Introduction: Bangladesh today is the 41st largest economy in the world with a GDP of US$270 billion growing at 7.2% per annum. This makes it one of the fastest growing economies of the world. Merchandise Export is US$40 billion while Import is US$ 43 Billion and both are growing at a healthy rate as depicted by the GDP growth.
According to 2016 ICC Global Trade Finance Survey, global trade growth was below global GDP growth. Global growth saw 2.7 per cent growth in trade volume terms for 2015 which means volume of trade growth for the past 5 years has been under 3%. In monetary value of world merchandise exports declined by 14 per cent in 2015, down to USD 16 trillion from USD 19 trillion in 2014. WTO has recently downgraded its forecast for world trade growth in 2016 to 1.7 percent, down from its previous estimate of 2.8 percent in April
According to the Survey, 52% of the respondents reported increased trade finance activity in volume terms, though lower than 63% in last year. Despite market and operational challenges 89% of respondents felt that their bank’s ability to satisfy their customers’ trade finance needs had remained stable or their ability to satisfy customers had increased.
In terms of trade finance fees, approximately 65% of respondents cited that there was no increase in trade finance fees during 2015. However, 31% of respondents expect to see trade finance fees increase during 2016 which is due predominantly to increased costs in terms of compliance and consequently, operational risk management.
The troublesome trends with claims under guarantees, court injunctions barring payment of bank independent undertakings, and allegations of fraud, continue to persist; 21% of respondents reported an increase in claims under bank guarantees and standby letters of credit, 15% of banks reported an increase of court injunctions and 13% of respondents reported an increase in the troublesome issue of allegations of fraud.
Objective: The Workshop has been designed for participants to understand and learn about updated various implications of L/C considering the increase in international trade and finance of Bangladesh to avoid risks in cross-border transactions. It will also help in understanding the new provisions and how the changes impact users with the confidence and legal certainty to trade in unfamiliar markets and save both time and money. The workshop will be case study driven to achieve maximum practical benefit in everyday Documentary Credit Operations.
Participants: The workshop will be of significant benefit to trade finance officials of Bangladesh Banks, bankers, exporters, importers, investment project managers, corporate lawyers, freight forwarders and other international trade professionals to understand and take guard against the risks involved and how to resolve issues. Certified Documentary Credit Specialists (CDCS), Certified Specialist in Demand Guarantees (CSDG) participants will receive 8 (eight) Professional Development Unit (PDUs) for re-certification by attending this workshop.