Egypt's L/C shortage prompts firms to sell parts of their businesses

Egypt's struggles to obtain sufficient foreign currency liquidity to establish and maintain a sustainable flow of import letters of credit (L/Cs) has prompted several private and state-owned Egyptian companies to sell parts of their businesses to foreign buyers to access US dollars.

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L/Cs included in new EU measures restricting transfers of funds to Russia

The EU has introduced new measures that will require the notification of transfers of funds exceeding EUR 100,000 (US$109,439) out of the EU by entities in member states that are directly or indirectly owned by more than 40 per cent by Russians or entities established in Russia.

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AfDB approves guarantee facility to support Malawi's NBS Bank's L/C and other trade finance instruments

The African Development Bank (AfDB) has approved a US$7 million trade finance transaction guarantee facility for NBS Bank in Malawi to support local businesses.

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EBRD doubles Uzbekistan's Ipak Yuli Bank L/C-oriented TFP limit

The European Bank for Reconstruction and Development (EBRD) is to provide a financial package of US$45 million to Uzbekistan's Ipak Yuli Bank.

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Blockchain L/C prospects in 2024

The year 2024 is expected to be a pivotal point in the evolution of technology, including in applications related to letters of credit (L/Cs) and other aspects trade finance as well as anti-money laundering compliance according to a senior manager at IT and technology consultancy, Capgemini.

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AfDB signs US$20 million facility for Nigeria's FSDH Merchant Bank's L/Cs and similar trade finance instruments

The African Development Bank (AfDB) has signed a US$20 million trade finance facility agreement with Nigeria's FSDH Merchant Bank to support small- and medium-sized enterprises (SMEs) in the country's industrial and manufacturing sectors.

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New Alternative Letter of Credit facility launched for casualty insurance programmes

A new entity has been formed specifically to launch the Alternative Letter of Credit (ALOC) facility, an off-balance sheet solution for companies that need to post collateral for casualty insurance programmes.

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Citi partners with Traydstream to streamline L/C and collection document processing

Citi has announced a partnership with trade documentation solutions developer Traydstream, with the aim of providing its clients with advanced and automated document processing capabilities.

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Lawyers analyse banks' victory in fraud exception to resist L/C payment case

Lawyers at Singaporean law firm Shook Lin & Bok have published a summary and commentary on the recent decision in the case of Winson Oil Trading versus Oversea-Chinese Banking Corporation (OCBC) and Standard Chartered Bank (Singapore).

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UniCredit fails again to establish fraud exception on L/C used in Glencore-Hin Leong deal

UniCredit has failed in Singapore's Court of Appeal to overturn a decision of a lower court that the Italian bank cannot hold global commodities house Glencore liable for a US$37.2 million loss it sustained in a fraud committed by collapsed trader Hin Leong.

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BAFT publishes new guidelines to stem correspondent banking decline

The Bankers Association for Finance and Trade (BAFT) has released an updated version of its guidelines to help respondents establish and maintain correspondent banking relationships necessary for letter of credit (L/C) amongst other international financial transactions and banking services for other financial institutions.

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Latest Technical Advisory Briefing

Just published - Technical Advisory Briefing from the ICC Banking Commission.

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Banks lose appetite for L/C-enhanced bonds as China's property market slump continues

Financially strained Chinese borrowers are facing a lack of credit-enhanced US dollar denominated bonds backed by standby letters of credit (L/Cs) as the slump in China's housing market causes concerns about defaults amongst lenders.

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World Bank's US$60 million facility for Malawi to back L/Cs for critical imports

Malawi's commercial banks will be better able to access letters of credit (L/Cs) under a new World Bank imports backstopping facility backed by a US$60 million grant from the International Development Association, the multilateral development bank's vehicle for supporting the world's poorest countries.

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Canada simplifies use of L/Cs for federally regulated insurance companies

Canada's Office of the Superintendent of Financial Institutions Canada (OSFI) has issued revised general guidelines to simplify the use of letters of credit (L/Cs) for federally regulated insurance companies (FRIs).

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Annual Survey of Letter of Credit Law and Practice

Just published in the Trade Finance Channel of the Digital Library.

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L/Cs central in new affordable insurance facility for Ukrainian food exports

Affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine's Black Sea ports will be made available through a new US$50 million facility developed by insurance broker Marsh , Lloyd's of London, insurers and Ukrainian state financial institutions.

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Zimbabwe no longer reliant on Afreximbank's L/C support says bank official

Zimbabwe's central bank is no longer in dire need of letter of credit (L/C) support from the African Export-Import Bank (Afreximbank) according to its vice-president of finance, administration and banking services, Denys Denya.

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AfDB and Attijariwafa bank risk participation agreement expected to boost L/C flows in African trade

The African Development Bank (AfDB) has approved a EUR 100 million (US$107 million) trade finance funded risk participation agreement (RPA) facility with Attijariwafa bank, which is based in Morocco and has a footprint in 15 African countries.

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Afreximbank to provide US$95 million AFTRAF facilities to two Burundi banks

The African Export and Import Bank (Afreximbank) has agreed to provide African Trade Facilitation Programme (AFTRAF) facilities totalling US$95 million in favour Banque Banque de Credit de Bujumbura (BCB) and Commerciale du Burundi (Bancobu) to support trade finance in Burundi.

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Creditors and banks await WeWork restructuring

Landlord creditors and issuing banks are waiting to see how the flexible workspace provider WeWork will be restructured since it filed for US bankruptcy protection last week.

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Red flags related to L/Cs included in new US guidance on export control evasion

Purchases under letters of credit (L/Cs) that are consigned to the issuing bank are amongst several red flags listed in new suspicious activity reporting (SAR) guidance to support US financial institutions in reporting potential efforts to evade US export controls.

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GSBN partners with ZAN for tokenised eBL, but interface with digital L/Cs uncertain

Global Shipping Business Network (GSBN), has signed a memorandum of understanding (MoU) with ZAN, a technology brand of Ant Group Digital Technologies, to enter into a partnership to explore technical innovations for tokenising the electronic bill of lading (eBL).

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ICC reports increase in import L/C risks, but post pandemic trade credit remains low risk

Global exposure-weighted default rates for import L/Cs almost doubled from 2021 to 2022, according to the International Chamber of Commerce's (ICC's) latest market forecasts for global trade and trade finance in the emerging macroeconomic climate.

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Fidelity provides L/C to support Afreximbank facility to allow Johnvents to finance commodities in transit

Fidelity Bank Nigeria is providing a letter of credit (L/C) in support of a US$40 million pre-export facility from the African Export-Import Bank (Afreximbank) in favour of Nigerian cocoa processing and trading company, Johnvents Industries.

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New Opinions from the ICC Banking Commission

The latest ICC Opinions from the Banking Commission Meeting held in October 2023 are now available under the Trade Finance Channel of the Digital Library.

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Crédit Agricole successfully appeals decision in US$23.7 million. L/C dispute

PPT Energy, an Indonesia-Japan joint venture company, has been ordered by a court in Singapore to pay Crédit Agricole US$10.3 million in a dispute over fraud perpetrated by the collapsed commodities group, ZenRock.

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Contour trade finance platform to terminate operations

One of the best known developers of digital letters of credit (L/Cs), the Contour blockchain trade finance network, is terminating its operations, Global Trade Review (GTR) has reported.

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India's banks contemplate new blockchain trade finance platform

India's state-owned banks are mulling the establishment of a new unified blockchain technology platform for issuing letters of credit (L/Cs), among other applications for use by their corporate clients.

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Regional ISPs object to BEAD's L/C requirement and suggest alternatives

Six of the largest regional internet service providers (ISPs) in the US have written to commerce secretary Gina Raimondo this week proposing alternatives to the current letter of credit (L/C) requirement for the Broadband Equity Access and Deployment (BEAD) programme.

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Standard Bank and DP World conclude US$365 million facility following trade finance partnership with L/C offering

Multinational logistics and port terminal operator DP World has concluded a US$365 million multi-currency facility agreement featuring letters of credit (L/Cs) with the largest bank in Africa by assets, Standard Bank, to support its logistics and market access expansion across the sub-Saharan Africa region.

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Conflicting views on L/C availability from Iran's 'freed' US$6 billion funds

The Washington Post reported last week that the US and Qatar have agreed to deny Iran access to US$6 billion recently transferred to the Islamic Republic but held in Qatar as part of a deal between Washington and Tehran that led to the release of five imprisoned Americans from Iran last month.

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Latin American and Caribbean growth corporates opt for L/Cs and invoice factoring

Growth corporates in Latin America and the Caribbean (LAC) rely on trade finance instruments such as letters of credit (L/Cs) and invoice factoring as their primary working capital solutions, according to the 2023-2024 Growth Corporates Working Capital Index.

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L/C shortages bringing shipping services to a halt at Bangladesh's primary port

Letter of credit (L/C) shortages are bringing shipping services to a halt at Bangladesh's primary port of Chattogram.

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Lloyds pursues paperless trade ambitions with digital standby L/C and guarantee solution

As part of its ambitious plans to eliminate the physical delivery of paper in trade finance operations, Lloyds Bank has developed a new solution where clients can request digital direct guarantees and standby letters of credit (L/Cs), helping them to trade more efficiently, safely, and securely.

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China and Brazil write L/Cs in first time trade in local currencies

China and Brazil have completed a commercial deal in their local currencies for the first time, with transactions financed and settled in renminbi (RMB) and converted directly into Brazilian reals, according to the Bank of China Brazil.

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New requirement by Lloyd's to validate L/Cs may respond to insurance industry fraud concerns

Lloyd's of London, one of the world's most respected insurance and reinsurance markets, has issued a market bulletin updating requirements around the provision of Tier 2 capital. In the Lloyd's context, Tier 2 capital typically includes letters of credit (L/Cs), bank guarantees and life insurance policies that ensure an insurer or reinsurer meets capital and risk management.

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Manufacturers refused L/Cs as Nigeria struggles with US dollar shortage and central bank mismanagement

Nigerian manufacturers' letters of credit (L/Cs) for essential raw material imports are being rejected by foreign suppliers who are refusing to deliver goods.

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JP Morgan was not entitled to refuse to pay L/Cs on the basis of red flags says Singapore's appeal court

Singapore's Court of Appeal has ruled in favour of Kuvera Resources against JP Morgan Chase Bank after the bank was sued for refusing to pay a coal trader under two letters of credit (L/Cs) because its sanctions screening revealed that doing so would have violated US sanctions.

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Standby L/Cs central to new risk management safety net for banks and credit unions

The Interbank Contingent Liquidity Funding Exchange (ICLFE) has introduced what it describes as a unique market-based cooperative platform, the Interbank Liquidity Exchange (ILE), which is based on reciprocal standby letters of credit (L/Cs).

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Top US commercial bank latches onto StanChart's network to access export, import and standby L/Cs

A top US commercial bank is aiming to help customers expand or tap new markets in Asia, Africa and the Middle East by offering a range of letters of credit (L/Cs) via Standard Chartered Americas' network in some of the world's fastest developing markets.

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L/Cs to help boost Africa's growing market for electric vehicles

Letters of credit (L/Cs) will be used to underwrite transactions in a new trade facilitation platform aimed at accelerating the growing market for electric vehicles (EVs) in Africa.

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Azerbaijan's Rabitabank gets US$10 million ITFC L/C facility

The International Islamic Trade Finance Corporation (ITFC) and Azerbaijani commercial bank, Rabitabank, have signed a US$10 million letter of credit (L/C) confirmation facility to help meet the private sector's trade finance needs.

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Currency diversification continues with StanChart's BDT-INR transaction

Standard Chartered Bangladesh says it has completed the first Indian rupee (INR) denominated trade transaction for Bangladesh's Walton Hi-Tech Industries to facilitate refrigerator and freezer exports to India. This is also the first Bangladeshi taka-INR (BDT-INR) export transaction for Bangladesh's electronics industry.

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Citi Token Services to serve the same purpose as L/Cs and bank guarantees

Citi Treasury and Trade Solutions has announced the creation and piloting of Citi Token Services (CTS) for cash management and trade finance.

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EBRD's L/C oriented TFP steps in to support Ukraine's food security and more

The European Bank for Reconstruction and Development (EBRD) is supporting food security and critical industries in Ukraine by opening a Trade Facilitation Programme (TFP) limit for guarantees and cash advances to enhance KredoBank's product offer and has entered into a new risk-sharing agreement with the Ukrainian bank.

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DBS to offer L/Cs in partnership with NBFCs to grow its Indian SME loan book

DBS India is looking to build its loan book of Indian small- and medium-sized enterprises (SMEs) by partnering with nonbanking financial companies (NBFCs) to provide letters of credit (L/Cs) and other international trade finance offerings that NBFCs cannot provide.

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Irish court refuses rare application to prevent payment under an L/C to restrain payment in aid of an intended arbitration

An Irish High Court has refused an injunction in a rare application to restrain a bank from paying out under a letter of credit (L/C) in aid of an intended arbitration.

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L/C expected in to underpin framework to release allow Ukrainian grain exports

A letter of credit (L/C) is expected to be a key component in a new framework designed to facilitate exports of Ukrainian grain around the world to those countries that need it most.

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Entities possibly linked with fraudulent Vesttoo L/C scandal named

Court filings in Hong Kong have named two entities that may be involved in the Vesttoo scandal involving allegedly fraudulent letters of credit (L/Cs) being used to perpetrate a multi-billion dollar fraud involving insurance fintech, Vesttoo (DC World News, 19 July 2023).

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Nigerian banks benefit from naira devaluation , companies with L/Cs and overseas loans lose out

Nigeria's banks have been cashing in on the devaluation of the Nigerian naira that forced some of the country's largest companies revalue overseas loans and letters of credit (L/Cs)

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DBS and ICICI participate in first international shipment using TradeTrust blockchain

Singapore's DBS and India's ICICI Bank have participated in the successful completion of the first live blockchain paperless transaction using the TradeTrust framework for a shipment between Singaporean and Indian businesses.

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Update on Vesttoo forged L/C scandal, founders sacked and implicated

A new filing in the Vesttoo scandal involving allegedly fraudulent letters of credit (L/Cs) being used to perpetrate a multi-billion dollar fraud involving insurance fintech, Vesttoo (DC World News, 19 July 2023), has shed more light on the size of the scam.

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BRICS summit underlines potential for more non-dollar denominated L/Cs

Discussions on financing trade and investment in non-US dollar denominated currencies during the two day summit of the BRICS nations in Johannesburg last week underlined the serious intent driving the de-dollarisation movement. It potentially challenges the dominance of the US dollar in the letter of credit (L/C) market as well as the euro in wider trade finance and investment markets.

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Standby L/Cs open up US$45 billion-a-year US military exports market to commercial financing

The US has introduced a new foreign military sales (FMS) policy that enables some of Washington's allies and partners buying US-made defence products and services to obtain commercial financing on standby letter of credit (L/C) terms.

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Absa becomes first African bank to join Contour's digital trade finance network

Absa Corporate and Investment Bank (CIB) has become the first African bank to officially join Contour's digital trade finance network.

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Court dismisses Winson's claim against OCBC and Standard Chartered because 'fraud exception' is established in L/C transactions

The high court in Singapore on Friday dismissed Winson Oil Trading's claim against OCBC and Standard Chartered for a total of US$60.9 million because the 'fraud exception' had been established.

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Vietnamese traders advised to use L/Cs to avoid trade disputes with Indian counterparties

Vietnam's trade counsellor in India, Bui Trung Thuong, has recommended that Vietnamese traders should do business on letter of credit (L/C) terms in their dealings with Indian business partners.

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Lloyds expands access to export L/Cs through partnership with UBS

London-headquartered Lloyds Bank has launched a new strategic trade partnership with Switzerland-based UBS that will allow the British bank's UK customers to benefit from the Swiss bank's 700-strong global banking network, and provide them with enhanced access to export letters of credit (L/Cs).

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ICC and Swift launch API for bank guarantees and standby L/Cs

The International Chamber of Commerce (ICC) and financial messaging services provider Swift have released the first application programming interface (API) industry standards for bank guarantees and standby letters of credit (L/Cs).

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L/Cs ensured that Pakistan's Covid support financing was not misdirected

State Bank of Pakistan (SBP) governor, Jameel Ahmad, has told a senate committee that letters of credit (L/Cs) ensured that loans made under the concessionary Temporary Economic Refinance Facility (TERF) to some businesses during the Covid pandemic were not used for any purpose other than for purchasing plant and machinery.

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Fraudsters sentenced for fraudulently obtaining L/Cs

A court in Mumbai has sentenced eight executives of a Indian textile firm and a chartered accountant to three years in jail for fraudulently obtaining letters of credit (L/Cs) and other trade finance facilities from state-owned Bank Baroda.

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Repercussions of alleged Vesttoo fraud may sap confidence in L/Cs as collateral

Repercussions of the scandal involving allegedly fraudulent letters of credit (L/Cs) being used to perpetrate a massive US$4 billion fraud involving insurance fintech, Vesttoo (DC World News, 19 July 2023), are sounding across the insurance and reinsurance sectors.

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MUFG joins Contour's digital L/C network

The Singapore office of Japan's largest bank, MUFG, has joined the Contour trade finance network that uses blockchain to digitise letters of credit (L/Cs).

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Dangote's US$940 million loss on L/C and foreign vendor balance revaluations reflects Africa's post-pandemic difficulties

Revaluation of letters of credit (L/Cs) and foreign vendor balances due to the devaluation of Nigeria's currency against the US dollar have precipitated losses of 184.8 billion Nigerian naira (N184.8billion - US$940 million) at the cement and sugar companies in the Dangote Group, West Africa's largest conglomerate and one of the largest on the African continent.

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Investigations and litigation underway in alleged US$4 billion Vesttoo insurance scandal

Investigations and some litigation is underway into allegations that fraudulent letters of credit (L/Cs) were used to perpetrate a massive US$4 billion fraud involving insurance fintech, Vesttoo (DC World News, 19 July 2023).

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Persistent L/C woes in South Asia's frontier economies

The Karachi Chamber of Commerce and Industry (KCCI) has called on the authorities in Pakistan to intervene over what it describes as the persistent refusal of the country's commercial banks to open letters of credit (L/Cs).

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UAE and India sign agreements to facilitate domestic currency trading

The UAE has become the latest country to agree with India to use domestic currencies for conducting cross-border transactions instead of US-dollar payments channelled through the SWIFT network.

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Sberbank issues L/Cs to help Russian company enter Indian market

Russia's Sberbank says it issued a letter of credit (L/C) to facilitate a merger and acquisition deal enabling a Russian company to enter the Indian market by acquiring a functioning business in its sector that is already operating in India.

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Bangladesh reports record low import L/C values in a year

Bangladesh has reported that US dollar-denominated import letter of credit (L/C) openings in June fell to their lowest level for a year, reflecting the continuing difficulties importers there face as the central bank restricts L/C openings to preserve the country's foreign exchange reserves.

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Forged L/Cs central to US$4 billion fraud at Tel Aviv based insurance fintech

Fake letters of credit (L/Cs) were used to perpetrate a massive US$4 billion fraud involving an insurance fintech, Vesttoo, an Israeli tech publication, CTech, has alleged.

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IDB Invest closes L/C to increase mobile broadband coverage in rural Colombia

The private sector affiliate of the Inter-American Development Bank (IDB) has closed a standby letter of credit (L/C), for 197.4 billion Colombian pesos (COP197.4 billion - US$47.5 million) to Colombia Móvil (Tigo), a major player in the Colombian telecommunications industry.

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New ICC paper published under Digital Library: Price checking of goods and services in trade transactions

This paper provides an updated discussion on the challenges associated with the implementation of controls relating to price misrepresentation risk in trade finance transactions; the prevalent financial industry-wide approach to price checking; and the feasibility of potential price checking controls.

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New ICC paper published under Digital Library: ICC Dual-use goods and proliferation financing

This paper provides an updated discussion on a) the challenges associated with the implementation of controls relating to the identification of DUG risk in trade finance transactions; b) the prevalent financial industry-wide approach to DUG; and c) the feasibility of potential controls for the effective identification of DUG.

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TradeCap arranges L/Cs for apparel brand start-up unable to obtain conventional bank finance

TradeCap Partners, which provides an online platform for purchase order financing, says it has stepped in to provide letters of credit (L/Cs) for a woman-owned start-up apparel brand that was unable to obtain finance from conventional banking outlets.

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Bangladesh and India signal drift away for US dollar with inaugural INR L/C transactions

Bangladesh and India on Tuesday commenced trading in Indian rupee (INR), signalling one more global shift away from US dollar-denominated trade finance.

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ISBP 821 now published in the Digital Library

The International Standard Banking Practice (ISBP), first approved by the ICC Banking Commission in 2002 (Publication 645), updated in 2007 (Publication 681), and again in 2013 (Publication 745), has developed into an invaluable aid to

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US$250 million L/C availability in First Solar's new US$1 billion financing

First Solar, the largest solar manufacturer in the US, announced on Friday that it had entered into a five-year revolving credit and guarantee facility for US$1 billion.

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eUCP 2.1 and eURC 1.1 rules published in the Digital Library

It is very important to note that this was not a revision nor an update of the eUCP. It was solely an alignment with MLETR with respect to electronic transferable records.

