Finance services

IFSCA publishes framework for establishing international trade finance services platform

The International Financial Services Centers Authority (IFSCA) on Monday released a framework for the establishment and operation of the International Trade Finance Services Platform (ITFS). The platform will provide trade finance services in International Financial Services Centers (IFSCs). The full text of the framework can be found on the IFSCA website.

The International Financial Services Centers Authority (IFSCA) was established under the IFSCA Act of 2019 to develop and regulate financial products, financial services and financial institutions in International Financial Services Centers (IFSCs).

The framework published by the IFSCA will allow exporters and importers to benefit from various types of trade finance facilities on competitive terms. They could use these facilities for their international business transactions through a dedicated electronic platform, namely the ITFS.

This will help traders convert trade receivables into cash and secure short-term funding, according to a government statement.

This framework will also provide participants with the opportunity to benefit from trade finance facilities for transactions on the ITFS platform. These facilities include: commercial export invoice financing, reverse trade financing, letter of credit invoice discounting, supply chain financing for exporters, credit to export (Packaging credit), credit insurance / guarantee, factoring and any other qualifying product.

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