Launch event explains new ICC Rules for Forfaiting
The ICC Banking Commission, ICC UK and the International Forfaiting Association (IFA) today officially launched the ICC Uniform Rules for Forfaiting (also known as URF 800) at SNR Denton Headquarters in London. Produced in partnership with the International Forfaiting Association (IFA), the URF is the first set of global rules for the primary and secondary forfaiting markets.
Forfaiting, a form of international supply
chain financing, provides a vital finance component for a number of trade
instruments, including letters of credit, bills of exchange, promissory notes
and invoice purchases. The new URF provide the contractual framework to
transform these instruments into viable banking investments.
The heavily-anticipated event brought
together key players involved in international trade, banks and specialized
finance houses. Speakers gave an outline of the rules, what they mean and how
they can be used to expand business. They included IFA Chairman Paolo Provera,
Executive Secretary of the ICC Banking Commission Thierry Senechal, IFA Deputy
Chairman Sean Edwards and SNR Denton Partner Geoff Wynne.
ICC’s new Uniform Rules for Forfaiting
(URF) came into effect on 1 January 2013 after more than three years of
intensive drafting. The rules, which were approved at the last ICC Banking
Commission meeting in Mexico City in November 2012, will govern a market
estimated at more than US$300 billion a year.
The URF launch highlighted that it is more essential
than ever for exporters and other companies engaged in international trade to
monetize their receivables. These receivables may take different forms;
promissory notes, bills of exchange and letters of credit in a variety of
jurisdictions. The forfaiting industry can accommodate and provide finance for
all these types of instruments and even enable exporters to provide attractive
sales terms for their buyers. The URF are clear and set out procedures for both
corporate and financial institutions engaged in forfaiting.
Encompassing the entire field of trade
finance, entry into this new field signals the expanding role of the ICC
Banking Commission. With more than 600 members in over 100 countries, the commission
has gained a global reputation as the authoritative voice in the field of trade
Learn more about the ICC Banking Commission.
Get your copy of the new Uniform Rules for Forfaiting.
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