BAFT releases master loan agreement for bank-to-bank trade loans

Stocks and Financial Services Press Releases Tuesday May 6, 2014 10:14

WASHINGTON — BAFT, the international financial services association, today announced the release of a standard Master Loan Agreement for bank-to-bank trade loans. BAFT, its members, and Berwin Leighton Paisner finalized the MLA and associated legal opinion, with members of the BAFT Trade Loan Documentation Working Group delivering the guidelines for its usage.

The working group was co-chaired by Alain Verschueren, head of sales and market intelligence, for Correspondent Banking at BNP Paribas; Henry Pfeiffer, vice president at J.P. Morgan; and Ruediger Geis, senior product manager for Trade at Commerzbank. The group also included representatives from product and legal areas from nearly 20 international banks. The MLA has also been endorsed by the BAFT Global Trade Industry Council which represents the global heads of trade finance of the world’s largest international trade banks.

The agreement helps standardize definitions and documentation for trade loans and will enable bank clients, government bodies, and investors to better understand trade finance assets. “This initiative helps provide uniformity to the product by clarifying definitions and making the entire process more transparent,” said Pfeiffer. “It has been a pleasure working with this group to help standardize documentation to the benefit of all parties, lenders as well as borrower banks.”

The MLA and related guidelines cover important topics such as documentary requirements, enforceability, sovereign events and compliance requirements to support trade loans between banks.

“We encourage initiatives that facilitate the global trade business. This master trade loan document represents another important step towards standardizing and opening trade business to a wider range of banks and countries and, therefore, has our full support,” said Geis. Commerzbank was also instrumental in the development of BAFT’s Master Participation Agreement (MPA) used by banks and their counterparties around the globe to facilitate the buying and selling of country and bank trade finance related risk.

BAFT will make the MLA available on its website (, and is planning educational sessions for prospective users. The initial version is subject to English Law, and the New York Law version is expected in the coming months. (May 6 2014)--

Latest Press Release

KTC pleases KTC MASTERCARD cardmembers with value online shopping promotions on the JD CENTRAL platform.

Mr. Nattasit Soontranu, Vice President - Credit Card Business, “KTC” or Krungthai Card Public Company Limited, jointly with Ms. Rvisra Chirathivat, Chief Marketing Officer, JD CENTRAL, a leader in e-Commerce technology and retail business in...

Investment Corporation of Dubai เปิดตัวตลาดค้าส่งระดับโลก "Dubai Global Connect"

Investment Corporation of Dubai (ICD) ร่วมมือกับ Dubai South ประกาศเปิดตัว Dubai Global Connect (DGC) ตลาดค้าส่งแบบ B2B บนพื้นที่ 1 ล้านตารางเมตรในดูไบ...

Investment Corporation of Dubai Launches Dubai Global Connect, a Unique Global Wholesale Market

The Investment Corporation of Dubai (ICD), in partnership with Dubai South, announced today the launch of Dubai Global Connect (DGC), a 1 million square meter B2B wholesale market in Dubai which will bring together buyers and sellers to safely and easily...

Krungsri appoints Head of SME Banking Group

Krungsri (Bank of Ayudhya PCL and its business units), a member of Mitsubishi UFJ Financial Group (MUFG), the largest financial group in Japan and one of the world’s leading financial groups, appointed Ms. Duangkamol Limpuangthip as Head of SME...

EXIM Thailand Holds Seminar to Promote Knowledge and Understanding of Security Awareness

Dr. Darmp Sukontasap (third left), Chairman of the IT Strategy and Policy Committee of Export-Import Bank of Thailand (EXIM Thailand), recently welcomed Mr. Chumpol Rimsakorn (third right), Deputy Permanent Secretary of Ministry of Finance, who presided...

Related Topics