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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/

26Dec2023

(Français) Le secteur bancaire mondial a-t-il vraiment entamé sa transition verte ?

Posted By: DEVLHON Consulting

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Introduction :

Dans un monde en mutation, marqué par l’urgence climatique, le secteur bancaire mondial se trouve à un carrefour crucial. Alors que les gouvernements s’efforcent d’atteindre les objectifs de zéro émission, nous explorons comment les banques s’adaptent à ce défi environnemental.

 

Un Changement d’Ère Nécessaire

Avec l’impératif d’une économie faible en carbone, l’industrie bancaire fait face à une transformation historique. Les pressions gouvernementales et sociétales pour une action immédiate et significative sont en hausse, marquant cette époque comme une décennie critique pour l’action environnementale. En effet, les émissions mondiales doivent être réduites de près de 43% d’ici à 2030 pour limiter la hausse de la température de la planète à 2°C. Malgré tout, il est possible de maintenir le réchauffement à 1,5°C si l’on réduit rapidement et fortement les émissions dans tous les secteurs de l’économie mondiale.

 

Rôle Clé des Banques dans la Lutte Climatique :

Les banques jouent un rôle pivot dans ce virage vert, mais comment s’engagent-elles concrètement ? Les banques, au cœur des flux financiers mondiaux, sont devenues des acteurs incontournables dans la lutte contre le changement climatique. Elles se positionnent désormais comme des leviers de changement, orientant les investissements vers des projets écologiques et durables. Mahmoud Mohieldin, figure de proue de l’ONU pour l’action climatique, met en lumière le rôle crucial des banques dans cette transition. Il souligne que les institutions financières sont non seulement des catalyseurs de changement, mais également des partenaires essentiels dans la mise en œuvre de stratégies climatiques efficaces. Leur engagement se traduit par un soutien accru aux initiatives vertes, l’adoption de normes de reporting environnemental rigoureuses et une collaboration étroite avec les acteurs du développement durable.

Le Secteur Bancaire Face au Défi du Climat

Dans cette ère de responsabilité environnementale, les banques sont confrontées à un défi majeur : intégrer la durabilité au cœur de leurs opérations. Mohammed Azem Hamad de la Qatar Islamic International Bank illustre cette démarche en décrivant comment le risque climatique est devenu une priorité absolue pour les institutions financières. Les banques ne se contentent plus de financer des projets verts ; elles réévaluent leurs pratiques commerciales pour y intégrer des critères environnementaux, sociaux et de gouvernance (ESG). Cette transformation nécessite une approche holistique, allant de la gestion des risques à l’innovation en matière de produits financiers durables. En adoptant ces nouvelles pratiques, les banques espèrent non seulement minimiser leur empreinte écologique, mais aussi encourager une économie plus verte et responsable.

Conclusion

Ce panorama montre que le secteur bancaire est en pleine évolution, cherchant à aligner ses activités avec les impératifs écologiques actuels, un défi qui redéfinit son rôle et son image dans la société moderne.

 

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20Dec2023

(Français) Le secteur bancaire, une chance pour la blockchain et les cryptomonnaies

Posted By: DEVLHON Consulting

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Changement de Cap dans le Monde des Cryptomonnaies : Entre Crises et Évolution de la Blockchain

Le domaine des cryptomonnaies a récemment connu un bouleversement majeur. À l’instar de l’intelligence artificielle actuelle, la sphère des cryptomonnaies a longtemps été perçue comme un vecteur puissant d’innovation et de création de valeur. Cependant, elle a subi de sérieux revers avec une série de défaillances et de faillites marquantes parmi ses acteurs phares ces derniers mois.

L’avenir des cryptomonnaies et leurs applications demeure extrêmement incertain, soumis notamment à l’évolution des réglementations en discussion ou en cours d’implémentation par les autorités de régulation. Néanmoins, la technologie fondamentale de ces actifs, la blockchain, ne semble pas en voie de disparition. Au contraire, elle est plutôt destinée à évoluer, tout comme les géants de la tech tels que les Gafam.

 

 

Les Cryptomonnaies en Mutation : Entre Défis et Évolution de la Blockchain

Récemment, le secteur des cryptomonnaies a traversé une période de turbulences significatives. Semblable à l’actuel essor de l’intelligence artificielle, le monde des cryptomonnaies était autrefois admiré comme un puissant moteur d’innovation et de génération de richesse.

Toutefois, cette industrie a été frappée par une vague de problèmes majeurs, notamment des défaillances et des faillites remarquables de ses principales entreprises ces derniers temps. L’avenir des cryptomonnaies et de leur utilisation reste incertain, largement influencé par les nouvelles réglementations en débat ou en cours de déploiement par les organismes régulateurs.

Cela dit, la blockchain, technologie essentielle de ces actifs numériques, ne semble pas destinée à disparaître. Au contraire, elle est en voie d’évolution, à l’instar des géants technologiques tels que les entreprises Gafam.


La Réaction des Banques Centrales

L’Euro numérique semble prometteur pour améliorer la vitesse et réduire les coûts des transactions financières, notamment celles transfrontalières. Il vise à offrir des options de paiement instantané disponibles à tout moment et à fournir des alternatives au paiement en espèces, accessibles à tous, y compris les personnes en situation de précarité.

Actuellement, il existe 11 monnaies numériques de banques centrales (CBDC) opérationnelles et 17 en phase de test, avec une soixantaine d’autres en développement ou recherche. En Europe, un premier rapport sur la mise en place d’un Euro numérique a été publié par la BCE en octobre 2020, et une étude formelle a commencé en octobre 2021 pour définir ses fonctionnalités et applications prioritaires.

Les résultats de cette étude, publiés le 18 octobre 2023, indiquent que l’Euro numérique pourrait être initialement utilisé pour les transactions entre particuliers, dans les magasins physiques, en ligne, et avec les administrations publiques de la zone Euro. Il serait accessible via les applications bancaires habituelles et une application dédiée liée à l’Eurosystème.

La BCE a souligné l’importance de garantir que le développement de l’Euro numérique ne perturbe pas la politique monétaire et respecte les meilleures pratiques en matière de contrôle, comme dans les domaines de la connaissance du client (KYC) ou de la lutte contre le blanchiment d’argent (LAB-FT).

L’impact sur le secteur bancaire est notable. L’adoption de la blockchain pour la tokenisation des titres pourrait améliorer la rapidité, la fiabilité et la sécurité des transactions, tout en simplifiant l’interconnexion des marchés mondiaux.

Ces technologies pourraient accroître l’efficacité des marchés, améliorer la rentabilité des intermédiaires financiers et ouvrir la voie à de nouveaux modèles d’affaires et opportunités d’investissement, stimulant ainsi la croissance macroéconomique.

Tant pour les CBDC que pour la tokenisation des actifs financiers, les répercussions pourraient être considérables pour les banques commerciales, affectant leurs rôles, organisations et infrastructures informatiques. Comme l’intelligence artificielle, la blockchain pourrait inciter les banques commerciales à sortir de leur zone de confort et générer de nombreuses opportunités de développement et de différenciation.[/vc_column_text][/vc_column][/vc_row]

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