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Disparity in L/C distribution supports eastern Libya's strong man's threat of military action

Disparity in the distribution of letters of credit (L/Cs) to the eastern and western regions of Libya is being used by the country's strong man in the east, field marshal Khalifa Haftar, in support of his threat of military action if a higher financial committee is unable to arrange a fairer distribution of the country's substantial oil revenues.

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ICC releases eUCP Version 2.1 to align with MLETR

The International Chamber of Commerce (ICC) has released Uniform Customs and Practice for Documentary Credits for Electronic Presentation (eUCP) Version 2.1.

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Non-existent standby L/C helped fraudsters obtain US$1 million up-front fee

A court in the US state of New Jersey has sentenced two men to prison for their parts in a US$1 million up-front fee fraud that centred on a purported standby letter of credit (L/C) that the fraudsters said would help their victims import gold.

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Walbing chooses Smart Label for its IoT driven L/C alternative

German fintech Walbing has chosen a tracking device called the Smart Label to form the basis of a new supply-chain trading solution that aims to provide an alternative to manual paper-based payment processes such as letters of credit (L/Cs) in international trade.

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Standby L/Cs and bank guarantees for enterprises and investors in Abu Dhabi

Standby letters of credit (L/Cs) and bank guarantees should become easier to access for some Abu Dhabi-based businesses under a new partnership arrangement between Abu Dhabi Islamic Bank (ADIB) and the Abu Dhabi Investment Office (ADIO).

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Santander invests in digital trade platform Komgo

Santander Corporate & Investment Banking (Santander CIB), has become a shareholder in Komgo, which offers an increasing range of digital trade finance solutions, including letters of credit (L/Cs), account receivables financing, and know-your-customer processing.

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Appeal court rules HSBC should not have refused L/C payment for document discrepancies

HSBC Bank Malta has been accused by an appeal court of being too rigid and mechanical in its document vetting processes that led it to refuse to honour payment on a EUR 200,000 (US$219,000) letter of credit (L/C) in favour of a supplier.

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Technology enhanced L/Cs help Afreximbank's progress across the continent

Letters of credit (L/Cs) have helped the African Export-Import Bank (Afreximbank) to become perhaps the bank with the most extensive reach on the continent according to the bank's president, Benedict Oramah.

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Multinational Berger Paints steps in to help Bangladesh's forex crisis

Berger Paints has stepped in to help its operations in Bangladesh obtain letters of credit (L/Cs) that have become increasingly hard to come by as the south Asian country struggles with a continuing foreign currency crisis.

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Digital Commercialisation Briefings

A new section "Digital Commercialisation Briefings" has been added to Trade Finance Channel of the ICC Digital Library.

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Over US$77 million in GTFP trade finance guarantees for Ukraine

Since February 2022, the International Finance Corporation's (IFC's) Global Trade Finance Program (GTFP)has facilitated over US$77 million in trade finance guarantees for banks in Ukraine to enable imports of essential goods.

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Bank Pasargad and Sberbank couple BGLs with domestic L/Cs to facilitate trade between Iran and Russia

Iran's Bank Pasargad and Russia's Sberbank have announced that they have established a banking guarantee letter (BGL) which they describe as a 'novel' financial instrument to facilitate trade between the two countries using their own currencies.

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L/Cs and shell companies used in one of India's largest fraud cases to date

A businessman has been accused by India's enforcement directorate (ED) of using fraudulent letters of credit (L/Cs) and a network of shell companies to cheat banks out of the equivalent of around US$6.8 billion.

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L/Cs and document collection can protect against TBML

Letters of credit (L/Cs) and document collection can protect against trade-based money laundering (TBML) according to a research paper written by a professor at the Bangladesh Institute of Bank Management, Shah Md Ahsan Habib.

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L/Cs feature in awards for Ukrgasbank and EBRD

A letter of credit (L/C) transaction managed by Ukraine's state-owned Ukrgasbank has won the Deal of the Year (Green Trade) awarded by the European Bank for Reconstruction and Development (EBRD).

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Annual Survey of Letter of Credit Law and Practice

94 legal case summaries from the 2018 Annual Survey of Letter of Credit Law and Practice highlighting the most significant trade finance legal cases of 2017-2018.

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South Korea's largest trader goes for Contour's L/C settlement process

South Korea's largest trading company, Posco International, will be able to adopt a fully digital end-to-end letter of credit (L/C) settlement process now it has joined digital trade finance network Contour.

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Egypt defers L/C openings and mulls non-US dollar transactions

Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), has deferred opening letters of credit (L/Cs) to pay for wheat imports to alleviate financial pressures caused by a shortage of US dollars according to the country's supply minister, Ali Moselhy.

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India's state-owned gas utility adopts digital L/C and bank guarantee solution

India's state-owned natural gas utility, GAIL, supported by Swift India, says it has adopted a solution that will enable it to digitise letter of credit (L/C) and bank guarantee transactions.

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Demands to end L/C requirement in US broadband rollout continue

The National Telecommunications and Information Administration (NTIA) should not require a letter of credit (L/C) for its grant funding programmes to stimulate the rollout across the US of broadband infrastructure because it squeezes out small- and minority-owned service providers, industry leaders told delegates at a Broadband.Money event last week.

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Blockchain L/C in Thai-Indonesian chemical market brings green benefits

Thailand's Bangkok Bank and Indonesia's Permata Bank have collaborated to complete a blockchain letter of credit (L/C) transaction in the Thai-Indonesian chemical market.

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Thailand joins countries in search of non-US dollar L/C solutions

Thailand has joined the apparently increasing number of countries looking to facilitate non-US dollar letter of credit (L/C) and other international trade finance transactions.

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Layered L/Cs could be used to circumvent sanctions imposed on Russia

Layered letters of credit (L/Cs) could be used to circumvent trade sanctions imposed on Russia intended to deny it to the goods, technologies and revenue necessary to pursue its military operations in Ukraine the UK government has warned.

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London court rejects UniCredit's claim not pay interest on late L/C payments due to sanctions

A court in London has rejected UniCredit's claim that it need not pay interest to aircraft leasing company Celestial Aviation Services for late payment of a debt because the payment put it at risk of breaching of UK sanctions against Russia.

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Sri Lanka scraps cash margin on import L/Cs

The Central Bank of Sri Lanka (CBSL) has withdrawn with immediate effect a cash margin requirement on import letters of credit (L/Cs) imposed over the previous 12 months.

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ICIEC signs US$42 million reinsurance of documentary credit insurance policy agreement with Saudi Eximbank

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) says it has signed a US$42 million facultative reinsurance agreement with Saudi Export Import Bank (Saudi Eximbank) for a documentary credit insurance sub-policy limit in favour of Riyadh Bank with a tenor of up to 12 months.

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Awards recognise Contour's blockchain L/C progress

Digital letter of credit (L/C) developer Contour has been awarded for the progress it has made with its digital trade finance solution, most recently for its work to improve commodity trade financing and for its impact on digital trade finance solutions in Saudi Arabia.

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Pakistan's opening of L/C for Russian oil in yuan raises questions

Pakistan has opened a yuan-denominated letter of credit (L/C) with the Bank of China to finance its first purchase of Russian oil which is expected to arrive in the last week of May.

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Trade Technologies announces production release of TradeBridgeAPI Bank

International trade document solutions provider, Trade Technologies, has announced the production release of its TradeBridgeAPI Bank.

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Go First Airways asks court for moratorium to stop lessors invoking L/Cs

Go First Airways, which filed for bankruptcy last week, is seeking a moratorium from India's National Company Law Tribunal (NCTL) to restrain lessors from taking back its aircraft and creditors from cashing guarantees and letters of credit (L/Cs).

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New Opinion from the ICC Banking Commission

The latest ICC Opinion TA930rev from the Banking Commission Meeting held in April 2023 is now available under the Trade Finance Channel of the Digital Library.

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South Korea mulls government support to extend maturity of import L/Cs for key exporters

The South Korean government will consider ways to give preferential discount rates on export bills or extend the maturity of import letters of credit (L/C) for certain exporters as part of its plans to provide comprehensive financial support for the country's exporters.

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Lessors invoke L/Cs as India's Go First Airways collapses

Six lessors of planes have invoked letters of credit (L/Cs) issued to them by banks in respect of aircraft leased to India's Go First Airways which filed for bankruptcy this week.

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Standard Chartered Sri Lanka ready to handle Indian rupee denominated L/Cs

Standard Chartered Sri Lanka has completed its first Indian rupee transaction for a multinational corporate client in the form of an outward telegraphic transfer between Sri Lanka and the bank's office in Mumbai, India.

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India's ICICI Bank joins trend to reduce reliance on US dollar in international trade finance

India's ICICI Bank is adding a rupee vostro account (RVA) to its digital online trade platform that includes letter of credit (L/C) functionality according to an official statement.

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Egypt releasing goods stranded at ports due to foreign currency and L/C shortages

Egypt has been steadily releasing goods left stranded at ports this year due to insufficient foreign currency to cover letters of credit (L/Cs) to secure their release.

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Sanctions and China challenging conventional US dollar denominated L/C transactions

Western sanctions preventing Russia selling oil and other commodities on conventional US dollar denominated letter of credit (L/C) terms via the SWIFT messaging platform may be one factor accelerating the growth of international trade in other currencies and alternative cross-border payment systems.

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Lack of L/Cs halts vehicle production in Pakistan

Restrictions on opening letters of credit (L/Cs) for imports, a chronic foreign exchange crisis and severely disrupted supply chains have forced vehicle manufacturers in Pakistan to extend factory shutdowns as the country teeters on the edge of a full-blown recession.

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First Indian domestic end-to-end blockchain enabled L/C transaction completed on Contour

Citi India says it has completed the first domestic end-to-end blockchain enabled letter of credit (L/C) Transaction on Contour, the blockchain-based trade platform focused on digitising L/C processing,

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AfDB continues rollout of trade finance transaction guarantee facility

The African Development Bank (AfDB) is continuing its efforts to facilitate letter of credit (L/C) flows in Africa by approving a trade finance transaction guarantee facility for Banque Commerciale du Burundi (Bancobu).

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L/C offerings help Regions Bank win SBA honours for helping US-made small-business products into the global marketplace.

The provision of letters of credit (L/Cs) to support export operations of US small businesses has helped Regions Bank win the US Small Business Administration's (SBA's) 2023 Export Lender of the Year Award.

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ICC publishes best practice guidance for documentary credits

The International Chamber of Commerce (ICC) has published a compendium comprising a set of four updated guidance papers on trade finance providing best practices on the usage of documentary credits and compliance with ICC banking rules.

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Banks in Iran and Russia ready to bypass SWIFT to write L/C business

Banks in Iran and Russia are now able to bypass the SWIFT messaging system and conduct letter of credit (L/C) and other trade operations over two interconnected national platforms they have established according to an official at the Central Bank of Iran (CBI).

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MIGA teams up with EBRD to support trade finance for Ukraine and beyond

The Multilateral Investment Guarantee Agency (MIGA) and the European Bank for Reconstruction and Development (EBRD) have announced an agreement in which MIGA will issue up to US$200 million in trade finance guarantees to EBRD to support trade transactions conducted through state-owned banks in emerging market and developing economies, with Ukraine being the first country to benefit from this support.

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L/Cs feature in US$1.5 billion ITFC work programme for Egypt

Digitising letters of credit (L/Cs) features in the International Islamic Trade Finance Corporation's (ITFC's) 2023 Annual Programme with Egypt.

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Banks' refusal of L/Cs for Kenya's NOC prompts Gulf oil producers to turn to private sector

Africa-focused banks have refused to issue letters of credit (L/Cs) to finance purchases of refined oil products from the Gulf by Kenya's state-owned National Oil Corporation (NOC).

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Banking turmoil makes it a good time for landlords to review L/Cs held as lease security

Recent turmoil in the banking market makes it a good time for landlords to "do some spring cleaning" and review any letters of credit (L/Cs) held as lease security, according to a Washington-based real estate attorney at Holland & Knight.

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Cameco to receive refund on some, but not all L/Cs lodged in protracted ongoing tax dispute

The world's largest publicly traded uranium company, Cameco, is to receive a refund on some of the letters of credit (L/Cs) it has posted with the Canadian government in its protracted dispute with the Canada Revenue Agency (CRA).

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Annual Survey of Letter of Credit Law and Practice

91 legal case summaries from the 2017 Annual Survey of Letter of Credit Law and Practice highlighting the most significant trade finance legal cases of 2016-2017.

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London court says sanctions did not allow UniCredit to refuse L/C payments

A court in London gave judgment last week in favour of Celestial Aviation Services in its case against UniCredit after determining that the aircraft lessor made valid demands under letters of credit (L/Cs) last year while UniCredit's view that the demands were invalid was wrong.

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Pan-African Absa CIB close to joining Contour digital trade finance network

Contour has announced that Pan-African Absa Corporate and Investment Bank (Absa CIB) is intent on joining its digital trade finance network and is in the process of finalising negotiations.

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AfDB guarantees for L/C confirmation to help keep correspondent banks in African

Guarantees for letter of credit (L/C) confirmations are included in a US$30 million facility for trade and small- and medium-sized enterprise (SME) finance approved by the African Development Bank (AfDB) for Family Bank in Kenya.

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Truzo wins UK regulatory approval for digital escrow L/C alternative

Truzo, an Africa-focused digital escrow platform that offers traders an alternative to letters of credit (L/Cs), has been approved to do business in the UK where it has gained approval from Britain's Financial Conduct Authority (FCA).

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Surecomp and Contour partner to broaden digital L/C access and address digital interoperability issues

Contour, which is developing a platform that digitises letters of credit (L/Cs), is partnering with Surecomp, which provides back-office applications to provide users with a fully integrated end-to-end trade service solution.

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Advice for landlords holding L/Cs issued by SVB and those where the bank is a tenant

Business law firm Buchalter has published advice to landlords holding letters of credit (L/Cs) issued by Silicon Valley Bank (SVB), and landlords where the collapsed bank is a tenant.

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Developments at Silicon Valley Bank and L/Cs

The decision by the US Federal Deposit Insurance Corporation (FDIC) to place California-based Silicon Valley Bank (SVB) into receivership has raised many questions amongst banks, businesses and other parties to letters of credit (L/Cs) involving the failed tech-specialist bank.

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Indonesia's Bank BTPN partners with Surecomp to support L/C growth

Indonesia's Bank BTPN has chosen to partner with Surecomp to digitise its back-office trade finance processing and support the privately owned bank's growing letter of credit (L/C) business.

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Sri Lanka and India consider trade in Indian rupee as the island's bankrupt economy continues to stymie L/C transactions

Sri Lanka and India are considering the use of the Indian rupee for economic transactions.

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AerCap recoups most L/C proceeds related to Ukraine conflict

The world's biggest aircraft lessor, AerCap, says it has recovered most of the proceeds from letters of credit (L/Cs) related to Russian lessees.

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Contour sets sight on Chinese commodity flows in partnership with TradeGo

Contour, the global digital trade finance network, has announced a strategic partnership with TradeGo, a blockchain-based commodity trading service platform that enables the secure and transparent transfer of electronic bills of lading (eBLs).

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ICC Guidance Papers

Take a look at the latest Briefing n°6 - 28 February 2023

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Alleged fraudster offered US$15 million in L/Cs in Trafigura nickel fraud

Prateek Gupta offered to pay metals trader Trafigura US$15 million in letters of credit (L/Cs) to repair the "rapidly deteriorating trading relationship" between the Indian business mogul and the Switzerland-based metals trader, the Financial Times (FT) has reported.

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What happens when banks' role providing guarantees through L/Cs is compromised? IMF paper analyses.

The International Monetary Fund (IMF) has published a comprehensive paper analysing what happens when banks' critical role providing guarantees through letters of credit (L/Cs) is compromised.

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First digital marine fuels deal outside Singapore flags potential for L/C transfers

Marine energy solutions provider and trader KPI Ocean Connect, container shipping line Pacific International Lines (PIL), and physical marine fuel supplier Bunker One have completed their first live electronic marine fuel inventory statement for an overseas delivery through the Singapore Trade Data Exchange, (SGTraDex).

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Finastra mulls sale of its digital L/C supportive banking unit

Finastra, a fintech that provides banking solutions supporting digital letter of credit (L/C) and many other trade finance offerings, is mulling the sale of its universal banking unit for as much as US$7 billion according to the Reuters news agency.

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Increased use of L/Cs during 2022 analysed by Deutsche Bank trade financier

Tighter liquidity conditions last year stimulated an increased use of traditional trade finance products such as letters of credit (L/Cs) to help manage working capital and mitigate risk according to global co-head of trade finance and lending at Deutsche Bank, Atul Jain.

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UK's Serious Fraud Office secures three convictions in US$500 million trade finance fraud

The UK's Serious Fraud Office (SFO) has secured convictions of two executives of British steel trading business, Balli Steel, on six counts of fraud.

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Annual Survey of Letter of Credit Law and Practice

64 legal case summaries from the 2016 Annual Survey of Letter of Credit Law and Practice highlighting the most significant trade finance legal cases of 2015-2016.

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ICC publishes four guidance papers on documentary credit usage

The International Chamber of Commerce (ICC) has published a compendium of four guidance papers on documentary credit usage for trade finance practitioners.

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L/Cs not involved in potential US$577 million nickel fraud at Trafigura

Trafigura Group has revealed that it stands to lose more than half a billion dollars after discovering a "systematic fraud" committed by a group of companies connected to and apparently controlled by Prateek Gupta, including TMT Metals and companies owned by UD Trading Group.

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Russian crude exports bypassing L/C restrictions, finding new markets

Russia has continued to export almost as much seaborne crude since the near Europe-wide ban on Russian oil imports imposed by the EU, Switzerland and the UK imposed in December last year according to analysis by Energy Intelligence.

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US$2.8 billion standby L/C central in Videocon fraud case

Troubled Indian conglomerate, Videocon Group, laundered the equivalent of around US$7.3 billion it had obtained from a consortium of banks, India's Enforcement Directorate told a special Prevention of Money Laundering Act Court last week.

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White paper explains how L/Cs may play a role in deep-tier supply chain finance

The Asian Development Bank has published a white paper on deep-tier supply chain finance (DTSCF), which potentially extends financing access and transparency down the chain to even the smallest suppliers.

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Tata Power partners with Contour to implement end-to-end digital L/C settlement

One of India's largest integrated energy companies, Tata Power, has partnered with digital trade finance network Contour to implement an end-to-end digital letter of credit (L/C) settlement process.

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Iran and Russia sign MoU to bypass Swift for L/C and guarantee business

Iran and Russia have signed a memorandum of understanding (MoU) to use their own financial messaging system for bilateral trade between the two countries.

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EIB extends L/C and trade-related guarantees for Greek companies

Greek companies engaged in international activities are expected to benefit from a new EUR 200 million (US$218 million) trade finance partnership between the European Investment Bank (EIB) and HSBC that supports letters of credit (L/Cs) and trade-related guarantees.

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Vital trade finance support features in EBRD's plans to deliver EUR 3 billion to Ukraine in 2022-23

The European Bank for Reconstruction and Development (EBRD) deployed EUR 1.7 billion (US$1.85 billion) in Ukraine in 2022 and mobilised a further EUR 200 million via partner banks.

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Twitter landlord draws on L/C to settle outstanding rent bills

At least one of Twitter's landlords has been forced to draw down on letters of credit (L/Cs) as the social media platform fails to pay rent for its US offices.

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Surecomp enables further L/C, open account and collection efficiencies with Traydstream partnership

Canadian fintech Surecomp says it has finalised a partnership agreement with London-based fintech Traydstream to integrate document checking powered by artificial intelligence into its collaborative RIVO trade finance platform.

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Ghanaian startup to offer L/C alternative, raises US$13 million in debt and equity

Jetstream Africa says it will use its technology, networks and systems to help African companies finance transactions without having to obtain letters of credit (L/Cs) from conventional lenders.

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Libya releases 2022 data on commercial banks' foreign exchange and L/C usage

Libya's commercial banks transferred more foreign exchange in 2022 to cover letters of credit (L/Cs) or other transfers to Europe than to the rest of the world, according to the Central Bank of Libya's (CBL's) latest data on foreign exchange used by the country's commercial banks.

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London-based GTBank's 'particularly egregious' conduct and serious AML weaknesses lead to US$9.4 million fine

The UK's Financial Conduct Authority (FCA) has fined Guaranty Trust Bank UK (GT Bank) £7.7 million (US$9.4 million) for serious weaknesses in its anti-money laundering (AML) systems and controls between October 2014 and July 2019.

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Traders protest on the street as Pakistan's L/C flows remain severely restricted

Despite recent directives from the State Bank of Pakistan (SBP) apparently encouraging banks to make it easier for some importers to open letters of credit (L/Cs), reports suggest that the country's lack of foreign exchange is blocking access to L/Cs and hampering trade across most sectors.

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Trade finance banks fraudulently used to keep ailing steel trader Balli afloat

One of five individuals charged with various fraud offences in relation to the activities of collapsed Anglo-Iranian steel trader Balli has denied allegations that the company secured letters of credit (L/Cs) for the benefit of steel companies in a last ditch attempt to raise funds.

