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THETRAILBLAZER

OFFICIAL NEWSLETTER OF EURO EXIM BANK

H1 | 2021 | ISSUE 15

MESSAGEFROM

THE CHAIRMAN

Amid COVID-19 repercussions, we are ready to assist emergingmarkets where current lack of confidence, liquidity, fiatcurrency, and infrastructure has impaired international trade

We anticipate an exceptional year ahead enabling us to meet market challenges and continue operations as a reliable forcein trade finance, thanks to our creative outlook, practices,systems, partnerships and staff.

We will continue our charitable activities, instilling corporate social responsibility, treating people with kindness and respect,and assisting those who cannot help themselves.

Building the business, already with over 250 agents andpartners in 29 countries, our ambition is to create the largest‘GO TO’ global trade finance sales force, and our services inmajor financial centres.

We hope everybody remains safe and healthy, attending to loved ones and step positively towards a new normal.

KAUSHIK PUNJANI

WHAT'S IN THIS ISSUE:

FROM HUMBLE BEGINNINGS TO GLOBAL EXPOSURE | 02

MOVING FORWARD | 03

A TOKEN OF APPRECIATION | 04

A NEW ERA OF INTERNATIONALPAYMENTS WITH EXIM WAVE | 05

RWA LETTERS | 06

PERFORMANCE BONDS IN CONSTRUCTION | 07

LETTERS OF CREDIT AND THEIRIMPORTANCE FOR SME’S | 08

THE FUTURE OFCRYPTOCURRENCIES | 09

GLIMPSE OF BLOCKCHAIN SOLUTIONIN FINANCIAL SERVICES | 10

NEED TO RETHINK THEGLOBAL TRADE STRUCTURE? | 12

OUR CORPORATE SOCIAL RESPONSIBILITY(CSR) COMMITMENT | 13

AWARDS | 14

OUR ARTICLE CONTRIBUTORS | 15

FROM HUMBLE BEGINNINGS TO GLOBAL EXPOSURE

Born out of a Small Payments Institution inthe UK in 2015, Euro Exim Bank made aconscious decision to change itsspecialization to specifically serve SMEs intheir quest for the trusted instruments tofacilitate global trade.

We also realized that we needed ajurisdiction with a potent regulator thatwas politically and geographically close tokey markets. It led us to St. Lucia in theCaribbean, in 2017, we established ournew Headquarters.

We now operate under the supervision,authorization, and regulation of theFinancial Services Regulatory Authority ofSt. Lucia (FSRA), with a Class A bankinglicense.

Today, including our Representative officein London, consultants, agents, andpartners worldwide, our collective team isover 250 people.

Over the past three years, proposed tradefinance instruments' value requested toEuro Exim Bank has been over 3 trillionUSD.

We are establishing more RepresentativeOffices in Singapore, India, Dubai andlooking at other locations such as Africa,where emerging markets are creatingstrong supply chains and business flow.

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MOVING FORWARD...We have become all too aware of the effects ofCOVID-19 with continued clouds of recession,unprecedented economic disruption, excessive levelsof debt and threats to basic normality of private andpublic life, employment and wealth creation.

Despite the gloom, trade is essential to everyeconomy and is starting to improve, even if volumestemporarily fell through 2020. This reduction wasnot exactly a surprise, principally due to longstanding trade tensions between the US and Chinaaffecting general economic slowdown.

Euro Exim Bank is actively looking at refining oursales processes, enhancing our marketing campaigns,deigned to meet the continuing demand from globalcompanies impacted by the pandemic.

Moving ahead, our plans include even more salesteam growth, more country coverage, technicalenhancements to speed up instrument issuanceprocesses, and accessing more clients inopportunistic emerging markets.

The intention is to break down the current tradebarriers for clients who are left without cost-effective access to fiat currency, with no access toloans and instrument issuance services.

As risk profiles and the pandemic are causingtraditional banks pull out of trade services and evenleave the local market, we are well positioned andready to work with smaller currently disadvantagedcompanies and supply chains, finding trade initiationsolutions enabling them to economically compete inthe wider international arena.

"To protectourselves andour clients, wehave investedin commercialsystems,training andinternalworkflowenhancementsto ensure weuse allreasonableefforts tocollect theright trusteddata". - GrahamBright JPHead ofCompliance &Operations atEuro EximBank

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"Talent wins games, butteamwork and intelligence

wins championships". - Michael Jordan

Reliability is hard to come by.

We are fortunate to be resourced with ateam of the best experts from Europe, Africa, Asia, Middle East, Australasia, and South America.

Bringing in a wealth of competencies fromleading global conglomerates, our teamspecialises in international banking, tradefinance and SWIFT knowledge andcomplex trade finance instruments.

