Role of trade financing in export support

Abstract

In the article the author considers the importance of trade finance used in international trade to support exports, underlines the significance of individual instruments facilitating the financing of exports, particularly letters of credit. The mechanism of trade finance, the dependence of using its main instruments and the development of exports is examined. The author underlines the differences of trade finance in the supply of goods on the domestic and foreign markets. Particular attention is paid to the dependence of export growth on the export trade financing instruments during the economic crisis.