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Landmark US$1.5 billion funding unlocks the start of Afreximbank operations in the Caribbean

The African Export-Import Bank (Afreximbank) has approved a landmark US$1.5 billion funding that unlocks the start of the bank's operations in the Caribbean. It enables member states of the Caribbean Community (CARICOM) that have ratified the partnership agreement with Afreximbank to tap into the bank's various financial instruments.

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MIGA's announces details of L/C support provided under new Trade Finance Guarantee

The Multilateral Investment Guarantee Agency (MIGA) has announced details of the Trade Finance Guarantee facility it created in 2021 in response to the impact the Covid-19 pandemic had on global supply chains.

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ICICI Bank's new suite of digital solutions for exporters includes L/C facilities

India's ICICI Bank has announced the launch of a suite of digital solutions for exporters offering a comprehensive set of banking and value-added services on a single platform.

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AfDB's US$40 million trade finance package for Bank One of Mauritius includes L/C guarantees

The African Development Bank (AfDB) has approved a US$40 million trade finance package in favour of Bank One of Mauritius.

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CBE cancels L/C requirement, but Egypt remains desperately short of foreign exchange

The Central Bank of Egypt (CBE) last week cancelled a February 2022 circular requiring the use of letters of credit (L/Cs) for imports, as demanded by the International Monetary Fund as a condition in its US$3 billion support package for the country approved last month.

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SABB expected to provide L/Cs in support of Saudi plans to create the world's largest culture and heritage destination

The Saudi British Bank (SABB) has signed a memorandum of understanding (MoU) to support the authority charged with realising Saudi Arabia's ambitious plans to create the world's largest culture and heritage destination, which aims to attract more than 25 million visitors annually.

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Pakistan's internet rollout stalled by L/C difficulties

Difficulties opening letters of credit (L/Cs) are stalling the process of building infrastructure to provide universal internet access across Pakistan.

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AfDB approves US$10 million trade finance transaction guarantee for Banco Fomento de Angola

The African Development Bank (AfDB) has approved a US$10 million trade finance transaction guarantee for Banco Fomento de Angola (BFA).

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US$3 billion IMF package for Egypt could facilitate L/Cs but put pressure on the pound

The International Monetary Fund (IMF) has approved a US$3 billion loan for Egypt which aims to help the country meet the balance of payments need and provide support to the budget.

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Libya's discredited L/C system targeted by military backers of eastern parliament

Saddam Haftar, the son and adviser of commander of the Tobruk-based Libyan National Army (LNA), Khalifa Haftar, is reportedly seeking to take control of banking institutions in eastern Libya. Two administrations, one of which is based in eastern Libya, are vying to govern the entire country.

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Austrac publishes prevention of TBML guidance targeted at L/C and other trade finance providers

Australia's government agency for detecting, deterring and disrupting financial crime has published guidance providing indicators and behaviours to help financial service providers - particularly those engaged in trade financing - to detect and report suspicious financial activity.

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Egypt easing controversial L/C restrictions

The Central Bank of Egypt (CBE) has issued a resolution to make it easier for importers to obtain letters of credit (L/Cs) and documentary collections that have been restricted over the past year to support government efforts to maintain foreign exchange reserves, according to prime minister Mostafa Madbouly.

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Banks in Pakistan refusing L/Cs for Russian wheat, may hinder discounted oil deal with Moscow

Banks in Pakistan have refused to open letters of credit (L/Cs) for Russian wheat imports for fear of the US fining them under sanctions imposed by Washington on Russia in response to its invasion of Ukraine, according to a report in the Express Tribune newspaper.

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Incomplete charges and L/C concerns hamper prosecution of possibly India's biggest bank fraud

An Indian court on Friday granted bail to Rishi Kamlesh Agarwal, former chairman and managing director of ABG Shipyard. He and the company are the main accused, alongside others, in a long running investigation into alleged fraud at the shipyard, but there are serious concerns about the veracity of charges filed by investigators.

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Singapore court upholds J P Morgan's refusal to pay L/Cs on grounds of sanctions violations

Singapore's High Court has ruled in favour of J P Morgan Chase Bank after it was sued for refusing to pay a coal trader under two letters of credit (L/Cs) because its sanctions screening revealed that doing so would have violated US sanctions.

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Bangladesh Bank suspends L/Cs to counter TBML and preserve foreign exchange

Bangladesh Bank has suspended 100 letters of credit (L/Cs) for over-invoicing, according to the central bank's governor, Abdur Rouf Talukder.

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Maersk and IBM abandon ship on blockchain trade platform with digital L/C potential

Insufficient industry support for their digital venture has caused international shipping giant A P Moller - Maersk (Maersk) and IBM to abandon their joint Tradelens blockchain-based supply chain platform initiative for international shipping.

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Commodity focused Komgo acquires trade finance specialist GTC to expand global reach

Swiss headquartered commodity trade finance blockchain platform Komgo has acquired Canada based GlobalTrade Corporation (GTC), which provides several letter of credit (L/C) solutions amongst its range of digital multi-bank trade finance solutions for corporates.

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Inflation driving captive insurers away from L/Cs towards trusts

Global inflation could precipitate a move away from letters of credit (L/Cs) as the preferred option for collateral put up by captive insurers that are set up and wholly owned by non-insurance companies to act as a direct insurer or reinsurer for a parent company and its subsidiaries.

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UK guidance on L/C usage follows EU advice as Russian oil import ban fast approaches

The UK has issued guidance on restrictions on the provision of letters of credit (L/Cs) once the near Europe-wide ban on Russian oil imports begins next week. The British and Swiss governments have aligned their approaches with the EU and other partners such as the G7 to maximise the impact of these measures on Russia.

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EBRD's green trade growing in L/C supportive TFP

Green trade under the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP) is growing, according to the bank's Task Force on Climate-related Financial Disclosures (TCFD) Report 2021.

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AllianzGI launches second trade finance fund with exposure to investment grade L/Cs

Allianz Global Investors (AllianzGI) has announced the launch of its second trade finance fund to offer investors exposure to ultra short-term trade finance receivables, including letters of credit (L/Cs), with investment grade credit risk.

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Non-disclosure of L/C liabilities behind alleged US$1.1 billion fraud by Indian pen manufacturer

India's Central Bureau of Investigation (CBI) has charged Kanpur-based pen manufacturer Rotomac Global and its directors with defrauding Indian Overseas Bank of 750 crore Indian rupees (Rs750 crore), the equivalent of around US$1.1 billion.

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Judgment of UK court reinforces previous rulings stressing consistency with UCP 600 terms

A German textile manufacturer has successfully petitioned a UK court to establish that an English trade finance provider failed to establish an arguable case to justify that a letter of credit (L/C) it issued could be interpreted as, in practice, revocable given that it was made as an irrevocable instrument expressly on UCP 600 terms.

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L/Cs in sustainable financings gaining traction, despite lack of common standards and market definition

While earlier efforts to link sustainable trade finance principles with letters of credit (L/Cs) failed to gain traction, L/Cs in financings with clear climate targets are gradually emerging.

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Lack of L/Cs forces Pakistan to delay national census

Pakistan has delayed its next population and housing census by four months because it has been unable to obtain in time the letters of credit (L/Cs) needed to procure the digital tablets it wants to use to collect and process information.

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Pakistan doubles L/C threshold to US$100,000 as imports contract, but hard currency remains scarce

Pakistan has eased its restrictions on letter of credit (L/C) openings by increasing the threshold from US$50,000 to US$100,000, apparently in response to a substantial contraction in the trade deficit.

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ICC Standards for Sustainable Trade and Sustainable Trade Finance

Roadmap and Vision for Industry, Policymakers, and Traders Worldwide' - to act as a first step in the complex journey of defining and setting implementable standards for sustainable trade and trade finance.

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SABB becomes first Saudi bank to exchange L/C, guarantee and commercial documents digitally

The Saudi British Bank (SABB) has launched a new digital trade solutions package aimed at enhancing letter of credit (L/C) and guarantee processing in international business transactions.

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Singapore court dismisses Unicredit's claims and upholds Glencore's right to payment under L/C

The Singapore High Court has upheld Switzerland-based resources giant Glencore's right to payment under a US$37 million letter of credit (L/C) provided by UniCredit to finance the purchase of high-sulphur fuel oil from collapsed Singaporean oil trader Hin Leong.

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Enigio builds on L/C offering with agreement to support electronic FIATA bill of lading

Enigio, a Swedish fintech employing blockchain to digitalise trade finance documents, says it has signed an agreement with the International Federation of Freight Forwarders Associations (FIATA), to add its trace:original offering to the solutions supporting the electronic FIATA bill of lading (eFBL) standard.

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Three convicted in New Jersey of US$1 million fraud that promised standby L/C

Two men from the US state of New Jersey and another from Nevada have been convicted by a federal jury for their roles in defrauding multiple victims out of money through a US$1 million "upfront-fee" scheme.

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Back-to-back and standby L/Cs used in sanctions evasion and money laundering says MENA financial crime guide

Back-to-back letters of credit (L/Cs) can be used as a sanctions evasion technique according to multiple sources who contributed to a new guide published by the Middle East and North Africa (MENA) chapter of the Global Coalition to Fight Financial Crime (GCFFC) and the MENA Financial Crime Compliance Group (MENA FCCG).

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Trade finance banks risk higher penalties under revised US antiboycott rules, L/Cs specifically contemplated

Trade finance banks operating in the US risk higher penalties under a policy issued by Washington aimed at strengthening and enhancing enforcement of the antiboycott rules administered by the US department of commerce. The rules prohibit US support for unsanctioned foreign boycotts against countries friendly to the US, notably - but not exclusively - the Arab League boycott of Israel.

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Ship recycling market hampered by L/C difficulties

The ship recycling market continues to be plagued by issues surrounding letters of credit (L/Cs) in South Asia and beyond according to a report in Hellenic Shipping News (HSN).

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US court sets new date for sentencing in US$20 million L/C fraud

A US court has set 28 October as the date for the sentencing of Ebony Mayfield, a co-conspirator in an alleged US$20 million letter of credit (L/C) fraud involving Allen Onyema, founder of the Nigerian airline, Air Peace.

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Decreased L/C default rate helps trade, supply chain and export finance credit risk back to pre-pandemic levels, ICC reports

Default rates for both export and import letters of credit (L/Cs) decreased in 2021 compared with 2020 according to a new report produced by the International Chamber of Commerce (ICC) in partnership with Global Credit Data (GCD) and Boston Consulting Group (BCG).

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Finastra and Contour announce strategic collaboration to improve digital L/C processing

Finastra has announced a strategic collaboration to integrate its Fusion Trade Innovation platform for internal banking processes with digital letter of credit (L/C) developer Contour with the aim of providing banks and corporates with streamlined end-to-end back-office workflow.

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Ethiopia bans import L/Cs for selected items

Commercial banks in Ethiopia have been ordered by the country's central bank not to approve letters of credit (L/Cs) for imports of 38 selected items as part of the government's efforts to shore up dwindling foreign reserves.

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India's DGFT releases stranded broken rice exports with valid L/Cs

India has released 397,267 tonnes of broken rice sold under letter of credit (L/C) terms that have been left stranded at ports since a sudden 8 September ban on exports of certain types of rice.

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Standard Bank responds to increased L/C demand in the African market

Post-pandemic economic headwinds, supply chain disruption and increased requirements to align with environmental, social and governance (ESG) considerations have prompted a recalibration in the perceived risks faced by trading counterparties according to Standard Bank.

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L/Cs, guarantees and SCF to "contribute disproportionately" to sustainable finance drive says McKinsey

Letters of credit (L/Cs), guarantees and supply chain finance (SCF), have the potential to contribute disproportionately to new volumes in sustainable finance according to research by McKinsey.

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AfDB to guarantee Nigeria's FSDH Merchant Bank's L/Cs and similar trade finance instruments

The African Development Bank Group (AfDB) has approved a US$15 million trade finance line of credit and US$10 million transaction guarantee for FSDH Merchant Bank in Nigeria.

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New report sheds more light on nearly US$1 billion diverted from South Sudan's L/C programme

Almost U$1 billion supplied to South Sudan through a credit line issued in US dollars in the form of letters of credit (L/Cs) from Qatar National Bank (QNB) and Kenya's Stanbic Holdings to support the country's efforts to import food, fuel, and medicine has gone missing, according to a new report.

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Latest award suggests growing industry recognition for Contour's digital L/C efforts

Contour, the blockchain-based trade platform focused on digitising letter of credit (L/C) processing, was won 'House Awards - Service Providers (Asia Pacific)' in the category of Digital Innovation (Southeast Asia) at the Corporate Treasurer Awards 2022.

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International banks agree to disclose steel-related loan emissions, but L/C reporting is voluntary

Six international banks - Citi, Crédit Agricole CIB, ING, Standard Chartered, Société Générale and UniCredit - have signed up to an agreement to measure and disclose their steel-related loan emissions via the Sustainable STEEL Principles (SSP), the first climate-aligned finance agreement for the steel industry.

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India's DGFT seeking L/C details for stranded rice exports

India's Directorate General of Foreign Trade (DGFT) is reportedly seeking details of stranded rice cargoes for which agreements and letters of credit L/Cs pre-date restrictions on rice exports.

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Pakistan's business leaders call for government action to end L/C delays

Despite Pakistan's measures to revive letter of credit (L/Cs) flows to rekindle manufacturing output, the country's business leaders say delays in L/Cs for imports of raw materials, machinery and equipment are still badly affecting production. They are calling for more government measures to facilitate L/C flows.

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US commerce department faces criticism over L/C guarantee demands

Republican lawmaker Andy Harris has sent a letter to US commerce secretary Gina Raimondo regarding the National Telecommunications and Information Administration's (NTIA's) requirements for its Infrastructure Investment and Jobs Act (IIJA) broadband programmes.

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J P Morgan - Cleareye.ai alliance to automate L/C document examination and complement UCP and ISBP rules

J P Morgan has entered into a global strategic alliance with California-based artificial intelligence (AI) and machine learning (ML) platform Cleareye.ai to digitise trade finance due diligence processing.

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RBI approves blockchain-based cross-border payment systems

India's central bank has approved a second cohort of neo-banking companies in its regulatory sandbox programme that have proposed blockchain-based cross-border payment systems that could be used as an alternative to letters of credit (L/Cs) by some Indian exporters.

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Keppel O&M entity wins interim injunction forbidding payment on US$126.6 million standby L/C

Keppel Corporation has been granted an interim injunction by the Singapore Court to restrain any payment or receipt of money under a US$126.6 million standby letter of credit (L/C) it had provided in favour of an unnamed customer in relation to an historical rig contract with its Keppel Offshore & Marine subsidiary.

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Pakistan eases restrictions for exporters opening L/Cs, continues to restrict non-essential imports

Pakistan's finance minister, Miftah Ismail, has said he is not in favour of further relaxing restrictions on import letters of credit (L/Cs) imposed with the aim of protecting the country's

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Contour acquires we.trade's assets to bring digital open account proposition alongside L/C offering

Contour, one of the world's largest blockchain trade finance networks, has announced that it is acquiring the rulebook and other associated legal documents from the we.trade Innovation DAC joint-venture company owned by 12 European banks.

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Arkansas internet service providers object to L/C guarantee demands

Internet service providers (ISPs) in Arkansas have expressed concerns over how the use of letters of credit (L/Cs) in newly revised grant funding requirements could hamper broadband internet expansion across the US state.

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L/C facilitates Reliance Industries' unexpected dramatic entrance in the wheat market

Best known for its activities in the energy, petrochemicals and textiles sectors, a subsidiary of Indian conglomerate Reliance Industries - the country's largest publicly traded company - has become India's second largest wheat exporter, despite a ban on wheat exports.

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Aquila acquires Cibar to extend its international trade finance reach

Canadian investment house Aquila has announced the acquisition of US-based software development company Cibar, which includes letter of credit (L/C) solutions amongst its portfolio of offerings for the international trade finance industry.

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Standby L/Cs preferred collateral choice for captive insurance companies

Standby letters of credit (L/Cs) are still the most popular collateral choice for captive insurance companies according to the senior vice president and manager of Comerica Bank's global and captive insurance group, Martin Ellis.

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Bolero and CHIMEI complete shipment under L/C terms in 3 days

Cloud-based trade finance digitisation solutions provider, Bolero International, and Taiwan-based performance materials producer, CHIMEI, have completed a shipment under letter of credit (L/C) terms with a short shipment duration of just a few days.

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Ecuador's state oil company tells Trafigura not to import Russian oil amidst sanction concerns and L/C difficulties

Ecuador's state oil company has told commodity trader Trafigura Group to avoid importing Russian fuels into the country amid concerns it may become further entangled in sanctions difficulties according to the Bloomberg news agency.

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Egypt to facilitate import L/Cs for raw materials and spare parts

Egypt's minister of trade and industry, Ahmed Samir, says his ministry is working to ease restrictions placed on letter of credit (L/C) issuance to the country's exporters.

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StanChart and ADM launch US$500 million sustainable export L/C programme

Multinational food processing and commodities trading corporation ADM and Standard Chartered have launched the bank's first green trade export letter of credit (L/C) programme in Singapore, London, and New York.

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Bank Muscat's new trade finance portal features L/C functionality

Bank Muscat has launched a new trade finance portal for corporate customers that includes capabilities for letter of credit (L/C) management and processing.

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L/Cs underpin revival of Saudi Arabia's commercial import financing to surpass pre-pandemic levels

Letters of credit (L/Cs) are underpinning a revival of Saudi Arabia's private sector import financing, which has now surpassed pre-pandemic levels, according to data released by the Saudi Arabian Monetary Authority (SAMA).

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L/C exposures in missing US$500 million of Chinese trader's copper

Switzerland-based traders Glencore and IXM have ceased supplying metals to China-based metals merchant Huludao Ruisheng after the disappearance of nearly US$500 million in copper, a report in the Financial Times (FT) has revealed.

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Complex set of L/Cs and guarantees feature in largest infrastructure PPP in Latin America

A syndicate of ten commercial banks and development agencies has secured financing for the US$3 billion São Paulo Metro Line 6 project in Brazil.

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EU announces exception to Russian oil import ban, L/C issuers take note

The European Commission (EC) has issued a notice providing an exception to its initial total ban on imports into the European Union (EU) of Russian oil mixed with oil of other origin.

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Honda and Kia join Toyota and Suzuki in production cuts due to forex, L/C and raw material shortages in Pakistan

Honda and Kia are joining Toyota and Suzuki in partially shutting down vehicle assembly operations in Pakistan due to computer chip and other raw material shortages, supply chain disruption, exchange rate volatility and curbs on the letters of credit (L/Cs) they need to import materials (DC World News, 1 August 2022).

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Deutsche Bank partners with Traydstream to automate document checking

Deutsche Bank has partnered with London-based fintech Traydstream to automate document checking for the bank's trade finance products.

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Sight L/Cs could help boost trade between developed and emerging markets

Commercial letters of credit (L/Cs) payable at sight could help boost trade between sellers in developed markets and buyers in emerging markets according to vice president, trade & working capital sales, EMEA at J P Morgan.

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Infosys subsidiary and six banks to pilot India's blockchain-based trade finance solution

A subsidiary of Bangalore-headquartered multinational information technology giant, Infosys, is to work with six banks to pilot India's International Financial Services Centres Authority's (IFSCA's) blockchain-based trade finance solution.

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AfDB and TBD risk participation agreement expected to boost L/C flows in eastern and southern Africa

The African Development Bank Group (AfDB) has approved a US$175 million trade finance funded risk participation agreement (RPA) facility with the Trade & Development Bank (TDB), the trade and development financial institution operating in eastern and southern Africa.

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Forex, L/C and raw material shortages trigger partial shut down of Toyota and Suzuki assembly lines in Pakistan

Toyota and Suzuki are to partially shut down vehicle assembly operations in Pakistan this month due to raw material shortages, exchange rate volatility and curbs on the letters of credit (L/Cs) they need to import materials according to the Reuters news agency.

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Economic conditions and foreign currency shortages impacting on L/C business

Less developed and lower middle income countries across the world are reporting disruptions in letter of credit (L/C) flows as they struggle to cope with tough economic conditions and foreign currency shortages.

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Sberbank added to EU sanctions list

Sberbank, a major player in Russia's letter of credit (L/C) market is amongst 10 new Russian entities now on the EU's sanctions list which also features 54 more individuals.

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Banks and the Mehta family in fresh legal moves over alleged US$1 billion Winsome Diamonds fraud

The high court in London has issued a US$1 billion worldwide asset freezing order against Jatin Mehta, his wife Sonia, their sons Vishal and Suraj, along with a business associate Haytham Obidah.

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Bangladeshi banks reluctant to open L/Cs for Russian grain suppliers

Talks in progress for the supply of Russian grain to Bangladesh are being held up by the reluctance of Bangladeshi banks to open letters of credit (L/Cs) in favour of Russian suppliers, according to Russia's ambassador to Bangladesh, Ekaterina Semenova.

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L/C service and innovation helps banks and fintechs win GTR Leaders in Trade awards

Several winners of the recently announced 2021 Global Trade Review (GTR) Leaders in Trade awards are credited for their achievements in the provision of letter of credit (L/C) services.

