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Structured Trade Finance (STF) A conceptual Analysis.

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  Structured Trade Finance (STF) A conceptual Analysis. Structured trade finance deals with a type of debt finance, which is used as an alternative to conventional lending. It is regularly used in developing countries and in relation to cross border transactions. The aim is to promote trade by using non-standard security; it is usually used in high value transactions in bi-lateral trading relationships. Structured Trade Finance (STF) is a specialist and more complex type of finance, which is usually associated with  commodity  trading or other high value underlying products or large quantities. We usually see these types of finance set alongside the supply chain and able to be structured to work around terms agreed in large structured bilateral trading relationships. It is most prevalent within the commodity sector and used by processors, producers, traders and end-users. However, the types of finance and security packages vary widely; as there is  warehouse financing (stock) , borrowi

Emergence of private finance companies in sustaining Economic Growth

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The capacity for self sustaining economic growth of any country can not be over emphasized This depends on the economic growth the country achieves over a period of time. Economic growth deals with investment and production and also the extent of Gross Domestic Product in a country. Only when this grows, the people will experience growth in the form of improved standard of living, namely economic development. The following are the roles of private finance in sustaining economic growth/development of a country. Savings-investment relationship To attain economic development, a country needs more investment and production. This can happen only when there is a facility for savings. As, such savings are channelized to productive resources in the form of investment. Here, the role of financial institutions is important, since they induce the public to save by offering attractive interest rates. These savings are channelized by lending to various business concerns which are involved in produ