The pace of Nepal's letter of credit (L/C) openings is gaining fast after the government eased an embargo on Indian goods.

Banks had all but stopped writing L/C business while stocks of undeliverable imports piled up at Kolkata port and other towns on the Indian side of Indo-Nepalese border.

Volume up

Bankers in Nepal now report that the volume of L/Cs issued started to pick up after January following an easing of border restrictions.

Now they say trading levels are more or less back to normal while some banks are reporting even brisker L/C business than before the embargo.

L/C surge

Nepal Investment Bank Limited (NIBL) said it had seen a surge in L/C openings in the month following the easing of the embargo.

"Currently, 10-15 L/Cs are being opened through our bank daily," according to deputy general manager of NIBL, Rajan Amatya. He added that L/C issuance had now reached 60-70 per cent of normal levels.

Even more openings

Amyata told local media that NIBL had stopped opening L/Cs for nearly two and a half months during the blockade.

Standard Chartered meanwhile said an average of 10 L/Cs were being opened daily, which is more than its pre-blockade numbers of openings.

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