Washington has relaxed restrictions on letter of credit (L/C) transactions by US financial institutions with Cuba.

Sanctions imposed on Cuba have been gradually relaxed since December 2014 when US President Barak Obama introduced policy to restore trade and diplomatic relations between the two countries.

L/Cs allowed

US banks are now allowed to provide financing for authorised exports and re-exports.

Banks may issue, advise, negotiate, pay, or confirm L/Cs - including those issued by a Cuban financial institution.

They can also accept collateral for issuing or confirming L/Cs and processing documentary collections.

Authorised exports

The US has revised its licensing policy from possible approval on a case-by-case basis to a general policy of approval for the following exports or re-exports:

Telecommunications equipment; commodities and software that strengthens civil society in Cuba; goods and services that improve the gathering and dissemination of news to the general public; certain agricultural items, and equipment that improves civil aviation safety.

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