Details

Autor(en) / Beteiligte

• Badinger, Harald
• Url, Thomas

Titel

USERS AND EFFECTS OF AUSTRIAN EXPORT CREDIT GUARANTEES

Ist Teil von

• CESifo forum, 2014-10, Vol.15 (3), p.39

Ort / Verlag

München: Institut für Wirtschaftsforschung (Ifo)

Erscheinungsjahr

2014

Quelle

Business Source Ultimate【Trial: -2024/12/31】【Remote access available】

Beschreibungen/Notizen

• Export and import transactions are usually based on trade credit rather than cash payments. The exporting firm may offer open account finance and thus extend credit directly to the importer. In this case the exporter bears the credit risk and the burden of providing liquidity to the counterparty. In 2008, this form of trade finance covered between 38% and 45% of global merchandise trade. Alternatively, firms may use bank-intermediated trade finance. A common instrument is the letter of credit, which is equivalent to a guarantee by a foreign private bank to pay the amount invoiced after delivery of the good. In 2008, bank-intermediated trade finance covered about 35% to 40% of global merchandise trade. Exporters are able to make advance payments for about one-fifth of international trade.