz Trade’s open banking technologies and extensive database.

– Identity Theft Insurance Service: Protects against financial loss due to identity theft by fraudulent entities.

– Simple CMS Plugin: Facilitates the integration of these solutions into B2B e-commerce platforms.

 

Vision and Commitment

François Burtin, Global Head of E-Commerce at Allianz Trade, underlines the company’s commitment to covering the entire B2B e-commerce value chain. Allianz Trade pay aims to meet the diverse needs of the ecosystem, offering simplicity, security, flexibility and competitiveness in the marketplace.

Anil Berry, Member of the Executive Committee in charge of Commercial Insurance, Distribution, E-Commerce and Marketing, expresses his enthusiasm about the prospects offered by Allianz Trade pay. He underlines the company’s determination to remain at the forefront of change in the B2B e-commerce industry by continuing to develop innovative services and functionalities.

 

In short, with Allianz Trade pay, Allianz Trade is strengthening its commitment to the B2B e-commerce market, offering solutions tailored to the evolving needs of businesses in an ever-changing digital world.

Source : https://www.tradefinanceglobal.com/posts/allianz-trade-introduces-new-b2b-e-commerce-payment-solution/

https://tribune-assurance.optionfinance.fr/depeches/d/2024-03-06-allianz-trade-lance-allianz-trade-pay.html:~:text=Allianz%20Trade%20pay%20proposes%20one,the%20risk%20of%20non%2Dpayment.

 

8Mar2024

Our Trade Finance offer

Posted By: DEVLHON Consulting

The challenges of trade finance

 

Trade Finance is an essential aspect of world trade. It encompasses a range of financial products and services designed to facilitate commercial transactions between companies located in different countries. We would like to introduce you to the key issues in this field.

Click here to download our Trade Finance offer: Offer AML-CFT Trade Finance (1) (1)

 

Risk reduction :

International trade involves a variety of risks, such as credit, currency and transport risks. Trade Finance helps reduce these risks by providing guarantees and insurance for commercial transactions.

Financing trade operations:

International trade transactions can require substantial funds to cover the costs of production, transport, and so on. Trade Finance offers financing solutions such as letters of credit, commercial loans and bank guarantees to facilitate these operations.

Facilitating international trade:

By providing adapted financing tools and mechanisms, trade finance facilitates cross-border trade by reducing financial and administrative obstacles.

Optimizing the cash cycle:

Trade Finance enables companies to manage cash efficiently by offering flexible financing options that match the cash flows associated with international trade transactions.

Improved access to credit :

For companies, particularly small and medium-sized enterprises (SMEs), access to credit can be difficult, especially when they are involved in international transactions. Trade Finance widens access to credit by using trade flows as collateral.

Regulatory compliance:

International trade transactions are subject to various regulations and standards, such as KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance rules. Trade Finance helps to ensure regulatory compliance by providing appropriate verification and documentation mechanisms.

Innovation and digitization:

The Trade Finance industry is evolving rapidly thanks to technological innovation and digitization. Technologies such as blockchain, AI and automation are transforming traditional Trade Finance processes, making them more efficient, transparent and secure.

In short, Trade finance plays a crucial role in facilitating international trade by providing financing solutions, reducing risk and improving the efficiency of cross-border trade transactions.

Click here to download our Trade Finance offer: Offer AML-CFT Trade Finance (1) (1)

 

Watch our Trade Finance video: https://youtu.be/BiUlDT2B7Vw?si=P1nBdUBAjDt0CWt2

 

Details of our offers on our dedicated website page: https://www.devlhon-consulting.com/fr/service/trade-finance-lcb-ft/

 

 

 

6Mar2024

The Impact of Artificial Intelligence in the Banking Sector

Posted By: DEVLHON Consulting

Several months ago, we discussed the potential revolutions that the use of artificial intelligence could bring to the banking and finance sectors more broadly. (article link: https://www.devlhon-consulting.com/fr/breaking-news-entretien-exclusif-avec-chatgpt/)

 

Today, let’s take stock together of the first concrete uses of AI in these sectors.

Enhanced Customer Experience:

AI analyzes vast amounts of data to offer personalized financial advice and product recommendations. Chatbots ensure efficient customer support 24 hours a day.

Operational Efficiency:

AI automates manual processes, reduces errors, and improves productivity. It helps make informed loan decisions and optimizes resource allocation through predictive analysis.

Detection and Prevention of Fraud:

AI algorithms detect suspicious activities in real-time, enhancing security with technologies such as behavioral biometrics and AI-assisted cybersecurity systems.

Compliance Monitoring:

AI tools automate compliance tasks such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, ensuring regulatory compliance.

Challenges:

Adoption challenges include data quality, regulatory compliance, system integration, and customer acceptance.

In summary, the future of AI in banking promises superior services, although ethical considerations such as data privacy remain crucial. Balancing innovation with responsibility is essential for sustainable progress.

 

Source: https://www.tradefinanceglobal.com/posts/ai-in-banking-what-will-it-actually-change/

4Mar2024

Digital Revolution in Global Commerce:

Posted By: DEVLHON Consulting

Introduction to Bills of Lading:

 

Bills of Lading play a crucial role in global trade, serving as confirmation of goods shipment from a carrier to a buyer, essentially acting as a “receipt” for the shipped items. These documents are essential for the legal transfer of goods upon payment or agreed payment terms.

 

Transition to Digitization:

 

Traditionally paper-based, Bills of Lading have now transitioned to electronic format through the collaboration between Lloyds Bank and WaveBL. This collaboration enables clients to exchange eBLs (electronic Bills of Lading) via the WaveBL network, covering 136 countries and including some of the largest global shipping companies. This transition offers significant advantages in terms of trade efficiency and sustainability.

Benefits of Digitization:

 

The digital system allows for swift transfer of eBLs within minutes, a considerable improvement over the days required for physical document exchanges. Additionally, it mitigates risks associated with paper documents, such as forgery and loss, while reducing environmental impact by eliminating paper usage and physical transfers.

 

Lloyds Bank’s Commitment to Digitization:

 

Lloyds Bank’s commitment to digitization is evident through its support of the FIT Alliance’s eBLs declaration and its vision for global conversion by 2030. This alliance, backed by major maritime and trade organizations, aims to promote and accelerate eBLs adoption.

 

Statements from Key Figures:

 

Rogier Van Lammeren of Lloyds Bank highlights the economic, efficiency, risk reduction, and environmental sustainability benefits of trade digitization. Ofer Ein Bar of WaveBL emphasizes the importance of digital solutions in meeting growing business demands and enhancing customer satisfaction.

 

Previous Advancements by Lloyds Bank in Digitization:

 

Lloyds Bank has achieved several milestones in trade digitization, including transactions under the Electronic Trade Documents Act (ETDA) and the ITFA Digital Negotiable Instrument Initiative. These initiatives underscore the bank’s ongoing commitment to innovation and modernization in international trade.

 

Source : https://www.tradefinanceglobal.com/posts/lloyds-bank-and-wavebl-partner-to-enhance-digital-trade-operations/

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