China's export credit agency has agreed to work with two state-owned Chinese commercial banks in an arrangement that will provide exporters with an expanded range of export finance services.

Under the agreement, the Industrial and Commercial Bank of China (ICBC) and the Bank of China (BOC) will provide export credit, local currency settlement and capital clearing businesses on behalf of the China Export and Import Bank (Eximbank).

Support for exporters

The parties have also agreed to cooperate more in international settlement, foreign exchange capital clearing, inter-bank lending and bond trading.

The two commercial banks currently provide a range of trade finance services - including letters of credit - and have already provided services on behalf of Eximbank in 758 deals supporting specified Chinese exports, including machinery, capital equipment, electronic products and high-tech products.

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