Original scientific paper
Autor: Prof. dr Radovan Kovačević
JEL: F18, F32, F44, G01, G22
Summary: Trade finance is conducted by means of trade and bank loans, with bank loans being of various types. Trade loans are mostly characterized by short-term crediting of export in the time intervals from 30 to 90 days. Bank loans are formal loans extended by a financial institution with a view to facilitating international trade. According to some estimates, about 90% of global trade is conducted with the support of one or more instruments of trade finance. Together, trade and bank loans enable the smooth functioning of international trade. This paper examines the connection between trade finance and global export. It analyzes the relation between loans insured by public and private export loans insurers and export, as well as the role of crediting export at the corporate level. Towards the end, the paper underlines the importance of finance for the modern flows of global trade.