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Bangladesh introduces measures to improve L/C availability

Bangladesh Bank (BB) has said it will increase the supply of US dollars in the country's foreign exchange market by freeing up funds currently reserved to settle back-to-back letter of credit (L/C) liabilities.

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US urges banks writing L/C business to be vigilant against evasion of sanctions imposed on Russia and Belarus

Banks providing or handling payments supported by letters of credit (L/Cs) are amongst financial institutions that the US' Financial Crimes Enforcement Network (FinCEN) and the US department of commerce's Bureau of Industry and Security (BIS) are urging to be vigilant against efforts by individuals or entities to evade national export controls implemented in connection with Russia and Belarus.

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Pan-African Ecobank reports surge in L/C business

Pan-African conglomerate Ecobank is reporting a significant increase in the value of letter of credit (L/C) business it is writing as it focuses on what its CEO describes as the group's "intent to be the preferred trade bank for sub-Saharan Africa".

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Russian oil for China and coal for India bypassing L/C-limiting restrictions

China and India, two of Russia's major export markets, are managing to construct trade deals that enable their importers to continue taking delivery of Russian fuel that before Moscow's invasion of Ukraine would have been paid for using dollar denominated letters of credit (L/Cs).

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L/Cs included in enhanced credit management strategies to mitigate against surging inflation

Businesses in the US, Mexico and Canada are including letters of credit (L/Cs) in enhanced credit management strategies designed to mitigate the impact of the alarming surge of inflation on businesses, and the consequent need to take measures to protect their profitability and viability according to global credit insurer Atradius.

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Egypt's controversial import L/C requirement stifling access to key goods

Egypt's new rules requiring importers to use letters of credit (L/Cs) are stifling access to essential imports for the country's own agricultural, industrial and health sectors according to a report in the Mada Masra independent Egyptian online newspaper.

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WiseTech buys Bolero to progress trade digitisation and extend global reach

Bolero International, probably the most established of global trade finance digitisation providers, has been acquired by WiseTech Global, developer of the widely used cloud-based logistics management platform, CargoWise.

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Fintech's security deposit alternative now backed by Wells Fargo L/C

Fintech Obligo has said it is now using letters of credit (L/Cs) from banking giant Wells Fargo to back its security deposit alternative for landlords and tenants.

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Sri Lanka looks to Russia for fuel as L/Cs for imports dry up

In the face of difficulties obtaining letters of credit (L/Cs) for most fuel imports, Sri Lanka is running the risk of breaching international sanctions by looking to Russia in its efforts to secure fuel supplies.

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India working on blockchain-based system to eliminate falsified L/Cs and other trade documents

The Reserve Bank of India (RBI) is working with several banks and technology firms on a blockchain-based pilot project to tackle trade-based financial crime, with an emphasis on identifying falsified documents such as letters of credit (L/Cs) according to a report in the Economic Times.

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Banca Generali obtains court order to see L/Cs and other documents underlying securitisations

A private Italian bank has succeeded in obtaining a London court order that will allow it to see documents, including letters of credit (L/Cs), underlying EUR 344 million (US$362 million) of securitisations it sold to its clients.

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Investor-owned local bank in Vermont set to open, L/Cs included in commercial offerings

A proposed new, investor-owned commercial bank in the US state of Vermont has moved a step closer to opening by raising a total of US$33 million in start-up capital.

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Green financing framework to provide L/Cs and guarantees for Spanish solar developer

Independent renewable power producer Opdenergy Holding has secured EUR 50 million (US$52.6 million) in debt financing to back the development of solar projects in the US, Spain and elsewhere.

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TBML relies on lack of L/C understanding says LexisNexis

Trade-based money laundering (TBML) relies on lack understanding by financial institutions about letter of credit (L/C) documents or how inspection reports are produced according to the latest LexisNexis True Cost of Compliance Study - Asia-Pacific Edition.

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Blockchain fintech we.trade files for insolvency

Blockchain fintech we.trade, which marketed a bank payment undertaking (BPU) product as an alternative to a letter of credit (L/C), is winding up its operations and has proposed PwC as its liquidator according to the Irish Independent daily newspaper.

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ICIEC signs L/C insurance agreements with Saudi Eximbank and UAE-headquartered Tabarak

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Saudi Export Import Bank (Saudi Eximbank) have signed reinsurance agreements to help facilitate trade finance flows into and out of the kingdom. The agreements see ICIEC provide reinsurance to Saudi Eximbank's cover of confirmed letters of credit (L/Cs).

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Pakistan joins list of South Asian countries experiencing L/C difficulties

Pakistan has joined the apparently increasing number of South Asian countries tasked with coping with difficult economic conditions where letters of credit (L/Cs) are becoming harder to come by.

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Building material suppliers in Qatar should consider L/Cs and bank guarantees to counter increased non-payment risks

Building material suppliers in Qatar should consider using letters of credit (L/Cs) or bank guarantees amongst other options to guarantee payment according to lawyers at global law firm Clyde & Co.

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India mulls revision to export subsidies to increase L/C availability

India's government is planning to pass on the subsidies it currently provides to Indian micro-, small- and medium-sized enterprises (MSMEs) exporting to developing countries to those countries.

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Manhattan man pleads guilty to US$3 million fraud scheme featuring fictional L/Cs

A Manhattan man has pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud victims by telling them that they could obtain large loans or letters of credit (L/Cs) if they provided up-front investments, which he sometimes described as "seed capital", as collateral.

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Indian bankers and exporters involved in fraudulent L/Cs for wheat exports face legal action

India's Directorate General of Foreign Trade (DGFT) says some exporters are illegally obtaining registration certificates for wheat exports under letter of credit (L/C) terms using "improper documents" in attempts to bypass new legislation.

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Bernie Ecclestone's L/C guarantee features in one of Britain's biggest money laundering prosecutions

Former Formula One chief Bernie Ecclestone was asked by his ex-son-in-law James Stunt to provide a US$10 million guarantee for a letter of credit (L/C) to back a gold bullion business venture "that made no commercial sense", a court has heard.

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Surecomp launches Rivo to connect digital trade finance systems

Digital trade finance solutions provider Surecomp has launched a new collaborative trade finance platform called Rivo. It aims to overcome challenges of interoperability amongst digital platforms and bring together an ecosystem of corporates, financial institutions and fintechs.

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Contour's L/C solution to connect with TradeLens' eBL

Digital trade finance network Contour has reached an agreement to connect its letter of credit (L/C) solution with the TradeLens blockchain-based supply chain platform that enables the secure and transparent transfer of electronic bills of lading (eBLs).

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Partial U-turn on Egypt's new L/C rules

Raw materials and factors of production imported from abroad have been exempted by presidential order from new rules that require most Egyptian importers to use letters of credit (L/Cs), just weeks after the Central Bank of Egypt (CBE) introduced the rules.

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L/Cs increasingly restricted in South Asia's smaller economies

Letters of credit (L/Cs) are becoming harder to come by in South Asia's smaller economies as they seek to cope with difficult economic conditions.

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UBI launches 'Trade nxt' digital platform with L/C functionality for Indian traders

One of India's largest government-owned banks has launched an online platform for providing comprehensive cross-border trade finance services to Indian exporters and importers.

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India's ban on wheat exports excepts shipments with L/Cs already issued

India has banned exports of wheat due to soaring global prices largely precipitated by lack of supply from warring Ukraine and Russia, which together normally account for nearly one-third of global wheat exports.

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Aeroflot board statement on new capital issue and L/C debt restructuring

As part of measures aimed at improving the financial stability of beleaguered Russian airline Aeroflot and its debt restructuring under letters of credit (L/Cs), its board of directors has

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Former China Development Bank executive who violated L/C and guarantee rules faces bribery and corruption charges

The former deputy head of China Development Bank (CDB) has been charged for taking bribes, issuing illegal loans and concealing offshore deposits, the official Xinhua news agency has said.

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Another aircraft lessor claims against Unicredit to enforce L/Cs related to aircraft seized by Moscow

Two Irish units of aircraft lessor Aircastle have launched a near US$25 million claim against Unicredit in London to enforce letters of credit (L/Cs) related to aircraft seized by the Russian government, the Irish Independent newspaper has reported.

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GSBN completes proofs-of-concepts for blockchain-enabled L/Cs and open account transactions

The Trade Finance Advisory Group at Global Shipping Business Network (GSBN) has developed its first blockchain-enabled proofs-of-concepts for two trade finance products, letters of credit (L/Cs) and open account.

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Innovative renewable financing bundles L/C and equipment financing

Origis Energy, a US-based renewable energy platform, has announced the close of a US$375 million credit facility for its solar and energy storage development project pipeline.

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Sri Lankan importers must buy on L/C, D/P or D/A terms as central bank bans open account import transactions

Importers in Sri Lanka will only be allowed to finance purchases on letter of credit (L/C), documents against payment (D/P) or documents against acceptance (D/A) terms according to the island state's central bank governor, Nandalal Weerasing.

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Additional L/C clauses advised for banks financing East Asian oil and petroleum trades

Financial institutions should write additional clauses in letters of credit (L/Cs) issued for oil and petroleum transactions in areas of East Asia to help prevent North Korea taking delivery of shipments in contravention of an embargo meant to limit the country's imports according to the UN Panel of Experts monitoring global compliance with sanctions imposed on Pyongyang.

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SBLC-backed issue for Sino-Ocean may set precedent for other Chinese homebuilders

Chinese real estate developer Sino-Ocean has raised US$200 million from a three-year bond backed by a standby letter of credit (SBLC).

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Afreximbank reports significant growth in L/C and guarantee business and income in 2021 results

Significant growth in letters of credit (L/Cs) and guarantees helped the African Export-Import Bank (Afreximbank) group demonstrate strong and resilient growth last year, notwithstanding the negative impacts of the Covid pandemic, according to the bank's 2021 annual consolidated financial statements.

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Aercap pursues legal claim against Unicredit for rejecting L/C payment on failed Russian leases

Aercap is pursuing a US$45.8 million claim against Unicredit after the Italian bank rejected the world's biggest aircraft lessor's payment requests in respect of certain letters of credit (L/Cs) related to failed lease agreements with lessees in Russia.

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L/C examination reveals phantom shipment scam

An examination of letters of credit (L/Cs) in Bangladesh has revealed a multi-million dollar export incentive scam involving phantom shipments, in which agricultural and food products appeared to have been sold abroad, but no goods actually left the country.

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Sri Lanka finds ways to import oil without L/Cs

Sri Lanka has been importing oil for several months without letters of credit (L/Cs) after banks stopped providing them last year according to the chairman of state-run Ceylon Petroleum Corporation (CPC).

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Domestic and foreign banks withdraw L/C support for major Russian-backed Indian refinery

India's HDFC Bank and at least four foreign banks have stopped opening and confirming letters of credit (L/Cs) for oil imports to Nayara Energy, the Russian-backed owner-operator of India's second largest single-site refinery, Reuters has reported.

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US EXIM approves support for Iraqi L/Cs, moves Russia off-cover

The US Export-Import Bank (EXIM) board of directors has approved a US$300 million package of support for letters of credit (L/Cs) issued by Iraq.

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Nepal orders banks not to issue L/Cs for vehicles and non-essentials

Nepal's central bank has ordered the country's commercial banks not to issue new letters of credit (L/Cs) for the importation of vehicles and other non-essential goods as part of its efforts to preserve dwindling foreign exchange reserves.

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Pakistan's central bank eases rules on L/Cs for refineries

Pakistan's central bank has responded to pressure from operators of the country's refineries to increase credit limits required to open letters of credit (L/Cs).

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AfDB approves first ever transaction guarantee facility for L/C non-payment risks

The African Development Bank (AfDB) has approved the first ever facility under its new transaction guarantee instrument, which was formally launched in July 2021.

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European banks increasing L/C support for commodity trades says Fitch

European banks appear to be increasing lending, including via letter of credit (L/C) support, to commodity trading firms which are facing unprecedented liquidity needs due to extreme price volatility, Fitch Ratings says.

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Conflict in Ukraine restricting L/C flows but Indian banks opening for business

Letter of credit (L/C) flows are facing increasing restrictions as a result of international sanctions imposed on Russia as well as self-imposed measures taken by banks for fear that future sanctions could be enacted without warning.

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India and China mull own currency options for Russian and Saudi oil to overcome L/C obstacles

India and China are both reportedly in discussions about paying in their own currency for oil now that sanctions imposed on Moscow, the bar on several Russian banks from the SWIFT messaging platform and self-imposed restrictions introduced by many banks have stemmed conventional flows of US dollar letter of credit (L/C) transactions (DC World News, 4 March 2022).

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Ecuador's state oil company finds alternative to sanctioned L/C deals for Russian fuel

Ecuador's state oil company has lifted a force majeure it declared over two Russia-origin cargoes of diesel after it could not obtain a letter of credit (L/C) from Banco Central del Ecuador (Central Bank of Ecuador - BCE).

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IFC boost for Pakistan's Bank Al Habib's import L/C business

The International Finance Corporation (IFC) is partnering with Bank Al Habib to support letters of credit (L/Cs) for the import of essential goods and equipment into Pakistan and foster a sustainable recovery from the Covid 19 pandemic.

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Sanctions advisories for the maritime industry

Practical challenges and recommendations for financial

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Businesses dealing with non-sanctioned Russian entities should beware of L/C perils says lawyer

Non-Russian companies dealing with non-sanctioned Russian entities face stark challenges if they want to continue doing business while at the same time complying with the increasing number of sanctions imposed on Moscow after its forces invaded Ukraine says the managing partner of a Washington-based law firm.

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EU lessors of planes to Russian airlines with L/Cs and cash deposits face massive write offs

Aircraft lessors holding letters of credit (L/Cs) and non-refundable cash deposits may have to write off billions of euro of airplanes leased to Russian airlines, persons and entities, and possibly leases to others where the aircraft is operated in Russia as a result of new EU sanctions and retaliatory measures introduced by Moscow.

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L/C difficulties amongst obstacles hindering Indian interests in Russian oil

India's Oil and Natural Gas Corporation (ONGC) has reportedly failed to find buyers in its tender to sell a cargo of Russian crude, just days after the state-owned oil giant said it did not foresee any challenge in selling its share of crude from Russian oilfields or repatriating dividends from there.

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First sustainable L/C for HSBC Philippines

HSBC Philippines has extended its first sustainable commercial letter of credit (L/C) to AC Energy Corp.

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ICC Standards for Sustainable Trade and Sustainable Trade Finance

Roadmap and Vision for Industry, Policymakers, and Traders Worldwide' - to act as a first step in the complex journey of defining and setting implementable standards for sustainable trade and trade finance.

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Impact of Russia's exclusion from Swift widens as oil and gas traders seek L/C alternatives

The rapid shutdown of Russian banking around the world and the exclusion of Russia from the Swift electronic payment system in the international response to the Russian invasion of Ukraine, has severely curtailed letter of credit (L/C) business in several areas.

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Russian deputy prime minister says L/C starvation is hurting oil sales

Russia's deputy prime minister, Alexander Novak, has recognised that difficulties obtaining letters of credit (L/Cs) is hurting Russia's substantial exports of crude oil and derivative products.

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Eight L/Cs devolved in quick succession raised fraud concerns at Bank of Baroda

Sudden devolvement of letters of credit (L/Cs) raised suspicions of fraud at Arihant Coal Sales, which India's Central Bureau of Investigation (CBI) has charged along with its senior management for allegedly cheating the Bank of Baroda (BoB) of the equivalent of US$14.7 million.

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India mulls L/C guarantees and more rupee-rouble transactions for trade with Russia

India threatens to compromise efforts to isolate Russia from the global financial system to maintain its strategically significant trading ties with Moscow.

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Banks close doors on L/Cs for Russia for fear of evolving sanctions

Banks have been shutting the doors on those asking for letters of credit (L/Cs) for trade with Russia in the wake of a bewildering array of sanctions imposed on the country since Moscow commenced its military action in Ukraine.

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EU expected to ban seven Russian banks from Swift but spare Sperbank and Gazprombank for now

Major Russian banks Sberbank and Gazprombank look set to escape being cut off from the Swift messaging network under proposals being discussed by EU member states that are likely to ban seven Russian banks from the global messaging system over which letter of credit (L/C), guarantees and other transactions are routinely managed (DC World News, 28 February 2022).

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Swift will comply with applicable sanctions following western allies' commitment to bar selected Russian banks

Swift says it will comply with applicable sanctions laws issued following the commitment by the European Commission, France, Germany, Italy, the UK, Canada to remove selected Russian banks from the global messaging system over which letter of credit (L/C), guarantees and other transactions are routinely managed (DC World News, 28 February 2022).

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Western allies' commitment to remove selected Russian banks from Swift raises many questions

Selected Russian banks are to be removed from the Swift messaging system according to joint statement issued on 26 February by the European Commission, France, Germany, Italy, the UK, Canada, and the US in response to Russia's military action in Ukraine.

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Surecomp partners with Enigio for sustainable and cost-efficient digitisation of L/Cs and other trade documents

Trade finance software and solutions provider Surecomp has announced that it is partnering with Enigio, a Stockholm-based provider of digital original documents.

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Egypt set to introduce controversial L/C requirement for importers

Egypt is set to impose new rules requiring importers to use letters of credit (L/Cs) in March, despite fierce opposition from businesses.

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Trade Technologies announces record volumes of L/C, documentary collection and open account transactions on TradeSharp

International trade document solutions provider Trade Technologies has announced that during 2021 it completed a record number and US dollar value of transactions on its TradeSharp platform.

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Syngenta and HSBC complete paperless L/C transaction on the TradeLens platform

TradeLens, a digital platform launched by IBM and A P Moller-Maersk, has announced the successful completion of what it describes as an innovative letter of credit (L/C) transacted with HSBC and agrichemical giant Syngenta.

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L/Cs' potential role in India's biggest fraud

Fraudulent letters of credit (L/Cs) may feature in the prosecution of ABG Shipyard and its promoters after India's Central Bureau of Investigation (CBI) accused them of defrauding State Bank of India (SBI) and other members of a 28 bank consortium of 228.42 billion Indian rupees (US$3.03 billion).

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International lawyers analyse Zenrock fraud court ruling related to L/Cs, LOIs, fraud exception and round tripping

International lawyers Reed Smith have published a detailed analysis of the recent decision by the Singapore International Commercial Court (SICC) to dismiss a claim by Crédit Agricole that PPT Energy Trading was a participant in a fraud perpetrated by collapsed Zenrock Commodities and therefore was not entitled to receive US$23.6 million under the bank's letter of credit (L/C).

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Trade Technologies brings digital L/C solutions to Dubai

International trade document solutions provider, Trade Technologies, has announced the opening of its new office in Dubai, its seventeenth office worldwide.

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Sberbank launches digital L/C service to facilitate real estate settlements

Russia's Sberbank has introduced a new digital service to streamline letter of credit (L/C) settlements in real estate transactions.

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Innovative L/C business helps banks win Global Finance awards

Innovative letter of credit (L/C) business has helped several banks to win awards in Global Finance magazine's latest list of the world's best trade finance providers.

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L/Cs help Ukraine's Megabank to a fivefold increase in its credit portfolio

Letters of credit (L/Cs) form part of the offering that has helped one of Ukraine's largest banks to a fivefold increase in its credit portfolio in 2021.

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Tunisia to review foreign exchange law to make L/Cs more accessible

Tunisia is mulling ways to make letters of credit (L/Cs) more accessible by reviewing its foreign exchange law.

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EBRD trials digital L/Cs on Contour platform, working with ICC on digital trade legal frameworks

The European Bank for Reconstruction and Development (EBRD) is accelerating its support for the digital transition of trade finance and has facilitated three test letters of credit (L/Cs) on the Contour digital trade finance network.

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Digital trade finance platform to help L/C management raises US$1.5 million seed capital

Digital trade finance platform 360tf, which connects banks and businesses across the world to help them manage their letter of credit (L/C) financing requirements, has raised US$1.5 million within five months of going live.

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Sri Lankan exporters exploit central bank loophole by resorting to imports to obtain L/Cs

Sri Lankan exporters have started new import businesses so that they can retain the hard currency they need to obtain letters of credit (L/Cs) and circumvent Central Bank of Sri Lanka regulations aimed at alleviating the country's dire foreign exchange crisis.

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Indian businessman used L/Cs to defraud nearly US$250 million in international tripartite agreement

India's Enforcement Directorate (ED) has arrested the director of Hong Kong based Hoewelai Jinsu, Anup Nagaral in connection with a case of alleged fraud that cost lenders nearly US$250 million after they extended credit to the fraudsters.

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Digitally initiated L/Cs credited for helping Citi win best trade finance bank in Asia Pacific

Citi has been named Best Trade Finance Bank in Asia Pacific by Global Finance magazine in its list of Best Trade Finance Providers 2022.

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TradeFlow and Baltic Exchange successfully pilot escrow transaction aimed at SMEs that find L/Cs hard to access

Fintech-enabled fund manager TradeFlow Capital Management has partnered with global freight market information and other maritime services provider, Baltic Exchange, to successfully execute a pilot escrow transaction as part of a commodity trade executed through TradeFlow.

