Current Issues

We serve as the industry’s voice before multilateral agencies, export credit agencies, finance ministries, central banks and legislative bodies. We collaborate around the world with other industry groups and trade associations. As a member of BAFT, we represent you in continually striving to:

  • develop international standards such as the “Master Participation Agreement” for trade risk
  • support the “national treatment” of financial firms in the markets where they do business
  • promote the harmonization of financial services regulation and supervision between countries
  • coordinate with private and public sector stakeholders to ensure that governments, multilateral agencies, and leading policymakers around the globe have substantive feedback and reliable data on market dislocations and industry trends
  • Advocate for the positive consideration of trade finance and transaction banking under the Basel capital and liquidity framework
  • Use common Trade Finance Definitions to standardize industry/regulatory terminology and facilitate prioritization of trade risk in sovereign events
  • Ensure the continuation of benefits afforded companies via ECA financing

Policy News

Oil and Gas Best Practices Guidance Document

by User Not Found | Sep 11, 2015

BAFT has published The Oil and Gas Industry: A Practical Guide to Independent Undertakings (the “Guide”) developed by its Oil & Commodity LC Working Group. This educational document reviews common terms found in the LCs and Demand Guarantees (collectively “Undertakings”) supporting this industry’s sales.

BAFT identified a need to harmonize and qualify specific terms and document types in these Undertakings to better serve the industry needs. The Guide addresses such topics as fluctuating pricing, reduction and due date clauses, etc. It assists in reviewing documents not specifically mentioned in the various rule sets (UCP, ISP and URDG) governing undertakings, such as pipeline certificates, book transfers, meter tickets, letters of indemnity (“LOIs), etc.

Guidance Document available to BAFT members here