They have extensive training on duediligence, AML, PEP and sanction andsecurity checks, making us unique in ourspecialist field.

We successfully navigate multiple mediachannels with our skilled marketingprofessionals with thought leadershiparticle content, exhibitions, conferences,TV and digital magazine representation,blogs, vlogs and email campaigns.

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A TOKEN OF APPRECIATION

THEMANAGEMENTOF EURO EXIMBANK WOULDLIKE TO THANKTHE TEAM FORTHEIR HARDWORK,DEDICATION,INNOVATIVEAND CREATIVECONTRIBUTIONSTHAT ESTABLISHOUR SERVICESDURING THESECHALLENGINGTIMES.

A NEW ERA OFINTERNATIONAL PAYMENTSWITH EXIM WAVEExim Wave product's inception is based onthe nature of international trade business,involving SME's and corporates in over100 countries, many jurisdictions, multiplecurrencies and payment mechanisms.

We arranged an open and hassle-freepayment processing, accessible via theweb, online and mobile, supporting e-commerce websites, point of sales andpop-up stores, with various paymentmethods such as debit and credit cards,bank accounts, transfers, mobile money,M-Pesa, Visa QR codes etc.

Exim Wave supports more than 150currencies functioning globally, allowingclients to avoid high conversion fees andreceive funds in local currency, such asNaira, US Dollar, Euro, British Pound andmany more, available 24/7 acomprehensive single point dashboard andno integration requirements.

It enables clients to manage single andmultiple payment transactions, with fastsetup time, ease and functionality,providing customers with the best possiblecheckout experience.

Our global reach, especially in Africa andAsia, makes our card services highlydesirable and appropriate for smallbusinesses and companies moving todigital operating environments.

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RWA LETTERS

That the asset(s) to be used for payment or inexchange for payment is good, clear and withoutany criminal origin.That the said asset(s) do not have any externalcharges on them; i.e., they have not beenmortgaged or otherwise promised to another.That the said assets can be confirmed via SWIFTMT799 – MT760

In international trade transactions, especially largeones, the transacting parties will often not knoweach other well. To be sure of each other and theability of one another to perform as intended, it ispossible for a trusted 3rd party (a bank or financialinstitution) to issue a document to show that a partyis able to perform.

This document is referred to as an RWA, which isshort for “Ready, Willing and Able Letter”. Itdeclares, with proof, that the relevant person orentity is not only financially capable of entering intothe proposed transaction but is also legally capableof doing so, while also having the necessaryresources at hand, where applicable.

An RWA is more than just a simple proof of fundsletter, it is a declaration, backed up by evidence, thatthe relevant party is trustworthy and capable ofentering into the said transaction. However, it is nota commitment to pay, nor does it act as a mechanismof payment, govern the transaction in any way.

An RWA will typically include ratification from thebank and confirm the following:

RWAs at Euro Exim BankEuro Exim Bank offers RWAs that are acceptedworldwide. To apply, please speak with one of ourinternational payments specialists and we will behappy to assist you.

"Our roleremains toassistcompanies ofall tiers toreengagewith cross-border supplychains, newdemand andto assistbusinesses tocontribute totrade". - GrahamBright JPHead ofCompliance &Operations atEuro EximBank

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PERFORMANCE BONDS IN CONSTRUCTIONA Performance Bond, also known as aPerformance Security, is a guarantee givenby a bank or a financial institution toreduce the risk involved in majorconstruction, infrastructure, and othersimilar projects. It is one of many types ofbonds used in the construction industrywhere protecting a client of risks of acontractor breaking contractualobligations. It can help mitigate these riskand relieve the construction project ofliability if a contractor fails to deliver.

The owner(s) behind the constructionproject will sign a performance bond withone or more of the contractors involved inthe project, particularly the primecontractor. The bond contains detailedterms and conditions concerning thecontractor’s obligations and deliverytimelines etc. If a contractor fails todeliver, or worse if the prime contractorgoes bankrupt before completing theproject, the company behind the projectclaims the performance bond. The bank orsurety company will then be required tocompensate the owners and/or engagethe services of an alternate contractor tocomplete and deliver the work accordingto the performance bond.

Procedures may vary from jurisdiction tojurisdiction, but it is hard to go wrongwhen you choose a reputable internationalbank capable of acting as a surety.

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LETTERS OF CREDIT AND THEIRIMPORTANTACE FOR SMESA Commercial Letter of Credit (LC) provides aregulated, enforceable and guaranteed mechanism toensure payment for delivered goods.

An LC, through the use of a bank as trusted a 3rdparty intermediary, guarantees payment for goodssupplied and works to ensure that the seller cannotdirectly obtain the payment without fulfilling thebuyer's requirements.

