Can structured LCs help bridge the trade finance gap in the East African region?

Structured or ‘synthetic’ Letters of Credit continue to play a crucial role in channelling USD liquidity into East Africa’s local banking sector, however the structure’s status as a bona fide trade finance instrument can prove contentious amongst the market’s purists.
This session from GTR East Africa 2021 Virtual sees Albert Rweyemamu (Senior Political & Credit Risk Underwriter, African Trade Insurance Agency (ATI)), George Wilson (member of the Africa Regional Committee, ITFA), Sheleena Govind (Transactor, Debt & Trade Solutions, Financial Institutions Group, Rand Merchant Bank (RMB)), Simon Cook (Partner, Sullivan & Worcester UK), and Afolabi Obisesan (Manager, Specialized Finance, Guarantees & Specialized Finance Unit, Afreximbank) shed light on the operational aspects of a synthetic LC and the motivations of various deal participants, highlight the advantages the structure affords to East Africa’s trade sector, and seek to address questions around the legal treatment of synthetic LCs in the event of default.