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L/C shortages threaten supplies of essential drugs and fuel to Sri Lanka

Shortages of letters of credit (L/Cs) are threatening supplies of essential drugs and fuel to Sri Lanka as the island state grapples with severe foreign exchange and debt crises.

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First blockchain transaction with L/C processing on new Indian state-backed SLDE platform

India's Axis Bank says it has executed an industry-first blockchain enabled trade transaction involving letter of credit (L/C) processing on a domestic blockchain platform backed by the country's government.

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Indian banks cautious on Sri Lankan L/C exposures

Banks in India are making letters of credit (L/Cs) harder to come by for Indian exporters selling goods to Sri Lanka as the island nation struggles with a severe foreign exchange and debt crisis according to a report in The Economic Times.

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Consequences for L/Cs of Indonesia's coal export ban

The likely consequences of Indonesia's coal export ban to letters of credit (L/Cs), sales contracts, charterparties and bills of lading are outlined in a bulletin published by international lawyers Stephenson Harwood.

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Philadelphia working to provide L/C support to support hard-to-lend-to businesses

A Philadelphia city council member is working towards establishing a public bank in the city that could issue letters of credit (L/Cs) to guarantee loans for hard-to-lend-to businesses and organisations.

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CaixaBank captures 30 per cent of L/C and guarantee business between Spain and Southeast and Central Asia

Spain's CaixaBank says it has captured market shares above 30 per cent in import and export documentary letters of credit (L/Cs) and in guarantees used for business transactions between Spain and the Southeast and Central Asia region.

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UK government support for L/Cs helped firms meet Covid-19 challenges

The UK's export credit agency says its support for businesses reliant on letters of credit (L/Cs) to finance their operations has helped firms meet the challenges of the Covid-19 pandemic.

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BNA steps in with L/Cs to release stranded grain cargoes

Tunisia's Banque Nationale Agricole (BNA) has reportedly opened letters of credit (L/Cs) for the country's state-owned grain importer, Office des Cereales (ODC), to release cargoes of grain stranded offshore the commercial port of Sfax.

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China's central bank forbids L/Cs for Baltic ports in dispute with Lithuania

China is reportedly forbidding banks from issuing letters of credit (L/Cs) for shipments in and out of Baltic ports amidst growing tensions between Lithuania and China.

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First fully algorithmically-driven London insurance syndicate enters into US$130 million sustainability-linked L/C agreement

Algorithmic insurance syndicate Ki has entered into a US$130 million sustainability-linked letter of credit (L/C) agreement with three banks to support its growth.

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Trade flows backed by L/Cs more resilient than those backed by other instruments in Covid-19 pandemic

Trade flows backed by letters of credit (L/Cs) were more resilient than flows backed by other instruments at the height of the Covid-19 pandemic in 2020 according to a paper written by researchers at the London-based Centre for Economic Policy Research (CEPR), an independent, non-profit organisation that takes no institutional policy positions.

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China's US$10 billion for African trade finance likely to precipitate increase in L/C business

China has pledged US$10 billion in trade finance over the next three years in a new trade promotion programme to support African exports, a move that is likely to precipitate an increase in letter of credit (L/C) transactions.

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Contour partners with TIS to enable digital L/C processing in Japan

Digital trade finance network Contour has partnered with Japanese ICT solutions business TIS INTEC to enable digital processing of letters of credit (L/Cs) in Japan.

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Sri Lanka prepares to settle fertiliser dispute with China

The government of Sri Lanka appears to have buckled to geopolitical pressure and the threat of a substantial lawsuit by saying it is now prepared to pay the Chinese company that shipped fertiliser found to be contaminated.

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MUFG to act as L/C issuing bank in world's largest offshore wind farm

MUFG is to act as letter of credit (L/C) issuing bank in the third phase of what will be the world's largest offshore wind farm when it is completed in March 2026.

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US garment wholesaler used L/Cs in scheme to undervalue garments and avoid paying millions of dollars in duties

The owner of a garment wholesaling company in Los Angeles who used letters of credit (L/Cs) in a scheme to undervalue imported garments and avoid paying millions of dollars in duties to the US has been sentenced to 12 months and one day in federal prison

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OFAC imposes restrictions on L/Cs for Belarus sovereign debt

The US treasury's Office of Foreign Assets Control (OFAC) on 2 December issued several new actions to increase sanctions pressure on the government of Belarus, including the imposition of restrictions on dealings in new issuances of Belarusian sovereign debt in both primary and secondary markets.

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Former PBSL manager analyses the Sri Lankan bank's blacklisting by China for withholding L/C payment

A former assistant manager at the People's Bank of Sri Lanka (PBSL) has provided a comprehensive analysis of the challenges faced by the bank as it withholds payment under a letter of credit (L/C) issued for a cargo of Chinese fertiliser.

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Slump in AIS data sparks concerns for import and export L/Cs for China

Banks writing letter of credit (L/C) business for export and import transactions with China that use publicly available Automatic Identification System (AIS) tracking signals to obtain data on vessel location and identity may be experiencing difficulties due to a significant reduction in vessel tracking information from China.

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Alleged Kolkota-based L/C fraudsters' assets attached

India's Enforcement Directorate has attached assets worth US$6.4 million belonging to company directors accused of fraudulently using letters of credit (L/Cs) to obtain loans.

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L/Cs feature alongside value-added services in India's ICICI Bank's new online platform

Online letters of credit (L/Cs) are amongst the range of banking services available to Indian exporters and importers on a new online platform launched by India's ICICI Bank.

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Standby L/Cs prominent in AIG's US$4.5 billion credit agreement

Multinational finance and insurance corporation American International Group (AIG) has entered into a credit agreement that provides for a five-year total commitment of US$4.5 billion.

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Sri Lankan court extends prevention of L/C payment as fertiliser dispute with China rumbles on

A court in Sri Lanka has extended an interim order preventing the People's Bank of Sri Lanka (PBSL) from making a US$4.9 million payment under a letter of credit (L/C) for a cargo of organic fertiliser from Chinese exporter, Qingdao Seawin Biotech (QSB).

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Afreximbank doubles intra-African trade financing and expands L/C support

African Export-Import Bank (Afreximbank) is ready to disburse US$40 billion to support intra-African trade over the next five years, according to the bank's president and chairman, Benedict Oramah.

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Saudi Eximbank continues work to improve L/C access to boost exports

Saudi Export Import Bank (Saudi Eximbank) is continuing to reach agreements designed make letters of credit (L/Cs) more available to Saudi exporters and their trading partners.

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Tradeteq Connect announces new trade risk distribution channel for Commerzbank, AKA and Texel

London-based Tradeteq, which provides technology for bank asset distribution, has announced an expansion of its existing platform to support the distribution of bank risk resulting from trade products such as letters of credit (L/Cs) and guarantees.

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Bank of Communications accuses Sinopec of fraud involving L/C misuse

China's Bank of Communications (BoC) has accused Chinese state-owned oil giant Sinopec of fraud in a legal row centred on the alleged misuse of four letters of credit (L/Cs) extended in 2019.

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Mining and metals blockchain platform Minehub launches trade finance application

MineHub Technologies says it has launched a trade finance network application, the first in a series of network applications the blockchain platform hopes to launch in the coming months.

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Stern warnings on standby L/Cs in Swiss banks' response to 2020s commodity trade finance scandals

Stern warnings on issuing standby letters of credit (L/Cs) and even sterner warnings on the usage of non-documentary standby L/Cs are included in a summary of recommended best practices for commodity trade finance (CTF) published in response to the slew of huge trade finance scandals in 2020.

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BGFI's standby L/C for solar plants confirms its commitment to Cameroon's energy and mining transformation

BGFI Bank Cameroun has become one of the latest banks to underline its green credentials by providing a standby letter of credit (L/C) to guarantee the installation of two modular solar power plants in Maroua and Guider to improve electricity supply in Cameroon's northern regions.

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Standard Chartered executes first sustainable trade finance deal in Bangladesh on L/C terms

Standard Chartered Bangladesh says it has executed the country's first sustainable trade finance transaction.

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Sberbank targets Russian estate agents, service providers and traders in domestic L/C agent programme

Russia's Sberbank has launched an agent programme to make letters of credit (L/Cs) more available for a variety of uses not connected with international trade.

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Chinese embassy blacklists Sri Lankan bank in escalating blocked L/C dispute

The economic and commercial office of the Chinese Embassy in Sri Lanka has blacklisted People's Bank of Sri Lanka (PBSL) over its failure to make a US$4.9 million payment under a letter of credit (L/C) to Qingdao Seawin Biotech (QSB).

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Controversial US power producer announces green L/C facility

A controversial US independent power producer has announced it has closed on a zero-carbon letter of credit (L/C) facility in its attempts to restore its fortunes after its forerunner filed for bankruptcy amidst what has become known as the Ohio nuclear bribery scandal.

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Sri Lanka blocks L/C to prevent import of contaminated Chinese fertiliser

A Sri Lankan state-owned company has blocked a US$4.9 million payment under a letter of credit (L/C) to a Chinese company to prevent the unloading of a cargo of fertiliser believed to be contaminated by harmful bacteria.

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Saudi Eximbank agreements aim to improve L/C access to boost exports and facilitate imports

Saudi Export Import Bank (Saudi Eximbank) has signed two agreements recently to improve letter of credit (L/C) access to boost Saudi exports, particularly of non-oil products.

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Commercial L/Cs set to lead trade finance market growth to US$90 billion by 2030 says Allied Market Research

Commercial letters of credit (L/Cs) are expected to lead growth in the global trade finance market over the next decade according to forecasts prepared by Allied Market Research (AMR).

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Indian authorities attach assets worth US$22 million in L/C fraud case

India's Enforcement Directorate (ED) says it has attached assets worth the equivalent of US$22 million in a fraud case involving letters of credit (L/Cs) that were devolved despite an agreement that they would not be.

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PetroEcuador offers L/C alternative to compensate for banks' growing climate consciousness

Ecuador's national oil company has modified the terms and conditions for buyers of hydrocarbons to provide them with ways to overcome the growing difficulties of securing letters of credit (L/Cs) from increasingly climate conscious banks.

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Retrenching private sector and pandemic open trade finance gap to all-time high

The global trade finance gap grew to an all-time high of US$1.7 trillion in 2020, a 15 per cent increase from two years earlier, as the private sector retrenched and the pandemic heightened economic and financial uncertainties and devastated global trade, according to the latest Trade Finance Gaps, Growth and Jobs Survey released by the Asian Development Bank (ADB).

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BAZ commits to making L/Cs easier to obtain for Zimbabwean businesses

The Bankers Association of Zimbabwe (BAZ) has committed to improve access to letters of credit (L/Cs) as one of a range of agreements reached by the Reserve Bank of Zimbabwe (RBZ - central bank) Zimbabwean and business leaders to deal with apparently unjustified jumps in black-market exchange rates by improving the effectiveness of the formal banking and business sectors.

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L/C trail leads to Rio Tinto according to Pandora Papers

Letters of credit (L/Cs) from the Pandora Papers leak reportedly show how Rio Tinto continued to trade with Chinese steel billionaire Du Shuanghua, even after he confessed to paying bribes to one of three executives at the mining giant who were subsequently jailed for between seven and 14 years, according to Australia's ABC Investigations.

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Vietnam warns buyers of Saudi rail-tracks about standby L/C deals

The Vietnam Trade Office in Saudi Arabia has warned Vietnamese buyers of rail tracks from the Gulf state that unscrupulous sellers are failing to confirm standby letters of credit (L/Cs) in deals for used rail tracks.

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Former bank manager amongst four jailed in Indian L/C fraud

A special court in the Indian state of Maharashtra has sentenced four people to jail in a US$45 million scam that employed 246 fraudulent bills submitted by Bank of India against letters of credit (L/Cs) issued by Canara Bank.

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iGBT awarded SWIFT Compatible Application Trade Finance Label for 2021

Intellect Global Transaction Banking (iGTB), the transaction banking arm of Indian fintech Intellect Design Arena, has announced its Intellect Trade Finance application has been awarded the SWIFT Compatible Application Trade Finance Label for 2021.

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Pakistan imposes 100 per cent cash margin on import L/Cs for an additional 114 items

The State Bank of Pakistan (SBP) imposed on 30 September a 100 per cent cash margin requirement on import letters of credit (L/Cs) for an additional 114 items.

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Former SBAC Bank chairman accused of ignoring L/C regulations

The former chairman of South Bangla Agriculture and Commerce (SBAC) Bank, Amzad Hossain, has been accused of ignoring letter of credit (L/Cs) regulations amongst several irregularities at the bank according to local media.

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Green L/Cs a step closer for Standard Chartered

Green letters of credit (L/Cs) appear a step closer for Standard Chartered with the successful execution of its first green trade finance facility for Amplus Energy Solutions FZE (Amplus ES) to support its solar generation business.

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Digital L/Cs included in Sharjah Islamic Bank's new corporate offering

Digital letters of credit (L/Cs) feature in Sharjah Islamic Bank's (SIB's) newly launched corporate digital banking services.

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Saudi Eximbank and ICIEC sign two L/C reinsurance agreements

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Saudi Eximbank have signed two reinsurance agreements.

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Ugandan proposal to increase capital requirements could restrict L/C choice

A proposal has been issued by the Bank of Uganda (BoU) to increase the paid-up capital requirements of financial institutions in a move that could make letters of credit (L/Cs) available from a smaller selection of banks.

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L/Cs feature in infrastructure investor's Asian renewables play

Infrastructure investor Infratil says support for letters of credit (L/Cs) features in its commitment of US$233 million to establish Gurīn Energy, a renewable energy development platform headquartered in Singapore which will focus on greenfield renewable projects across Asia.

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Sri Lanka imposes 100 per cent cash margin on L/Cs and D/As for non-essential imports

The Central Bank of Sri Lanka (CBSL) has ordered the imposition of a 100 per cent cash margin deposit requirement against the importation of non-essential goods made under letter of credit (L/C) and documents against acceptance (D/A) terms.

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Sberbank opens L/C facility nearing EUR 250 million for major low-carbon iron ore facility

Russia's Sberbank has signed a master agreement on letters of credit (L/Cs) with Metalloinvest subsidiary, Mikhailovsky GOC, which operates the second largest open pit iron ore mine in Russia.

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Automotive trading start-up acquires established player for its L/C processing, trade financing and logistics capabilities

A Canadian start-up providing B2B trading solutions for auto dealers has acquired an established automotive trading, redistribution, and financing company to improve its trade financing, logistics, and letter of credit (L/C) processing capabilities.

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Virginia man sentenced for multimillion-dollar investment fraud that used fake L/Cs

A man from the US state of Virginia has been sentenced to 14 years in prison for his role in an investment fraud scheme that utilised fake letters of credit (L/Cs).

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L/Cs help several banks win transaction banking awards

Letters of credit (L/Cs) have helped several banks win awards in The Banker transaction banking awards 2021.

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L/C support features in IFC's record financing for Middle East and Africa

The International Finance Corporation (IFC) says it provided record financing of US$10.4 billion in fiscal year 2021 in the Middle East and Africa to help thousands of small businesses access finance, connect people and businesses to reliable digital infrastructure, trade and services, and help to meet critical health needs amid the coronavirus pandemic.

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India contemplates treatment of live L/Cs and B/Gs in corporate insolvencies

The Insolvency and Bankruptcy Board of India (IBBI), has published a discussion paper asking how letters of credit (L/Cs) and bank guarantees (B/Gs) should be considered as claims in the corporate insolvency resolution process.

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Interest-free loans for exporting SMEs in the Philippines with an L/C or purchase order history

Exporters in the Philippines that can demonstrate trading history by producing letters of credit (L/Cs) or purchase orders can apply for interest-free government loans to meet their shipping freight costs.

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Skuchain says its first DLPC transactions provided similar security to L/Cs

Skuchain has executed the first Distributed Ledger Payment Commitment (DLPC) transactions over its digital blockchain platform for global trade.

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L/Cs help Credit Bank of Moscow to substantial income boost

A substantial increase in guarantee and letter of credit (L/C) issuance fees has helped Credit Bank of Moscow (CBM) boost its net income by nearly 50 per cent in the first six months of 2021.

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Contour partners with GSBN to harness digital L/Cs with logistics and cargo data

Digital trade finance network Contour, which digitises paper-based trade finance processes including letters of credit (L/Cs), has partnered with the Global Shipping Business Network (GSBN) to offer an end-to-end digital solution for all participants involved in trading, financing and shipping goods around the world.

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L/Cs help Commercial Bank of Ceylon win ABF domestic trade finance bank of the year award

Innovative letter of credit (L/C) offerings have helped Commercial Bank of Ceylon (CBC) to be recognised in the 2021 Asian Banking and Finance (ABF) Awards as Sri Lanka's domestic trade finance bank of the year.

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Finastra's application for guarantees and standby L/Cs designated 2021 SWIFT compatible

Finastra has announced that its Fusion Trade Innovation application has been confirmed as the first to be designated 2021 SWIFT compatible for trade finance.

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L/Cs specifically contemplated in ASC X9 blockchain risk assessment framework

Blockchain letters of credit (L/Cs) are specifically contemplated in a new guide published by the body that develops and maintains US and international standards for the financial services industry.

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O K Lim's daughter charged with obstruction in Hin Leong Trading case

Lim Huey Ching, the daughter of the founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, has been charged with obstruction of justice in connection with the investigation into the collapse of the family's shipping and trading group.

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Indian investigators find fraudulent L/Cs in US$498 million money laundering case

Fraudulent letters of credit (L/Cs) in the name of shell companies feature in a major money laundering case brought by India's Enforcement Directorate (ED).

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University of Ghana taken to court after failing to obtain L/C for construction work

An American insurance company has filed a petition in a New York court to recover a US$165 million arbitration award against the University of Ghana (UG) over the termination of a contract for CPA Integras Ghana Limited (Africa Integras) to construct new buildings.

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L/Cs covered in AfDB's new transaction guarantee to support SMEs and trade in Africa

The African Development Bank (AfDB) has launched a transaction guarantee instrument designed to provide up to 100 per cent cover for non-payment risk to regional and international banks for trade transactions, including confirmed letters of credit (L/Cs), initiated by local banks in Africa.

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More banks join blockchain platform for domestic L/Cs in India

More banks have joined the recently formed Indian Banks' Blockchain Infrastructure Company (IBBIC) that will harness blockchain technology to process letters of credit (L/Cs) for domestic transactions in India (DC World News, 21 June 2021).

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Latin-American and Caribbean specialist Bladex says L/Cs helped to boost profits

A sustained positive trend in letter of credit (L/C) business written by Banco Latinoamericano de Comercio Exterior (Bladex) has been highlighted as a contributory factor in the banks 10 per cent increase in profits in the second quarter of 2021 compared with the same year's first quarter.

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CBA readies clients for Swift Release 2021 upgrading messages for guarantees and standby L/Cs

Norwegian software vendor Commercial Banking Applications (CBA) says it has shipped the latest annual release of its IBAS GBF (Global Banking Factory) software to all customers over three months ahead of schedule, allowing additional time for testing in advance of the upcoming transition to SWIFT Release 2021 in November this year.

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L/C familiarity will help manufacturers and small businesses participate in AfCFTA

Training to become familiar with processing letters of credit (L/Cs) and other payment types are amongst the steps local manufacturers and small business owners can take to increase participation in the African Continental Free Trade Area Agreement (AfCFTA) according to the Manufacturers Association of Nigeria (MAN).

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US department of education accused of planning to close law school while retaining L/Cs

Florida Coastal School of Law (FCSL) has filed a lawsuit against the US department of education for denying the school access to the federal student loan programme that it needs to operate.

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L/C delays partially to blame for Ghana's vaccine controversy

Delays in processing letters of credit (L/C) have been partially blamed for the failure of a controversial contract under which Ghana intended to purchase hundreds of thousands of doses of the Russian-made Sputnik V coronavirus vaccine via a minor Dubai royal family member.

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Uzpromstroybank signs up to GTFP for L/C guarantees and more

Uzbekistan's largest lender, Uzpromstroybank, has become a participant in the International Finance Corporation's (IFC's) Global Trade Finance Programme (GTFP) under which the World Bank Group member will guarantee letters of credit (L/Cs) and other trade finance instruments.

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UK's development finance institution announces US$30 million L/C support for Bangladesh

The UK's development finance institution, CDC Group, has announced a US$30 million trade finance loan to City Bank in Bangladesh that aims to help facilitate trade finance through usance paid at sight (UPAS) letters of credit (L/Cs).

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Fifteen banks restrained from paying out on L/Cs in Tanzanian oil tender dispute

Fifteen banks have been temporarily restrained by the Tanzania High Court from paying out on letters of credit (L/Cs) in a dispute over a tender to supply fuel under the country's petroleum bulk procurement system.

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More L/C support for troubled US boilermaker

Babcock & Wilcox Enterprises (B&W), has announced a new financing package that includes a substantial letter of credit (L/C) facility as the troubled US industrial boilermaker pursues its turnaround strategy.

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Advocacy groups call for an end of L/C provision for Amazon oil trades

Environmental advocacy groups Stand Earth and Amazon Watch are calling on major banks to stop providing letters of credit (L/Cs) to finance traders dealing in oil from the vulnerable Amazon rainforest.

