DC Insight

It's clear that the financial crisis, which we reported on extensively in the last DCInsight, is far from over. Sprinkled throughout this issue of the magazine are reports from various regions on how trade finance is faring in the downturn. Though our lead article notes that interventions by governments and other players in recent months are having some positive impact on the supply of credit, it's nonetheless true that L/C supply is falling far short of demand. Reports from China, Dubai, Nigeria and elsewhere confirm that the market remains tight. We'll stay on top of this story in future issues.

UCP 600 has been in effect for more than two years now, but we're still receiving reactions to it from our contributors. In this issue, we focus on UCP articles 12 and 14, with writers from three countries raising questions about discounting the deferred payment credit, a nominated bank's obligation to the beneficiary and other contentious issues. Though the rules have generally been well received, certain articles continue to produce spirited debate.

In our "Expert commentary", Pavel Andrle, in a closely reasoned article, takes on the thorny issue of fraud and sets out several tests he believes should be met before courts employ the fraud exception. With L/C frauds increasingly common during the financial crisis, it's timely to take a fresh look at fraud and the UCP.

In our "Insight interview" we hear from Thierry Sénéchal, the policy manager of the ICC Banking Commission, who tells us why the Commission is moving in several new directions, not necessarily tied to its core work on L/Cs and guarantees.