EU abandons Trade Finance capital requirements overhaul
The ICC and various news media have confirmed that the EU has dropped plans to hike capital requirements for some key trade finance instruments.
The initial EU Commission proposal was to increase the Credit Conversion Factor (CCF) for guarantees from 20 % to 50 % as well as uncertain wording around effective maturity for short term trade finance.
Accordingly, the credit conversion factor (CCF) will remain at the current level of 20% for guarantees.
The final text is not available yet, hence there may be other relevant changes and clarifications.