Guarantee of Payment – For small export businesses,a single delayed or lost payment can be irreversiblydamaging. Using an LC means that this risk iscompletely avoided. The converse is true for smallimport businesses as well; a single failure of a sellerto deliver on a large shipment can be devastating.

Access to Credit/Improved Cash Flow – An LC istypically a negotiable instrument, thus allowing theexporter to use it as collateral against which toborrow funds for short term needs to fulfil theshipment. As a result, it provides for much-improvedcash flows for the exporter. It prevents them fromobtaining long term debt to satisfy working capitalrequirements, thus aiding them to maintain ahealthier financial position. For importers, too, basedon their arrangements with their bank, there issignificant room for freedom of movement aboutcash flow and working capital when using an LC.

Choosing the Right Partner - When you decide toenter into an international trade transactiongoverned by an LC, it is necessary to choose theright partner. In this digital age, you should look for aprovider that has embraced the latest digitaltechnology.

"Going fromstrength tostrengthfacilitatingworld trade,issuingfinancialinstruments,we are a keyelement inthe globalsupply chaincovering thefinancial lifecycle of goodsas theytraverse theSilk Road". - KaushikPunjaniChairman ofEuro EximBank

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"It is better to act too quicklythan it is to wait too long".

- Jack Welch

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THE FUTURE OFCRYPTOCURRENCIES BY GRAHAM BRIGHT From their inception in the early 2010s, until theirmeteoric rise to fame in 2017 on the back ofBitcoin’s astronomical bull market, digital (crypto)currencies were relatively obscure and only forspeculators.

Cryptocurrencies such as Bitcoin have foreshadoweda potential digital future for money, though they existoutside the traditional global financial system andaren’t legal tender like cash issued by governments.

Love them or loathe them, cryptocurrencies, coinsand tokens, valued in billions of US Dollars, will playan increasing role in complementing and competingwith monetary systems globally. Designed to workautonomously and independently of central banks,regulators and governments, they provide ananonymous, secure, low cost, globally accessible, aborderless mechanism for payment, by riskless DLTtechnology.

We can expect to see increased uptake of crypto ininternational trade, with the use of barter tokens,promoting financial inclusion with lower points ofentry and easier payment exchange, especially incountries with inflation and unstable bankingsystems.

While the number of coin offerings, price, value andfaith in them will rise and wain, governments andbanks will embrace controlled regulated digitalassets, the biggest impact on the finance industryand economies as a whole will be through the activetechnological advancement in global use of what onemay classify as a by-product, namely blockchain.

Blockchain is often referred to as arevolutionary wave that would eliminate themiddleman. This can be beneficial (unlessyou're a middleman) since it reducesexpense and complexity.

Blockchain databases and records are arevolutionary and evolving technology trendthat can have a major effect on supplychain, banking, and other transactionnetworks, creating new avenues forinnovation while lowering costs and risk.

Inter-organizational collaboration can bemade possible through blockchaintechnology. Companies like Walmart andIBM are now using this technology to map,trace, locate, and verify data through theirend-to-end supply chains.

Blockchain-based solutions can be used toreduce the costs of clearing and settlementprocesses, speed up payments, andtransform trade finance. They can provideself-contained audit logs that require nosetup, making compliance simple. Anti-money laundering and know-your-customerfeatures are also built into the networks.

It is important to remember that scalingBlockchain-based solutions is a long-termgoal that needs addressing cultural, marketand technological issues.

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GLIMPSE OF BLOCKCHAINSOLUTION IN FINANCIALSERVICESBY ADHITHYAN SUNDAR

“If you do what you’vealways done, you’ll get

what you’ve always gotten.”- Tony Robbins

RENAISSANCE OF BARTERING

The global pandemic made “won’t-ever-happen”things happen. One of them is the resurgence ofbartering as a system of exchange amongst smalland, sometimes, somewhat larger communities.Bartering is a conventional form of negotiation, andCOVID-19 may have increased at least tentatively.

Bartering is the oldest form of commerce, involvingexchanging goods and/or services between peoplewithout money. It is the primal form of trading,potentially practised since prehistoric times. Goodsand or services are exchanged based on theirperceived values by the two or more parties.

Bartering’s importance in early communities andperiods of catastrophe recognises it as a potentiallyrudimentary form of negotiation rather than money.

A Facebook group called the Barter United Kingdomallows people in the UK to make posts regardingpotential trades. It has essentially become a venuefor buyers and sellers to meet, of course, with nomoney involved, just the goods and or services.

