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Trade Customer Reaction to RFR Transition – Exclusive Analysis

Trade Customer Reaction to RFR Transition – Exclusive Analysis

(9 May 2022 – Australia) What has been the most adverse impact on trade finance customer’s facilities resulting from risk free reference rate (RFR) changes and the LIBOR transition?

East & Partners latest Australian Trade Finance program analysis reveals valuable “voice of the customer” insights based on direct interviews with 1,888 CFOs and corporate treasurers of actively importing and exporting enterprises across Australia.

Unsurprisingly the majority of small businesses with vanilla import-only trade finance needs who are predominantly using documentary bills for collection (DCs) and letters of credit (LCs) are broadly unaware of RFR changes but did not go as far as to say RFR changes were inapplicable to their operations entirely or would have no impact in the longer term.

Contact East & Partners to discover how middle market and large corporate enterprises gauged the response of their trade finance provider to what has been a tumultuous administrative and regulatory period split by the following factors

  • Switching provider due to poor preparation and communication by primary trade finance provider
  • Rushing administrative requirements into 31 December 2021
  • Misunderstanding borrowing cost changes resulting from adjustments
  • Compounded COVID related and supply chain disruption challenges
  • Not yet impacted until USD short term rates switch 30 June 2023

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