EXPORT FINANCE FOR SMALL AND MEDIUM EXPORTERS
Date : 21 Sep 2001
Location : New Delhi
EXIM Bank of India in association with West LB of Germany and the International Finance Corporation (IFC)/Washington is now promoting a joint venture in India called "Global Trade Finance Pvt Ltd" with the objective of promoting market-driven export financing solutions for small and medium sized Indian exporters ( SMEs ) operating in an increasingly competitive world trade environment. Shri Rajiv Pratap Rudy, Minister of State for Commerce and Industry, formally launched the new company in Mumbai today. Forfaiting and Factoring services under one roof will be on offer to such SMEs in India for the first time. The increasing trend of globalised markets and falling trade barriers leading to multiplication of business opportunities for producers and traders also gives rise to administrative and risk management burdens for those involved in cross border transactions. The need for risk mitigation is one of the prime objectives when completing an export transaction and is currently being felt more keenly than ever before. Export factoring and forfaiting will address this need effectively and efficiently in today's environment of simpler and quicker trade mechanisms. Factoring provides credit assessment, credit protection, financing and collection services to exporters covering their regular sales on open account terms i.e., without any letter of credit. As the demand for open account trading expands globally, Indian exporters will need to offer similar terms to importers in order to remain competitive. Alternatively, Forfaiting will help exporters to offer longer term financing to importers of capital goods from India.
GTF is headquartered in Mumbai with one marketing office currently in New Delhi. EXIM Bank is the apex financial institution, fully owned by Government of India, set up in 1982 for financing , promoting and facilitating India's international trade.