Deep markets in trade finance and trade credit insurance are crucial to fully unlocking the trade potential of any jurisdiction. As such, a strong understanding of the market for these financial instruments is critical to understanding how easily exporters and importers are able to finance their cross-border transactions.
The European Commission engaged Momentus (formerly IFCL) to study and report on the short-term trade finance and credit insurance markets in the European Union (EU). The study analyzes the functioning of the short-term trade finance and credit insurance markets in the EU, how well the existing instruments meet the legitimate needs and aspirations of exporters in order for them to be internationally competitive, and how effectively they address the needs of those who provide the financing and insurance for the exports. The study also examines the appropriate role for the state to play in the business, considering the backdrop of the Great Financial Crisis and beyond.
The analysis was derived from a variety of sources, relevant desk research, and on our practical experience with the market both within the EU and worldwide. It was also informed by detailed stakeholder consultations.