14h20 Presentation Controversy Guidance - Dave Meynell

1. O C T O B E R 2 0 1 8
I C C B A N K I N G C O M M I S S I O N
T B I L I S I
1
Documentary Credit Practices:
Controversy & Guidance
C H A I R : D A V I D M E Y N E L L
P A N E L : G A B R I E L E K A T Z / E M I L E R U M M E N S / J O H N T U R N B U L L

2. Issues to be addressed
2
• Gabriele Katz, Director, Deutsche Bank
• Emile Rummens, Senior Risk Manager, Group Trade Finance,
KBC Bank
• John Turnbull, CEO, Certis International Ltd
• Issues to be addressed:
• Usage of drafts under documentary credits: is there a real
need?
• Negotiation: do we have a common understanding?
• The future of UCP: what’s next?
• Discrepancy rates: why are they still so high?

3. Usage of Drafts under documentary credits: is there a real
need?
3
Jakarta Banking Commission April 2017 ‘ Consultation on UCP 600’
• Market feedback from a number of trade practitioners
questions the on-going requirement for drafts in a documentary
credit transaction.

4. Negotiation: do we have a common understanding?
4
Jakarta Banking Commission April 2017 ‘ Consultation on UCP 600’
• Some practitioners recommended removing negotiation as a
form of availability.

5. The future of UCP: what’s next?
5
Jakarta Banking Commission April 2017 ‘ Consultation on UCP 600’
• No revision at this stage.
• The way forward is a greater understanding of practices.

6. Discrepancy rates: why are they still so high?
6
Jakarta Banking Commission April 2017 ‘ Consultation on UCP 600’
• It was reported that the very high rate of discrepancies is a
major problem.

7. Questions?
7