The Philippines Central Bank (PCB) has eased the conditions under which the country's thrift banks can issue foreign letters of credit (L/Cs).

The move is the latest in the Philippines' attempts to make L/Cs more available.

Less experience

According to a PCB circular issued this month, the thrift banks will no longer need to show that staff have at least six months of experience or training in export or import financing before they can be issued a foreign L/C license.

The central bank has allowed thrift banks to issue foreign L/Cs since March 2009.

According to PCB's deputy governor, Nestor Espenilla, the relaxation of the rules should make it easier for thrift banks to recruit staff to work in international trade finance operations.

Welcome move

Executive director of the Chamber of Thrift Banks, Suzanne Felix, welcomed the central bank's move, and says that short courses for export and import financing are available.

Felix also notes that the PCB ruling only applies to junior staff in international trade finance operations, and the heads of bank units handling export and import business must have had at least two years relevant experience in larger banks.

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