Covid-19 recovery will need US$5tn in trade credit capacity

(Global Trade Review, London, 28 May 2020) The International Chamber of Commerce (ICC) has warned that as much as US$2 to 5 trillion of trade credit will be needed to return trade volumes back to 2019 levels in the wake of the Covid-19 crisis in order to enable volumes and demand return to the global economy. The ICC has underlined the need to void pre-existing legal requirements for key trade documents to be presented in hard-copy paper format in order to get trade finance to where it is most needed. Regulatory treatment of trade finance is also in the ICC’s sights, with the recommendation that risk calculations be lowered despite the expected drop in trade volumes between 13% and 32% and an increase in defaults.