Business

Thursday July 26, 2012

Banks, ITFC discuss funds for emerging market traders

By DAVID TAN
davidtan@thestar.com.my


GEORGE TOWN: Three local banks are exploring ways to cooperate with International Islamic Trade Finance (ITFC) to provide trade financial solutions for Malaysian entrepreneurs doing business in emerging markets, including in Organisation of the Islamic Conference (OIC) and non-OIC countries.

Tujuh Keajaiban Middle East Free Zone Enterprise (TK) chief executive officer Krishnan Ramamurthi said the solutions being worked out were for entrepreneurs who wanted to increase their business turnover overseas.

TK is the appointed consultant for ITFC

“The banks are now in preliminary stage of discussion to tap the variety of trade financial solutions offered by ITFC,” he said.

The matter was one of the topics discussed at a recent trade delegation meeting with the banks held on July 16 to J18.

Institutuions such as Pelaburan Mara Bhd and Malaysian Investment Development Authority also took part in the discussion.

“The solutions that are being worked out focus on commodity trade finance, market access, country risk, logistics support, and counter party risk.

“We can expect to see some tangible results in the next quarter,” he said.

Some five small and medium companies involved in commodity trading had expressed interest in taking up the current solutions arranged by TK.

“Although the world is undergoing an economic crisis, there are still business opportunities in the emerging markets. Especially when there is a credit crunch, TK can come in to provide timely assistance tapping on the financial solutions of ITFC,” Krishnan said.

“TK provides unique services such as understanding, interpreting and providing solutions to risks identified for the entrepreneur, so that a proper risk-mitigated approach can be established both for lenders and well as borrowers.

“We also provide advisory services for foreign currency exposure mitigation, as all the borrowings are in US dollars and euro.”

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