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Contour launches trade finance innovation lab in Singapore

Blockchain trade finance network Contour has opened an innovation lab in Singapore where it will collaborate closely with its growing network of banks, corporates and other partners to research and develop what it describes as novel, digitally native trade finance solutions.

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ECI announces enhanced L/C support for UAE-based non-oil exporters

Etihad Credit Insurance (ECI) has enhanced its support for letters of credit (L/Cs) in its efforts to meet the needs of the UAE's non-oil exporters and boost the country's non-oil economy.

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L/Cs issued without due diligence at Malawi's central bank, four former officials face charges

The former governor of the Reserve Bank of Malawi (RBM), Dalitso Kabambe, and three other former senior central bank officials are facing four charges of financial impropriety, including money laundering.

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Hin Leong founder faces 105 new charges, 33 related to L/C usage

The founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, is facing an additional 105 charges, 33 of which relate to letter of credit (L/C) usage, in connection with allegedly fraudulent schemes at his now-defunct trading house.

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US$4.5 billion L/C facility from ITFC to cover crude, petroleum products and LNG imports into Pakistan

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), is to provide importers of crude oil, petroleum products and liquefied natural gas (LNG) into Pakistan with a US$4.5 billion three-year trade financing facility.

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Sri Lanka's severe forex shortage making L/Cs hard to come by

Banks are refusing letters of credit (L/Cs) for importers in Sri Lanka as the country struggles with a severe shortage of US dollars in the foreign exchange market.

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Increase in L/C defaults according to ICC's preliminary analysis

The International Chamber of Commerce (ICC) has published interim findings from its Trade Register on the performance of short-term trade and supply chain finance assets from 2019 and 2020.

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Contour launches network for domestic L/Cs in Bangladesh

Blockchain trade finance platform Contour has launched an initiative in Bangladesh to provide domestic letters of credit (L/Cs) for small- and medium-sized enterprises.

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Banks launch blockchain platform for domestic L/Cs in India

Fifteen banks have formed the Indian Banks' Blockchain Infrastructure Company (IBBIC) that will harness blockchain technology to process letters of credit (L/Cs) for domestic transactions in India.

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Vesper Energy expands L/C facility to boost power purchase and interconnection agreements

Developer, owner and operator of utility-scale renewable energy assets, Vesper Energy, has increased the size of its letter of credit (L/C) facility to US$140 million.

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FBCCI calls on government of Bangladesh to encourage and simplify L/C procedures

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is lobbying the National Board of Revenue (NBR) to simplify the rate of tax deducted at source payable on import letter of credit (L/C) transactions.

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Malawi and South Sudan to use L/Cs to help facilitate trade deal

The government of Malawi has said it will ensure letters of credit (L/Cs) are available to help importers in South Sudan buy food surplus to Malawian domestic requirements.

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HSBC Amanah Malaysia's new Islamic Green Trade Finance proposition includes L/C offering

HSBC Amanah Malaysia has launched its first Islamic Green Trade Finance proposition with a green bank guarantee for Cenergi, a project development, investment and operation company specialising in renewable energy and energy efficiency projects in Malaysia and Southeast Asia.

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Concerns growing over Yemen's food security as L/C mechanisms stalls

Concern is growing over an ongoing delay in the announcement of the next cycle of Yemen's letter of credit (L/C) import financing mechanism that provides foreign currency to traders at preferential exchange rates.

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South Africa mulls L/C support for key export sectors

South Africa's Export Credit Insurance Corporation (ECIC) is contemplating support for L/Cs to help exporters in key priority sectors as African countries prepare for increased trade and industrialisation following the signing of the African Continental Free Trade Area (AfCFTA) agreement.

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Document checking fintech Traydstream announces its series A funding round of US$8 million

London based fintech Traydstream has raised US$8 million after closing its series A funding round.

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L/Cs no longer needed for Tunisian goods entering Libya

Letters of credit (L/Cs) will no longer be needed for Tunisian goods entering Libya through land borders.

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L/Cs feature in proposed settlement with container ship owner for Suez Canal blockage

The Suez Canal Authority (SCA) has proposed an out of court settlement with the owners of the giant container ship that blocked the waterway earlier this year that includes an initial deposit with the balance payable by letters of credit (L/Cs).

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L/C reluctance could thwart Iran's plans for boosting oil exports

State-owned National Iranian Oil Company (NIOC) has said that it intends to boost exports of Iranian crude via the newly completed 1,000km Goreh-Jask pipeline that aims to allow Iran to circumvent US-led sanctions by piping oil direct to the Gulf of Oman thus bypassing the strait of Hormuz.

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L/C or similar requirement for safe remediation of Illinois' coal-ash waste could be model for other US states

New rules on coal-ash storage introduced by the Illinois Pollution Control Board could serve as an example for other US states looking to make safe by-products of coal-burning power plants, which include fly ash, bottom ash, boiler slag and various other residues.

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Sucafina says digital L/Cs to feature in new US$500 trade finance facility

Swiss coffee trader Sucafina has announced it intends to digitise its trade finance operations to support a new US$500 million senior secured borrowing base facility.

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Contour partners with Minehub while SMBC transitions to commercial digital L/Cs

Digital trade finance network Contour has partnered with blockchain platform MineHub to integrate their digital supply chain and trade finance technology solutions for the global metals and mining industry.

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Nova Scotia's tourism support L/Cs under fire

Criticism is being increasingly levelled at the Nova Scotia government for its award to three large tourism operators of 35 million Canadian dollars (C$35 million - US$28 million) of loan guarantees via standby letters of credit (L/Cs), (DC World News, 30 April 2021).

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Cochrane joins growing band of Alberta municipalities to offer surety bonds as L/C alternative

One of Canada's fastest growing communities says it is now able to accept surety bonds rather than letters of credit (L/Cs) to help free up capital for developers.

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Shorter banking hours and shipping disruption expected to impact on L/C business in India and beyond

Several factors are expected to impact on the letter of credit (L/C) market in India and beyond as the country tackles a deadly second coronavirus wave.

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Lack of L/Cs due to US sanctions helps delay ITI freight train

US sanctions preventing banks providing letters of credit (L/Cs) for deals involving Iran is one of the factors jeopardising the resumption of the much-stalled Istanbul-Tehran-Islamabad (ITI) freight train project.

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Court refuses application to restrain aircraft lessee from drawing on L/Cs due to coronavirus impacts

The Commercial Court (England and Wales) has dismissed an application by budget airline Salam Air for an injunction to restrain Latam Airlines from making demands pursuant to several letters of credit (L/Cs).

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Price volatility in Thai rice market causes buyers to shy away from L/Cs

Volatility in the Thai rice market created by the impacts of the coronavirus pandemic is causing buyers to shy away from letters of credit (L/Cs) and ask for the less risky option of documents against payment terms.

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Digitised L/C features in first UAE-India end-to-end blockchain deal

HSBC says it has completed the first integrated paperless letter of credit (L/C) and electronic documentary transaction for a steel export between the UAE and India.

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Fitch "should have seen the writing on the wall" when Chinese coal operator failed L/C obligations

Ratings agency Fitch has come under fire in an opinion piece published by Bloomberg for failing to recognise that a Chinese municipal government-owned coal operator failing its letter of credit (L/C) obligations should have prompted a downgrade.

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Bank of Africa selects Finastra solution to speed L/C document checking

One of the world's largest fintechs, Finastra, has announced that pan-African financial group, Bank of Africa, has selected its Conpend's Trade AI app from its open innovation platform, FusionFabric.cloud.

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DBS Bank goes live with Contour and offers digital L/C capabilities in Australasia

Singapore's DBS Bank has moved from blockchain trade finance provider Contour's beta network to its production network to offer streamlined digital letter of credit (L/C) transactions for customers in the Asia Pacific region.

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Nova Scotia backs tourism operators hit by pandemic with standby L/Cs

Three large tourism operators in Nova Scotia are receiving loan guarantees via standby letters of credit (L/Cs) totalling 35 million Canadian dollars (C$35 million - US$28 million) from the government of the Canadian province.

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ITFA publishes guide to controversial and misunderstood structured L/Cs

The International Trade and Forfaiting Association (ITFA) has released an in-depth guide to structured letters of credit (L/Cs).

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L/Cs feature in GTR Best Deals 2021

Letters of credit (L/Cs) feature in two of the eleven deals selected by Global Trade Review (GTR) as winners in its annual GTR Best Deals 2021.

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New UAE blockchain platform to curb trade-based financial crime contemplates L/Cs in due course

The UAE has launched a blockchain-based trade finance platform aimed at curbing double-financing and misinvoicing.

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Covid-19 caused early 2020 slump in African L/C business and correspondent banking says Afreximbank

A survey by the Africa Export-Import Bank (Afreximbank) has revealed that letter of credit (L/C) business and correspondent banking operations slumped at the start of 2020 as a result of the Covid-19 pandemic.

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Iberdrola and Footprint Power go to court over performance L/C

Iberdrola Energy Projects has reportedly filed a lawsuit in New York state court saying that a group of firms that control Footprint Power Salem Harbor Development, wrongly sought to draw on a standby letter of credit (L/C).

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Two former bankers amongst those charged in fraud involving L/C abuse

Two former bank officials are amongst several companies and their executives charged by India's Central Bureau of Investigation (CBI) in a fraud case featuring letters of credit (L/Cs).

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L/C risk cover contemplated in India's proposed trade credit insurance arrangements

The Insurance Regulatory and Development Authority of India (IRDAI) has issued draft proposals on a regulatory framework to facilitate general insurance companies to offer trade credit insurance cover to suppliers, licensed banks and other financial institutions to help businesses manage country risk.

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Indian importers urged to ditch L/Cs and adopt supply chain trade finance

Indian importers should ditch letters of credit (L/Cs) in favour of supply chain trade finance according to the founder of a fintech focused on alternative ways for corporate importers to control how their international suppliers are funded and paid.

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Yemeni multinational HSA accused by UN panel of "elite capture" of Saudi-funded L/C mechanism

Yemeni multinational Hayel Saeed Anam Group (HSA) has been accused by the UN Security Council Panel of Experts of making a profit of about US$194 million between mid-2018 and August 2020 from the Saudi-funded letter of credit (L/C) mechanism that was said to have been intended to enable importers to bring foodstuffs and other essential items into the war-torn country.

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L/C confirmation market projected to reach nearly US$5 billion by 2027

The global letter of credit (L/C) confirmation market size is projected to reach nearly US$5 billion by 2027 according to market research company, Valuates Reports.

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Invenergy says L/Cs feature in largest construction financing for largest US wind project

Renewable energy developer Invenergy, says letters of credit (L/Cs) feature in its recently completed construction financing for its largest wind energy development to date, the 999 megawatt Traverse Wind Energy Centre.

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L/Cs contemplated in efforts by ICC and Finastra to bridge the trade finance gap

Letters of credit (L/Cs) may be included in a strategic initiative to tackle the growing trade finance gap launched by the International Chamber of Commerce (ICC) and one of the world's largest fintechs, Finastra.

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Focus on L/Cs in Standard Chartered's new sustainable trade finance solutions

Letters of credit (L/Cs) are one of Standard Chartered's focus offerings in its launch of a new suite of sustainable trade finance solutions across Asia, Africa and the Middle East, Europe and the Americas.

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Contour partners with ThoughtWorks to strengthen its presence in China's L/C market

Contour, the blockchain-based open industry platform focused on digitising trade finance, has partnered with international software consultancy ThoughtWorks in China to strengthen its position in one of the world's largest letter of credit (L/C) markets.

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Bolero launches white-labelled trade portal-as-a-service solution with L/C functionality

Trade finance digitisation specialist Bolero International has announced what it describes as the industry's first white-labelled trade portal-as-a-service solution for financial institutions.

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Zimbabwe's L/C shortage persists

Zimbabwean importers are finding letters of credit (L/Cs) increasingly hard to come by, reportedly because the foreign exchange auction system is failing to satisfy demand.

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Trade finance and L/Cs crucial in Africa's build-back-better strategy

Facilitating trade finance and providing letters of credit (L/Cs) are priorities in Africa's efforts to rebuild its economy in the wake of the coronavirus pandemic according to the president and CEO of one of the continent's major regional developments.

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Budget review reveals South African government unilaterally sanctioned L/C settlement to help ailing national airline

A demand of 267 million South African rand (R267 million - US$17.9 million) for financially troubled national airline South Africa Airways' (SAA) government guaranteed letters of credit (L/Cs) was made and settled in the country's 2020-21 financial year.

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Jail for former bank CEO who used unauthorised L/Cs to fraudulently obtain US$1.6 million

A former bank CEO has been sentenced to prison by a court in the US state of Minnesota for falsifying bank records.

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EximBank India gets additional funds to provide L/Cs for export sales

Export-Import Bank of India (EximBank India) has received the equivalent of around US$225 million of additional state funding to help support Indian exports.

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Laboured L/C processing a bottleneck in Bangladesh's investment climate

Laboured letter of credit (L/C) processing is one of the remaining bottlenecks in Bangladesh's investment climate according to Japanese delegates at a Japan-Bangladesh trade and business roundtable in Dhaka.

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Fintech Tradeteq raises US$9.4 million to enable L/C distribution

Tradeteq, a fintech that develops technology for bank asset distribution, has secured funding of an additional US$9.4 million from a consortium of US technology investors.

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SBI (California) opts for Surecomp's L/C and documentary collections solution

Trade finance solutions provider to banks and corporates, Surecomp, has announced that the State Bank of India (California) (SBIC) will be using one of its solutions to process standard and standby letters of credit (L/Cs) and documentary collections.

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LGR Crypto Bank mulls automated L/Cs for Silk Road traders

LGR Crypto Bank of Switzerland is mulling new automated letters of credit (L/Cs) that harness digital smart contracts as part of its efforts to provide trade finance services for deals between Silk Road countries and more than 65 other countries.

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AEB and Wärtsilä successfully use aspects of L/C processing to test secure data sharing

Nordic financial services group SEB and Finnish industrial group Wärtsilä have used aspects of letter of credit (L/C) processing to carry out a test of secure data sharing between companies in trade finance operations.

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SIA's digital solution promises easier and faster management of L/C portfolios

Technology infrastructure and services provider for financial institutions, SIA, says it has launched a new platform that allows banks to fully digitise trade finance processes, making it easier and faster for corporates and small- and medium-sized enterprises operating in markets around the world to manage their letter of credit (L/C) portfolios.

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Calls in Bangladesh for local settlement of L/C disputes

Bangladeshi firms should settle international letter of credit (L/C) disputes by using alternative dispute resolution (ADR) methods, especially amid the ongoing coronavirus pandemic, according to the president of the Dhaka Chamber of Commerce and Industry (DCCI).

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Largest US solar developer upsizes L/C capacity

8minute Solar Energy has significantly upsized its letter of credit (L/C) facility to a total of US$350 million with support from new lenders.

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Global Witness says Libya loses millions via fraudulent L/Cs, central bank defends position

A new report published by Global Witness (GW) claims to show that Libya continues to lose millions of dollars a year through the fraudulent use of its letters of credit (LC) system run by the Central Bank of Libya (CBL).

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L/Cs help and hinder Yemen's efforts to import sufficient food

Yemen's food supply chain has continued to function through five years of conflict, partly due to the availability of letters of credit (L/Cs) to import essential foodstuffs.

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Japanese companies announce government-backed L/C pilot project

A group of Japanese companies has announced a collaborative digitalisation pilot project for Vietnam-bound trade with the first set of trial operations focusing on their receipt of letters of credit (L/Cs).

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L/Cs to be invoked as oil and gas companies bankruptcies rise

Letters of credit (L/Cs) to meet decommissioning liabilities are expected to be invoked as more oil and gas companies are at risk of being left to pick up a defunct partners' liabilities.

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Bolero agrees to provide electronic bill of lading for dltledgers' L/C platform

Trade finance digitisation provider Bolero has signed a formal partnership agreement with the dltledgers blockchain platform for trade execution. This opens the way for importers and exporters for the first time to execute physical trades, end-to-end, without sending paper documents.

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ECI helps UAE businesses move beyond L/Cs

The UAE's export credit insurer says it issued 420 million UAE dirham (AED420 million - US$114 million) of trade credit support to small- and medium-sized enterprises (SMEs) in the 11 months to November 2020.

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WeWork alleges L/C threat from landlords

WeWork has filed a complaint alleging one of its landlords violated its lease agreement for a property in New York by threatening to draw down a multi-million dollar letter of credit (L/C).

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Credit Suisse, ING and BNP pull out of L/C provision for crude oil from Ecuador

Three of the six banks named as letter of credit (L/C) or other trade finance providers for major oil deals with the Amazon region have decided to stop financing traders dealing in crude oil from Ecuador.

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Canadian court decision bodes well for commercial landlords and lenders

The Ontario Court of Appeal has overturned a decision of a lower court and found that a letter of credit (L/C) issued by a third-party lender as security for a tenant's obligations under a lease must be honoured in full, even in the event of a tenant becoming bankrupt.

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Online L/C offering helps Djibouti's CAC International Bank win award from The Banker

CAC International Bank has been recognised as the best bank in Djibouti in The Banker publication's Bank of the Year Awards 2020.

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Angola adjusts limits for exchange operations on import L/Cs

Banco Nacional de Angola (BNA - National Bank of Angola) has adjusted the limits for exchange operations on imports of goods on letter of credit (L/C) and advance payment terms.

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Australian insurance regulator releases new guidelines on standby L/Cs

The Australian Prudential Regulation Authority (APRA) has published new guidelines for authorised deposit-taking institutions (ADIs) on the measurement of credit risk weighted assets relating to insurance standby letters of credit (L/Cs).

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Indian investigators raid premises in suspected L/C fraud case

India's Central Bureau of Investigation (CBI) has raided several premises, including those of Delhi-based Jay Polychem India in connection with allegations that they fraudulently obtained letters of credit (L/Cs) to cause losses of a total of the equivalent of around US$270 million to a consortium of 13 banks.

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L/C facility to boost Vesper Energy's solar and energy storage development pipeline

Developer, owner and operator of utility-scale renewable energy assets, Vesper Energy has closed a new letter of credit (L/C) facility with Macquarie Group for up to US$100 million.

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Komgo and Mitech announce collaboration to facilitate L/C transactions and guard against fraud

Commodity trade finance blockchain platform Komgo and specialist trade finance fintech Mitech have announced a collaboration to provide straight through processing of letters of credit (L/Cs) and guarantees.

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OCBC's sustainable finance framework includes green L/C provision

OCBC Bank has developed a framework that makes it simpler and less costly for Singaporean small- and medium-sized enterprises (SMEs) to access sustainable financing of up to 20 million Singaporean dollars (S$20 million - US$15 million) to accelerate their sustainability plans.

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Vietnam's HDBank reports progress on blockchain L/C transactions

HDBank of Vietnam has processed its first blockchain letter of credit (L/C) transactions since joining the Contour blockchain trade finance network last year (DC World News, 19 June 2020).

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Union Bank of Nigeria joins GTFP

Union Bank of Nigeria (UBN) has become a participant in the International Finance Corporation's (IFC's) Global Trade Finance Programme (GTFP) under which the World Bank Group member will guarantee letters of credit (L/Cs) and other trade finance instruments.

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US sanctions preventing L/Cs for Iran an act of war says professor

Recent US unilateral financial sanctions imposed on Iran are cutting off Iranian banks from the international banking system, making letters of credit (L/Cs) to import medicine and food into the Islamic republic much more difficult to obtain according to a professor who teaches international business at the George Washington University.

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City Bank issues Bangladesh's first cross-border blockchain Shariah L/C on the Contour network

City Bank has become the first Bangladeshi bank to execute a cross-border letter of credit (L/C) transaction under a Shariah-based financing arrangement executed using blockchain technology on the Contour network.

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UBAF settles for nearly US$8.6 million for "reckless disregard" of Syria sanctions in internal transfers and L/C transactions

Union des Banques Arabes et Francaises (UBAF) of France has reached a settlement with the US treasury department's Office of Foreign Assets Control (OFAC) in which the bank has agreed to remit US$8,572,500 to settle its potential civil liability for 127 apparent violations of Syria-related sanctions.

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Contour partnership with TradeSun will further reduce L/C processing time

Blockchain trade finance network Contour has announced a partnership with TradeSun, a trade finance platform that features artificial intelligence technology that augments human behaviour by learning how employees interact with trade finance documents.

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UK's new National Risk Assessment focuses on TBML challenges

The UK has published its 2020 National Risk Assessment (NRA), the third comprehensive assessment of money laundering and terrorist financing risk in the country.

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ADB to support L/C business under US$500 million Vaccine Import Facility

The Asian Development Bank (ADB) is making available a US$500 million Vaccine Import Facility to support the efforts of its developing members to secure safe and effective vaccines, as well as the goods that support distribution and inoculation.

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ZTE seeks access to L/Cs from US$6.8 billion credit facilities

Executives at Chinese telecommunications giant, ZTE Corporation have approved a plan to seek credit facilities that will improve the Chinese multinational telecommunications equipment and systems company's access to letters of credit (L/Cs).

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ITFC launches new Islamic L/C confirmation offering

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), has launched a new standalone letter of credit (L/C) confirmation instrument as part of its strategy to expand its private sector interventions.