In August 2020, a BBC backed publication featuredthe story of a London-based nurse who, afterrecovering from covid, found herself unable to cookand in dire straits financially. She then decided to getrid of some items around her house to raise moneybut then stumbled upon the Barter United Kingdom,which allowed her to exchange unwanted items forfood and other necessities.

Bartering proved to be a highly inefficient system,which is why monetary mediums came into use.Despite this, in the hard times of the pandemic,Bartering has once again made an appearance.

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RETHINKING THE GLOBALTRADE STRUCTUREInternational trade has suffered inunprecedented ways as a result of theglobal pandemic. While the system hasremained functional, mainly due toparticipants' resilience, it is now time forgovernments to come together to create anenvironment that fosters trade. The ultimategoal should be to create a more open,equitable and transparent tradeenvironment to benefit all participants.

It is the ideal time for international bodiesand individual nations to work together torethink how trade can contribute towardsequitable, sustainable and responsibleeconomies.

The pandemic has shown us how vulnerablepaper-based systems can be. Today, withtech such as blockchain, a globallyaccessible, standardized, integrated,interoperable and decentralized system(s)for performing trade transactions andmoving and validating documents exists.Such a system will provide the freedom andinfrastructure necessary for globalinformation sharing, thus creating a safertrade system less likely to be scammed.

It is encouraging to note the current effortsin the UK and other G7 countries and evenothers worldwide to take courageous stepsforward towards this kind of glorious futurefor international trade. In that case, it willvery likely create the conditions needed tospur on a new golden age for global trade.

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"We need to make sure we're allworking together to change

mindsets, to change attitudes,and to fight against the bad

habits that we have as a society". - Justin Trudeau, the Prime

Minister of Canada

OUR CORPORATE SOCIALRESPONSIBILITY (CSR)COMMITMENTThe world is changing faster than ever and, despiteall good intentions there is deep uncertainty,political and social unrest, poverty, disease,inhumanity, greed and vice persist.

Euro Exim Bank is ever mindful of the wants andneeds of less fortunate people in both our andglobal communities, and we continue to be asponsor of events raising thousands of pounds toassist the great work that our supported charitiesperform, in locations as widespread as St. Lucia,India, Zimbabwe and the UK. By doing these things,we can be elevated to a higher moral plane, wheregiving is certainly more satisfying and rewardingthan receiving.

CSR plays a major part in the operations of ourcompany, fully supported and endorsed by theBoard and management teams. It remains one thehighest strategic ambitions of the company to berecognised as a trusted, sound corporate citizen,with strong policy and action.

Past CSR initiatives have built a solid foundationand our vision is “Enlightening the World for ABetter Tomorrow”.

In the words of our Chairman, Mr Kaushik Punjani,“At Euro Exim Bank, Corporate Social Responsibilityhas always been about taking philanthropicinitiatives to make a difference. Our strategy isestablished in recognition of the sense of duty weperceive towards our customers, employees,specialist agents, partners, suppliers, regulators,media, communities and the environment”.

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"Unless you dream, you’re notgoing to achieve anything".

- Sir Richard Branson

AWARDS

Euro EximBank is proudto berecognised bysome of themostimportant andinfluentialglobalorganisationsandpublicationsfor businessexcellence,innovativeprocesses,technology,tailor-madesolutions, andcustomerservice.

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Graham is an experiencedindustry professional from afinancial services & systemvendors background. Hisextensive career over 35 years(including 20 years at SWIFT),covers global industry utilities,regulators and specialist financialinstitutions in sales, supportingand consulting on businesssolutions across the financialsector. Graham is a regularcontributor to leading tradejournals (GTR, TFR), withpublished articles in FinancialTechnology and Trade Financemagazines. He is also a regularspeaker at international tradeconferences.

OUR ARTICLE CONTRIBUTORS

GRAHAM BRIGHT JPHEAD OF

COMPLIANCE ANDOPERATIONS

EURO EXIM BANK

Adhithyan is a Digital MarketingStrategist graduated from VITUniversity, with an inclination forcreating marketing strategies andquarter on quarter plans for theteam’s marketing initiatives. Hisexperience includes working as acontent marketer for emergingstartups. He also specialises inlead generation, productpositioning, sales enablement,feature adoption, GTM activitiesalong with content marketingand SEO management.

ADHITHYAN SUNDARDIGITAL STRATEGIST

EURO EXIM BANK

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Please send your feedback and suggestions tomathisha.w@euroeximbank.com

trailblazer@euroeximbank.com

Euro Exim Bank Ltd |Registered Head Office

1st Floor, Sotheby Building,Rodney Village, Rodney Bay

Gros-Islet,St. Lucia, West Indies.

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General Inquiries+44 208 207 2868 (UK)

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