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Pausing L/C payments in response to fraud allegations not straightforward says lawyer

International shipping and commodity law firm Helmsman has held a webinar discussing issues relating to letter of credit (L/C) payments related to sale and purchase (S&P) of commodities, S&P of ships from financially troubled companies facing fraud allegations, and trafficking in spent bills of lading.

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Israel issues guidance for L/C transactions with UAE banks

Israel's supervisor of banks, Yair Avidan, has written a guidance note to the country's banks warning them of the risks associated with conducting letter of credit (L/C) and other transactions with banks in the UAE.

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Door-to-door L/C deliveries help Commercial Bank of Ceylon to trade finance award

Door-to-door deliveries of letters of credit (L/Cs) have helped Commercial Bank of Ceylon win the Best Trade Finance Bank in the Sri Lanka category for the third year in a row at the 2020 Asian Banker Transaction Awards.

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Bangladesh Bank helps exporters away from L/Cs and towards open account terms

Bangladesh Bank is assisting local exporters transact on open account terms as a result of recent policy changes in Bangladesh.

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HSBC goes into production on Contour L/C network

Contour has announced that HSBC has become the first bank to go live on its global trade finance network that provides digitised letters of credit (L/Cs).

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Bank of China sues BP as scale of L/C abuse in Hin Leong collapse emerges

Bank of China is suing BP for allegedly fabricating oil deals with collapsed oil trader Hin Leong which involved the oil major withdrawing a total of US$125.7 million on three letters of credit (L/Cs) in early February 2020 from Bank of China.

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TradeWaltz presses ahead with facility for mixing blockchain L/Cs with old fashioned ones

A consortium of banks, insurance companies, trading conglomerates and shipping and logistics companies are pressing ahead with TradeWaltz, a trade information management system developed by NTT Data, that will offer letters of credit (L/Cs) issued by banks and related documents handled by insurance and logistics companies.

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Container chaos forcing L/C amendments

A severe shortage of shipping containers at major export ports, notably in Asia, is now seriously disrupting global supply chains and forcing traders to ask counterparties to amend the terms of certain letters of credit (L/Cs).

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IDBI Bank first to implement document embedding for L/C and bank guarantee messaging

Industrial Development Bank of India (IDBI) says it has become the first bank to implement a new document embedding facility for letter of credit (L/C) and bank guarantee messages sent over India's Structured Financial Messaging System (SFMS), the secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications.

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Credit Suisse and UBS defend role in L/C provision for Amazon oil trades

Credit Suisse and UBS have defended their roles in the financing of oil pipelines that sustained damage that caused millions of litres of oil to spill into the Amazon river.

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Special L/C rates for contractors in Uganda's dfcu Bank's coronavirus response

Special offers on letters of credit (L/Cs) for contractors feature in dfcu Bank's continued efforts to support businesses amidst the numerous challenges presented by the impacts of the coronavirus pandemic.

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Libya reverses requirements for all imports to be paid for on official L/C terms

Libya's internationally recognised government in Tripoli has quickly overturned a central bank decree requiring that all imports should be paid for on letter of credit (L/C) terms.

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GFI announces cloud-based tool suitable for L/C providers to detect misinvoicing

Global Financial Integrity (GFI), the Washington-based non-profit best known for its work researching and lobbying to prevent illicit financial flows, has developed a cloud-based risk assessment application to detect misinvoicing.

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Standard Bank Malaysia waives L/C fees to help SME recovery

Standard Bank Malaysia has waived fees on letters of credit (L/Cs) as part of its efforts to help small- and medium-sized enterprises (SMEs) weather the impacts of the coronavirus pandemic.

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Entrepreneur's innovative solution for Libya's L/C shortage

An entrepreneur selling a range of goods to Libya has found an innovative solution to overcome the difficulties of obtaining letters of credit (L/Cs) for trades involving the conflict weary North African country.

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UniCredit's L/C and forfaiting combination manages payment risk for lower-rated buyers

UniCredit has used an innovative financing solution combining letters of credit (L/Cs) with forfaiting to provide supply chain finance for a transaction involving a highly-rated supplier and a lower-rated buyer according to the Italian banking and financial services company's director of global transaction banking, Luis Quilico.

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HSBC completes first blockchain L/C in Bangladesh

HSBC Bangladesh has completed the country's first blockchain cross-border trade settled using a letter of credit (L/C).

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Partnership with Mitigram will bolster Bolero's L/C offering

Bolero International, probably the most established of global trade finance digitisation providers, has announced a new partnership with Mitigram, an online global platform for funding and hedging trade risk.

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L/C shortage hampering high risk countries' ability to purchase coronavirus-related material

Importers in countries where there is a high perception of risk have been unable to obtain the letters of credit (L/Cs) they need to buy coronavirus-related material equipment they need according to a counsellor in the World Trade Organisation's (WTO's) Economic Research and Statistics Division.

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African trade finance gap closing, but pool of global correspondent banks shrinking

A new report by the African Development Bank (AfDB) and the African Export-Import Bank (Afreximbank) reveals that between 2015 and 2019 that, on average, letters of credit (L/Cs) and documentary collections were associated with half of African banks' trade finance portfolios.

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Cooperation agreement means CITIC Bank's forfaiting platform will inform China's domestic L/C blockchain solution

China National Clearing Centre (CNCC), a subsidiary of the Chinese central bank, has signed a cooperation agreement for a blockchain forfaiting platform with Bank of China, China CITIC Bank and China Minsheng Bank.

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London lawyers cite standby L/Cs in defence of US Department of Justice proceedings

The US Department of Justice (DOJ) has filed civil forfeiture proceedings over US$330 million held on behalf of a client by a prominent London law firm.

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HSBC first foreign bank to transact on China's trade finance blockchain platform

HSBC has become the first foreign bank to complete a forfaiting interbank transaction featuring a letter of credit (L/C) on the China Trade Finance Inter-bank Trading Blockchain Platform (CTFU).

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ADB participates in first blockchain L/C transaction between Vietnam and Thailand

Standard Chartered has completed its first cross-bank letter of credit (L/C) blockchain transaction between Vietnam and Thailand over the Contour network, the blockchain-based open industry platform focused on digitising trade finance.

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Sberbank says L/C features in first deal with Islamic Development Bank group member

Sberbank has structured a trade finance deal with an Islamic Development Bank (IsDB) group member for the first time. It features an export letter of credit (L/C).

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New Saudi rules restrict money exchange dealers from opening L/Cs

Saudi Arabia has introduced new anti-money laundering and counter financing of terrorism (AML/CFT) rules to limit the activities of money exchange dealers that includes barring them from opening letters of credit (L/Cs).

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Despite coronavirus impacts FATF removes Iceland and Mongolia from grey list, remains committed to AML/CFT brief

Due to the impacts of the coronavirus pandemic, the work of the Financial Action Task Force (FATF) has been significantly disrupted this year, including its work determining 'jurisdictions under increased monitoring', where letters of credit (L/Cs) can be harder to come by.

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Sberbank of Russia and China's Harbin Bank sign L/C agreement

Sberbank of Russia has entered into an agreement to finance letters of credit (L/Cs) with one of China's largest regional banks, Harbin Bank.

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Networks technology company continues using L/Cs to cope with coronavirus conditions and grow business

Narrowband networks technology company CyanConnode is continuing to turn to letters of credit (L/Cs) to grow its business whilst adapting to working under coronavirus crisis conditions.

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ECGE to insure Banque Misr customers against non-payment of L/Cs

Egypt's Banque Misr and the Export Credit Guarantee Company of Egypt (ECGE) have reached an agreement to protect Egyptian exporters.

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DBS and Standard Chartered lead development of pilot for trade transparency in Singapore

Singapore's DBS Bank and the UK's Standard Chartered are leading an industry workgroup including 12 other banks to develop a Trade Finance Registry (TFR) pilot with the aim of enhancing trade transparency in Singapore.

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Digitising L/Cs and guarantees helps Standard Bank win Euromoney award

Standard Bank's work on automating letters of credit (L/Cs) and guarantees has helped it to be named best investment bank in Africa for the second year running in this year's Euromoney Awards for Excellence.

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L/C functionality in Union Systems' first ever multibank international trade finance portal in Nigeria

Union Systems has announced the launch of its Optimus solution, which the company claims is the first multibank international trade finance portal in Nigeria.

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Sberbank introduces entirely online L/C service using escrow account

Russia's Sberbank has announced that individual customers can now open an escrow account and obtain a letter of credit (L/C) via the Sberbank Online mobile app without going to the bank.

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UniCredit sues Hin Leong over L/C for fake oil deal with Glencore

UniCredit SpA has sued Hin Leong Trading Pte Ltd over a letter of credit (L/C) that the collapsed Singapore oil trader obtained ostensibly to purchase oil but instead used to settle debts.

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Contour blockchain trade finance platform goes live

Global trade finance network Contour is entering live production, with a clear focus on digitalising letter of credit (L/C) processing.

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L/C business helps banks win GTR Leaders in Trade awards

Several winners of the recently announced Global Trade Review (GTR) Leaders in Trade awards are credited for their ability to grow or improve their letter of credit (L/C) services.

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Standard Bank becomes first African member of Contour

Standard Bank has become the first bank in Africa to join the Contour blockchain trade finance network as it looks to expand its offering beyond standard letters of credit (L/Cs).

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Central Bank of Iraq requirements for foreign currency deposits against guarantees and L/Cs deterring Lebanese banks

New requirements of the Central Bank of Iraq (CBI) for the proportion of foreign currency deposits allowed against guarantees and letters of credit (L/Cs) is one of several reasons behind the withdrawal of Lebanese banks from Iraq according to assistant general manager for external expansion at Lebanon's Bank of Beirut and Arab Countries (BBAC), Chawki Badr.

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Bolero joins Marco Polo trade finance network

Bolero International, perhaps now the most established of global trade finance digitisation providers, has joined the Marco Polo trade finance network, bringing with it its Galileo letter of credit (L/C) and e-Bill of Lading solutions.

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L/Cs feature in preferential terms offered to purchasers of US defence exports

The US is developing new options for international arms customers to prevent allies and partners from cancelling planned defence procurements programmes as a result of the impact of coronavirus pandemic.

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Contour announces new blockchain L/C deal featuring Guangxi Shenglong Metallurgical

Blockchain trade finance consortium Contour has announced a transaction on its blockchain network between Rio Tinto and Guangxi Shenglong Metallurgical (GMS).

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Standard Chartered and OCBC lose out to Winson in ICC's Hin Leong L/C ruling

The International Chamber of Commerce (ICC) has decided against two banks in letter of credit (L/C) disputes related to the now collapsed Hin Leong Trading and in favour of Singapore based oil Winson Oil Trading according to the Reuters news agency.

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Largest solar developer in the US increases L/C capacity tenfold

8minute Solar Energy says it has closed a US$225 million letter of credit (LC/) facility from a consortium of five banks.

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Pandemic motivates SMBC to accelerate L/C digitisation process with komgo and Contour

Sumitomo Mitsui Financial Group (SMBC) says that it is joining two letter of credit (L/C) focused blockchain trade finance consortia, komgo and Contour.

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Bangladesh railways benefit from L/Cs on preferential terms from India

India has handed over ten broad-gauge diesel-engined locomotives to Bangladesh in support of 17 railway sector projects that are part of a letter of credit (L/C) based assistance scheme extended by India to Bangladesh.

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L/Cs help wireless technology provider revive after coronavirus shocks

Evidence that companies are turning to letters of credit (L/Cs) as they adapt to working under coronavirus crisis conditions has been underlined by UK-based wireless communication technology provider CyanConnode Holdings when it announced its audited results for the 15-month period ended 31 March 2020.

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Trade finance asset distribution could ease L/C difficulties for SMEs in coronavirus crisis

London-based Tradeteq, which claims to be the first electronic trading platform for the institutional trade finance market, says that small- and medium-sized enterprises (SMEs) will find it harder to access letters of credit (L/Cs) in the wake of the coronavirus pandemic.

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US imposes sanctions on Iranian steel, aluminium and iron firms

The US treasury department's Office of Foreign Assets Control (OFAC) has named several Iranian metals companies as Specially Designated Nationals (SDNs).

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Indonesian police allege long term fugitive used fictitious L/C to obtain bank loans

Indonesian police have brought multiple charges against captured fugitive Maria Pauline Lumowa, who allegedly used a fictitious letter of credit (L/C) to obtain bank loans.

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Lebanese L/C openings plummet as buyers increasingly struggle to finance imports

Lebanon's central bank has said that letter of credit (L/C) openings have declined by more than 90 per cent as the country struggles with a failing economy, a hard currency shortage, the impacts of the coronavirus pandemic and the devasting 4 August explosion at Beirut port.

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Co-operative Bank of Kenya launches import duty finance product to enhance L/C offering

The Co-operative Bank of Kenya (CBK) is offering a new Import Duty Finance product to add to the range of services already offered by the bank, including letters of credit (L/Cs).

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Misuse of supply chain finance worrying but not widespread, says Global Supply Chain Finance Forum (GSCFF)

New report from the industry coalition GSCFF addresses head-on the criticisms relating to impact on suppliers, financial reporting and potential credit and liquidity risks

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Russia's CBM establishes renminbi denominated L/C facility for clothing retailer

Credit Bank of Moscow (CBM) has signed a multicurrency loan agreement with one of Russia's largest clothing retailers, O'stin, and announced that it can now open renminbi denominated letters of credit (L/Cs) for its purchases from Chinese suppliers.

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Blockchain will hamper L/C fraud says MUFG Bank

Japan's MUFG Bank has completed its first complete transaction using Trakk, a blockchain system that builds document audit trails to guard against fraud and falsification.

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Blockchain's capacity to speed up L/C processing

The chief executive officer (CEO) of Contour, the blockchain based open trade finance network formerly known as Voltron, has shared his views with the Reuters news agency on a blockchain transaction executed earlier this year between global miner Rio Tinto and China's Nanjing Iron & Steel.

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Coronavirus exacerbating global trade finance gap says World Economic Forum

The issuance of letters of credit (L/Cs) and other trade finance instruments is becoming more difficult as a result of the coronavirus pandemic according to the World Economic Forum (WEF).

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DNB one of many banks ready for delayed SWIFT standby L/C and guarantee processing

Norway's largest bank, DNB, is ready to switch to new online versions of both its front and back-end solutions that are already compliant with rigorous changes to SWIFT messaging protocols that do not now come into force until November 2021 according to the bank's technology provider, Surecomp.

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Fintech TheGuarantor offers L/C alternative to commercial landlords and tenants

A security deposit alternative to letters of credit (L/Cs) put up by tenants to guarantee payment of rent to commercial landlords is on offer from fintech company, TheGuarantors.

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Guarantees and L/Cs for Libya help ATB's latest Fitch rating

Sustained letter of credit (L/C) business with Libya is one reason given by Fitch Ratings why it has affirmed Arap Turk Bankasi's (ATB's) long-term local and foreign currency issuer default ratings at 'B+' with a negative outlook.

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Guarantees and L/Cs for Libya help ATB's latest Fitch rating

Sustained letter of credit (L/C) business with Libya is one reason given by Fitch Ratings why it has affirmed Arap Turk Bankasi's (ATB's) long-term local and foreign currency issuer default ratings at 'B+' with a negative outlook.

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Cameco asks for return of L/C after Canada tax appeal ruling

One of the world's largest publicly traded uranium companies, Cameco is asking the Canadian government to return the letter of credit (L/C) the miner submitted to guarantee payment to the Canada Revenue Agency (CRA) if it were proved that it had paid insufficient taxes.

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SocGen and BNP Paribas put the brakes on commodity trade finance deals

Société Générale is closing its Singapore trade commodity finance unit after the collapse of oil trader Hin Leong Trading prompted the bank to call a halt on fresh funding for commodity deals in the region.

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DBS Bank joins R3's Corda blockchain trade-finance network Contour

Singapore's DBS Bank has joined Contour's open trade network, which is built on blockchain technology company R3's Corda platform.

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Lawyer suggests L/C safety net for US commercial landlords

Commercial landlords in the US may be more inclined to look to letters of credit (L/Cs) to protect themselves from unexpected bankruptcies precipitated by the economic fallout of the coronavirus pandemic according a partner in the Orlando office of law firm Shutts & Bowen.

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L/Cs a key element in Hertz agreement with investors

Interest payments on Hertz Vehicle Financing II asset-backed securities (ABS) funded by draws on existing letters of credit (L/Cs) are a key element in the troubled vehicle rental giant's interim settlement and agreement with investors holding those securities.

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Philippines mulling virtual banks for L/C issuance

Legislators in the Philippines are considering the introduction of a regulatory framework for virtual banks that would enable them to issue some letters of credit (L/Cs).

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Philippines mulling virtual banks for L/C issuance

Legislators in the Philippines are considering the introduction of a regulatory framework for virtual banks that would enable them to issue some letters of credit (L/Cs).

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Court denies relief for L/Cs impacted by loss of business due to coronavirus crisis

An Indian court has denied relief to a jewellery exporter that asked its bank to stop payments on letters of credit (L/Cs) after its cash flow dried up as a result of business disruption caused by the coronavirus pandemic.

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Expect more L/C requests says Atradius

Payment delays in Asia have increased and as the region learns to cope with business disruptions caused by the coronavirus pandemic, in some countries volumes of letter of credit (L/C) business look likely to increase according to new economic research by trade credit insurer Atradius.

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Digital priorities revealed in latest ICC Global Survey on Trade Finance

Digital trade is a key priority for banks in the International Chamber of Commerce's (ICC) 11th annual Global Survey on Trade Finance.

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India plans for digital L/Cs in efforts to ease coronavirus impacts on ports

The Indian government is looking to digitalise letters of credit (L/Cs) and other trade documentation as part of its electronic Port Community System (PCS).

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Singapore BP staff associated with L/C dispute placed on leave

Several BP trading staff in Singapore have been placed on leave because their names have appeared in court documents filed by banks in their dispute with several commodity traders Bloomberg has reported.

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Payment practices deteriorating in Asia despite L/C and bank guarantee usage says Atradius

The coronavirus pandemic coupled with an increasingly bitter US-China trade war have precipitated a deterioration in payment practices across Asia according to a survey by Atradius.

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Four charged with bribery facilitated HK$75 million L/C fraud and money laundering

A senior executive of a listed company subsidiary and two directors of two construction companies are amongst four people charged by Hong Kong's Independent Commission Against Corruption (ICAC) for their alleged roles in a 75.3 million Hong Kong dollars (HK$75.3 million - US$9.7 million) letter of credit (L/C) fraud involving over HK$1.7 million in bribes and money laundering.

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APIsure to help with digital L/C and bank guarantee processing

Surecomp has announced the opening of its Application Programming Interfaces (API) architecture to customers in a test environment.

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RBI fines Citibank for failing to obtain customer declarations before providing non-fund based facilities

The Reserve Bank of India (RBI) has imposed a 40 million Indian rupee (US$530,000) fine on Citibank for failing to comply with banking regulations and non-compliance with the central bank's directions.

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UPS Capital mulls alternative to L/Cs for SMEs

UPS Capital is looking to develop trade finance offerings that may provide alternatives to letters of credit (L/Cs) and may be particularly appropriate for small- and medium-sized enterprises (SMEs).

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Liberian court judgment may - or may not - end DTL's dispute with GT Bank

Liberia's supreme court has ordered a lower court to enforce its 2019 judgment against the Guaranty Trust Bank (GT Bank) to issue Doramart Trade Limited (DTL) a letter of credit (L/C).

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New L/C arrangements in Delta Air Line's amended revolving credit facility

Delta Air Lines has amended its US$2.65 billion credit facility agreement so that it now features a new standby letter of credit (L/C) facility.

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Interpol posts new red corner notice in US$2 billion L/C and letter of undertaking scam

Interpol has once more posted a red corner notice against fugitive celebrity jeweller Nirav Modi's stepbrother on its web site after taking it down last year when Nehal Deepak Modi launched an appeal against the notice.

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German businesses can obtain L/Cs for trade with Iran from banks claims UANI

Smaller German businesses can still obtain letters of credit (L/Cs) to do business with Iran from banks in Germany, despite US sanctions that have made L/Cs hard to obtain from banks across the world according to a report published last week by United Against Nuclear Iran (UANI).

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Fitch assigns 'A' rating to L/C enhanced bond

Fitch Ratings has assigned China's Neijiang Investment Holding Group's proposed US dollar credit-enhanced bonds an A rating.

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Traydstream partners with Infosys Finacle to drive blockchain based L/C automation.

Traydstream, a fintech company specialising in trade document scrutiny using artificial intelligence (AI), has announced the signing of a joint partnership agreement with a subsidiary of information technology major Infosys.

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L/Cs included in new Texan challenger bank offering

Gulf Capital Bank (GCB), the first new bank to open in Houston in the US state of Texas in over a decade, is including letters of credit (L/Cs) in its service offering.

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Pandemic has greatly affected growing global L/C confirmation industry

The coronavirus pandemic has greatly affected the global letter of credit (L/C) confirmation industry according to a report published by Allied Market Research.

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Bahrain's Bank ABC deploys Finastra platform to meet increased L/C demand

Bahrain-based Bank ABC has deployed the Fusion Trade Innovation platform to standardise its core wholesale banking systems and processes and meet a dramatic increase in demand for export letters of credit (L/Cs) according to Finastra, the fintech software vendor that developed the platform.

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Vietnam's HDBank joins Contour to improve L/C

HDBank of Vietnam has joined the Contour blockchain letter of credit (L/C) platform to increase its ability to extend trade financing to more corporates.

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Contour and Chinsay blockchain partnership to improve L/C communications

Contour, the blockchain-based open industry platform formerly known as Voltron, has announced a partnership with Chinsay, a technology company specialising in supply chain data capture and risk management.

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L/C fraudster tops list of India's wilful defaulters

Gitanjali Gems, the company owned by Mehul Choksi, who, along with his nephew celebrity jeweller Nirav Modi, engineered a massive bank fraud in the Indian diamond sector, tops the list of "wilful defaulters" released by the Reserve Bank of India (RBI).

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Afreximbank brings Zimbwabe's banks together to create model L/C

The African Export-Import Bank (Afreximbank) is providing training to bankers to help enhance their technical skills in letters of credit (L/Cs) and other aspects of trade finance.

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Winson demands US$21.5 million for dishonoured L/C in trade with Hin Leong

Singapore based Winson Group is demanding 30.4 million Singaporean dollars (SG$30.4 million - US$21.5 million) from Oversea-Chinese Banking Corporation (OCBC) for dishonouring a letter of credit (L/C) the bank issued in respect of a trade with Hin Leong Trading.

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Contour partners with TradeCloud to expand digital L/C offering

Contour, the blockchain based open trade finance network formerly known as Voltron, has announced a partnership with TradeCloud, a digital portal for producers, consumers and traders.

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ICC says up to US$1.9 trillion needed to support post-pandemic trade credit, including L/Cs and guarantees

The International Chamber of Commerce (ICC) has said a large proportion of a possible US$5 trillion of trade credit that will be needed to enable a rapid recovery from the coronavirus crisis will be needed to provide capacity in the bank-intermediated market, including letters of credit (L/Cs) and bank guarantees.

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Counting the costs and assessing the implications for L/Cs after commodity trader mega-failures

Banks are beginning to count the cost of mega-failures amongst commodity traders, notably in Singapore and Dubai, whose less than rigorous trading practices and in some cases suspected fraud have been exposed by the impacts of the coronavirus pandemic.

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Angola issues clarification on L/C settlements

Banco Nacional de Angola (BNA - National Bank of Angola) has issued a clarification on the Angolan settlement of letters of credit (L/Cs) in favour of the exporter.

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SEC says L/C trigger for bribery payment featured in ex-Goldman Sacks executive's web of corruption

A former managing director of Ghana's Tema Oil Refinery (TOR), Asante Berko, has been charged under the US' Foreign Corrupt Practices Act (FCPA).

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SWIFT delays big changes to standby L/C and guarantee messaging

Due to the impacts of the coronavirus pandemic, electronic messaging platform SWIFT has delayed their ISO 20022 migration date for cross-border payments from November 2021 to the end of 2022.

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DLPC CorDapp to promote interoperability of blockchain underpinning digital L/C processing

Blockchain company Skuchain has released the DLPC CorDapp, a component of its Inventory Control & Finance (ICF) product, with the aim of promoting interoperability between trade finance blockchain applications.

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Coronavirus pushes EBRD's financing through TFP to over EUR 500 million a month for the first time

The European Bank for Reconstruction and Development (EBRD) says that financing under its letter of credit (L/C) oriented Trade Facilitation Programme (TFP) last month topped EUR 500 million (US$546 million) for the first time.

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Hertz seeks alteration of L/C terms to cope with coronavirus impacts

Hertz, the US-based car rental group, is seeking to alter terms of letters of credit (L/Cs) it uses in the course of its business as part of a fundamental restructuring of its finances.

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Contour announces first yuan-denominated blockchain L/C deal

Open trade finance network Contour has announced the completion of the first yuan-denominated blockchain letter of credit (L/C) deal between Baosteel and Rio Tinto.

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L/Cs substantially help Al Baraka Bank of Algeria to boost profits by 23 per cent

Al Baraka Bank Algeria (ABBA), one of the banking units of Bahrain-based Al Baraka Banking Group BSC (ABG), has achieved a significant growth in its net income of 23 per cent during the year 2019 compared to 2018.

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Latest ICC Trade Register 2019 Report is now available

What is the ICC Trade Register?The ICC Trade Register is an unparalleled instrument to measure global risk in trade and export finance facilitated by the International Chamber of Commerce (ICC) and the world's leading banks.

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Third year of lower default rates for L/Cs says 2019 ICC Trade Register Report

The International Chamber of Commerce (ICC) has released its 2019 Trade Register Report, revealing that default rates for letters of credit (L/Cs) are a little lower than those recorded in the 2018 report.

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US extends L/C support for agricultural exports

The US Department of Agriculture (USDA) is extending its support for the country's food producers by providing coverage for exports under sight letters of credit (L/Cs) without refinancing under the Commodity Credit Corporation's Export Credit Guarantee Programme (GSM-102).

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Giant Indian urea buyer says it may not be able to open L/Cs

Metals and Minerals Trading Corporation of India (MMTC) has said that it may not be able to obtain letters of credit (L/Cs) for purchases of urea from sellers.

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Indian court injunction on grounds force majeure caused by pandemic may be precedent for L/C guarantees

A court in Delhi has granted Halliburton Offshore Services of the US an interim injunction preventing the originally Indian natural resource giant Vedanta from invoking or encashing a bank guarantee on the grounds of force majeure created by the coronavirus lockdown.

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Singapore's largest bank's L/C exposure to troubled oil markets

Singapore's largest bank, DBS, has said that its oil and gas loans, which include a substantial number of letter of credit (L/C) backed loans, is the most exposed portion of its portfolio of loans to industries suffering severe difficulties as a result of the negative impacts of the coronavirus pandemic.

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L/C-focused Komgo looks to broaden its offerings as Citi increases its investment

Global banking giant Citi has increased its equity stake in Komgo, the trade finance platform that is currently focused on letters of credit (L/Cs), account receivables financing, and know-your-customer (KYC) processing.

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Lawyers advise on L/C issues for lessors in the transport leasing sector

Lawyers at the Asset Finance Group at Allen & Overy LLP have outlined some of the issues arising from the coronavirus pandemic that lessors with the benefit of security for unpaid rent or maintenance reserves in the form of a letter of credit (L/Cs) may face.

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How banks are going digital to manage covid-19

A collection of rapid response measures by trade finance banks to keep trade finance and trade flowing in the face of Covid-19.

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M&S offers suppliers L/C terms and vendor finance to minimise supply chain disruption

One of the UK's largest retailers, Marks and Spencer (M&S), is offering its garment suppliers letter of credit (L/C) terms and vendor financing in its efforts to minimise supply chain disruption caused by the coronavirus pandemic.

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L/Cs can now be frozen under Egypt's amended terrorism financing law

Letters of credit (L/Cs) used by individuals and entities in Egypt affiliated with terrorist groups can now be frozen after the Council of Ministers approved draft amendments to legislation on terrorist financing.

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Indian railway on a mission to convert SMEs to L/C terms

India's North Central Railway (NCR) has held a vendor meeting at its headquarters in Allahabad, a city in the state of Uttar Pradesh, to persuade its suppliers to use domestic letters of credit (L/Cs) when doing business with the railway company.

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More L/Cs expected post-lockdown to meet Indian demand for Chinese solar equipment

China-based manufacturers of photovoltaic solar (PV solar) equipment are increasingly moving to letter of credit (L/C) terms for sales of goods to India.

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RBZ's L/C support for grain insufficient to avert shortages

The Reserve Bank of Zimbabwe's (RBZ) promise of letters of credit (L/Cs) worth US$10 million to import grain from various African countries appears not to have helped sufficiently with the government's efforts to provide hard currency to avert severe grain shortages.

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ABN Amro files applications against Hin Leong for L/C related charges

ABN Amro Bank has lodged a claim against Hin Leong Trading, the Singaporean oil trading giant that has appointed advisors and filed for protection from creditors.

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L/Cs feature in Bank of Maldive's working capital facility

Letters of credit (L/Cs) feature in Bank of Maldives' (BML's) new unsecured Working Capital Finance (WCF) facility.

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Singapore's DBS Bank claims 'industry first' L/C financing on CamelONE's TFP

Singapore's DBS Bank claims it has closed another 'industry-first' with the completion of the first trade financing settlement through CamelONE's Trade Finance portal (TFP).

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Indian court rejects coronavirus impacts as force majeure on L/C obligations

Indian steel importers cannot declare force majeure based on the impacts of the coronavirus pandemic to block letters of credit (L/Cs) with South Korean suppliers, the Mumbai High Court has ruled.

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Advisors appointed after banks refuse new L/Cs for giant Singapore oil trader

Singaporean oil trader Hin Leong Trading has appointed advisors after suffering severe liquidity issues.

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EIB fund signs new pilot guarantee instrument with three banks in Bulgaria

A fund operated by the European Investment Bank (EIB) has signed three new guarantee agreements with Unicredit Bulbank, United Bulgarian Bank and ProCredit Bank (Bulgaria) to support fast-growing documentary finance activity in Bulgaria.

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S&P warns US municipalities not to forgo benefits of L/C backed issues

Municipalities in the US that issue letter of credit (L/C) backed variable-rate demand obligations (VRDOs) may lose the benefits provided by the L/C if they buy their own bonds according to S&P Global Ratings.

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Petsec challenges 'illegitimate' claim on Yemen L/C

Petsec Energy is disputing a claim against a US$4.2 million letter of credit (L/C) guaranteeing that the Australia-listed oil and gas explorer would meet its exploration obligations in Block 7 in Yemen.

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Egypt mulls 'at sight' L/Cs to allay fears of wheat shortages in coronavirus crisis

Egypt's General Authority for Supply Commodities (GASC) is considering paying for wheat at its next tender with 'at sight' letters of credit (L/Cs).

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Citi joins Contour trade finance network to develop digital L/Cs

Citi has joined the Contour trade finance network, increasing the number of banks that have invested in the network formerly known as Voltron as part of an industry-wide global collaboration effort.

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Government approval for state-owned banks to provide L/C guarantees for Sri Lankan Airlines

The government of Sri Lanka has approved a proposal for state-owned commercial banks, Bank of Ceylon and the People's Bank, to provide guarantees for letters of credit (L/Cs) required by Sri Lankan Airlines.

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Impacts of coronavirus on the L/C market

As coronavirus spreads across the world some of the impacts of the pandemic on letter of credit (L/C) business are emerging.

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EximBank India gets additional funds to provide L/Cs for export sales

Export-Import Bank of India (EximBank India) has received the equivalent of around US$195 million of additional state funding to help support Indian exports.

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Coronavirus and oil prices in freefall force Apache to post L/Cs to guarantee North Sea obligations

Apache Corporation has said it will post letters of credit (L/Cs) aggregating approximately US$650 million to guarantee it meets its asset retirement obligations in the UK's North Sea oil fields.

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Blockchain platform to improve access to L/Cs

A new blockchain platform for participants in the supply chain may provide traders with improved access to letters of credit (L/Cs) according to the developers, Distributed Ledger Technologies (DLT).

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Revise L/C requirements US broadband providers tell regulator

Seven associations representing US broadband providers have sent a letter to the Federal Communications Commission (FCC) urging it to revise the letter of credit (L/C) requirements proposed for the Rural Digital Opportunity Fund (RDOF).

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Sri Lanka limits L/C imports to prevent financial market panic due to coronavirus pandemic

The Central Bank of Sri Lanka (CBS) has introduced measures it says will ease the pressure on the exchange rate and prevent financial market panic due to the coronavirus pandemic.

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DBS completes first L/C financing on Singapore's NTP

Singapore's DBS Bank, in collaboration with Audi Singapore and Audi's local distributor, Premium Automobiles, have completed the first trade financing transaction on Singapore's Networked Trade Platform (NTP).

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Nigeria acts on L/Cs affected by coronavirus crisis, Indian bankers call for action

The Central Bank of Nigeria (CBN) has said it will guarantee letters of credit (L/Cs) from Nigerian banks during the coronavirus pandemic and has asked correspondent banks and creditors to Nigerian lenders not to panic over L/Cs and other obligations extended to Nigerian businesses.

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Nigeria commits further US$2.6 million for L/Cs in Chinese currency

The Central Bank of Nigeria (CBN) has committed a further 18 million yuan (US$2.6 million for renminbi-denominated letters of credit.

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Premier Oil locks horns with investor over L/C obligations

Premier Oil is locked in battle with its largest creditor, Asia Research and Capital Management (ARCM) over the London-listed oil company's plans to acquire further assets in the ageing UK North Sea and extend debt maturity.

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Clues indicate impact on L/Cs of coronavirus pandemic

The impact of the coronavirus pandemic on letter of credit (L/C) business is difficult to predict for several reasons. It is unclear how supply chains that L/Cs so often finance will be affected while trade finance flows are both inherently complex and extremely difficult to track and see on a global scale.

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More than US$1 billion of L/Cs in suspicious Lebanese transfers

Around US$1.3 billion of letters of credit (L/Cs) appear to have been used in suspicious hard currency transfers from accounts in Lebanon to several banks in Switzerland according to officials investigating reports that Lebanese politicians transferred billions of US dollars to foreign banks in 2019.

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Coronavirus outbreak impacts on L/C users

As the coronavirus outbreak continues to shake the global economy, concerns are growing amongst letter of credit (L/C) users as to how to cope with potential difficulties that may lie ahead.

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Blockchain L/Cs have facilitated trades during coronavirus disruptions

Blockchain enabled letters of credit (L/Cs) have helped sustain trading despite disruptions caused by the coronavirus outbreak a senior banking official has told the South China Morning Post.

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L/Cs and trade finance behind Stanbic Zambia's record earnings

Stanbic Bank Zambia, which claims to be the country's largest letter of credit (L/C) and guarantee provider, has recorded a profit after tax of 450 million Zambian Kwacha (K450 million - US$30.8 million).

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L/C support for troubled US boilermaker

Troubled US industrial boilermaker, Babcock & Wilcox Enterprises (B&W), has announced a refinancing package that includes improved letter of credit (L/C) availability.

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Bangladesh garment manufacturers seek L/C amendments to soften coronavirus impact

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked Bangladesh Bank (BB) for back-to-back letter of credit (L/C) procedures to be amended to help textile firms cope with the adverse impact of the coronavirus outbreak on their businesses.

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US coal miner pursuing blockchain innovation with Amazon for L/C transactions

Coal miner Contura Energy says it is pursuing blockchain-based innovation in partnership with an Amazon subsidiary to transform the way letters of credit (L/Cs) work for the company.

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Chinese steelmaker secures yuan denominated L/Cs for iron ore purchase

China's second largest steelmaker says it has secured two letters of credit (L/Cs) to purchase iron ore from Brazil's Vale in a 200 million yuan contract denominated in the Chinese currency.

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UK aid joins L/C interventions to help close Africa's trade finance gap

CDC Group, the UK's development finance institution (DFI), is expanding its trade finance offerings in Africa to help close the continent's trade finance gap.

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Partnership of ECI and HSBC includes focus on L/Cs for UAE exporters

Etihad Credit Insurance (ECI) has signed a memorandum of understanding (MoU) with HSBC to provide letters of credit (L/Cs) amongst a range of trade export finance and insurance solutions to give the country's exporters a platform for sustainable growth and development over the long term.

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Bolero launches Galileo platform with new L/C management features

Bolero International, perhaps now the most established of global trade finance digitisation providers, has launched its new Galileo platform.

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Doldrums in US shale gas market may lead to US$1.6 billion L/C posting

Shale gas giant EQT has warned that it may have to post US$1.6 billion in letters of credit (L/Cs) in the wake of its downgrade of debt to junk bond status.

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Contract fraud suspect who cashed L/C repatriated to China from Australia

A Chinese national who allegedly cashed in a letter of credit (L/C) but failed to meet his contractual obligations associated with it has been repatriated to China from Australia according to China's ministry of public security.

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L/C requirement stems failure of Indian power distribution companies to pay bills

An Indian government requirement that power distribution companies must put up letters of credit (L/Cs) to ensure that they pay power generators appears to be paying off.

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MUFG completes blockchain L/C transaction on komgo

Japan's MUFG Bank has completed its first live blockchain letter of credit (L/C) transaction on the komgo commodity trade finance platform.

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Tata Steel exempted from appearing in L/C fraud case

An Indian court has granted Tata Steel an exemption from appearing before a court in a case against the former promoters of Bhushan Steel, which was acquired last year by a Tata group firm.

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China's coronavirus lockdown prompts L/C concerns

China's coronavirus outbreak and lockdowns across the country have led to the prolonged closure of Chinese businesses, triggering concerns amongst banks and traders that letter of credit (L/C) obligations may not be met.

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Cancelled Europe-Asia sailings may make L/C obligations hard to meet

2M Alliance, the 10-year vessel-sharing partnership of shipping giants Maersk and MSC, has advised their North European customers that they have cancelled several Asia sailings in March. CMA CGM has also notified customers of void sailings.

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Fraudsters sentenced for wire fraud with fake L/Cs

A woman and two men have been sentenced in the US state of California to a 15 month jail term for their roles in a scheme that used fake letters of credit (L/Cs) to commit wire fraud.

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Pakistan eases L/C restrictions

State Bank of Pakistan (SBP) has allowed the country's banks to make advance payment of up to 50 per cent of the value of imports against letters of credit (L/Cs) for plant, machinery, spare parts and raw materials.

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Contour, formerly Voltron, goes commercial

The blockchain-based open industry platform formerly known as Voltron has been renamed Contour and has declared itself a fully commercial company based in Singapore.

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More L/Cs required if the UK leaves the EU with no deal

A British business leader believes that UK businesses will need to use more letters of credit (L/Cs) if the country leaves the European Union (EU) in December without a trade deal.

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India's state-run coal supplier extends L/C facility to smaller users

Coal India Limited (CIL) has relaxed its payment terms for supplying fuel to its smaller customers by making a letter of credit (L/C) facility available to them.

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China's central bank mulling digital L/C options

People's Bank of China (PBC) is reportedly considering trials of blockchain letter of credit (L/C) transactions.

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L/Cs and fair tariffs needed to back Indian wind power

Wind power producers in India want to see distribution companies forced to put up letters of credit (L/Cs) to guarantee that electricity generators are paid in full and on time for the power they produce.

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Bangkok Bank ready to roll out blockchain L/C offering

Bangkok Bank, the only Thai bank involved in the development of R3's Corda-powered Voltron platform to digitise letters of credit (L/Cs), is poised to offer its customers digital trade finance solutions.

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Nigeria injects 17.9 million yuan to support L/C business with China

Central Bank of Nigeria (CBN) has injected 17.9 million Chinese yuan (US$2.5 million) into the currency market to support letter of credit (L/C) business with China and reinforce the bank's efforts to keep the naira stable and prevent currency shortages.

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Nigeria's Keystone Bank to pay damages for failing L/C obligations

Nigeria's Keystone Bank has been ordered by a Nigerian court to pay China's Hexing Electrical damages of US$778,118 over a breach of contract.

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Angola's L/C requirements dent profits at African packaging giant

Angola's new letter of credit (L/C) requirements are a contributory factor in Africa's largest diversified packaging manufacturer suffering a full year loss.

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US Treasury looks to blockchain to improve L/C management

The US treasury department's Office of Financial Innovation and Transformation (OFIT) has announced a blockchain or distributed ledger technology (DLT) letter of credit (L/C) pilot proof of concept project.

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AfDB and ABSA agree facility to improve access to L/Cs

The African Development Bank (AfDB) has signed an unfunded US$250 million Risk Participation Agreement (RPA) facility with ABSA that should improve access to letters of credit (L/Cs) for companies in key strategic sectors.

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Emirates NBD's smartTRADE portal offers enhanced L/C offering

Dubai's largest bank, Emirates NBD, has launched a comprehensive suite of products and advisory services to support working capital requirements.

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HSBC reports blockchain L/C deals in the Gulf

HSBC says it has fully executed two blockchain letter of credit (L/C) transactions in the Gulf.

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Thai government to introduce blockchain L/C payment system

The Thai government is to introduce a scheme for letters of credit (L/Cs) issued by the state to be processed on a blockchain platform.

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Assets seized from alleged L/C fraudsters

Assets worth the equivalent of around US$7.8 million have been seized from a company based in the Indian state of Rajasthan under anti-money laundering law in an alleged bank loan fraud case that involved fake letters of credit (L/Cs), India's Enforcement Directorate (ED) has said.

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Blockchain L/C development key plank in Reliance Industries' strategy

Indian multinational conglomerate Reliance Industries has included the development of blockchain letters of credit (L/Cs) in its strategic plans.

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Chinese banks expanding blockchain trade finance offerings

Two of China's four major state-owned banks are expanding their separate trade finance blockchains internationally.

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L/Cs feature in trade finance funds that could help close the trade finance gap

Letters of credit (L/Cs) feature in the growing number of trade finance funds that are emerging to meet demand from institutional investors seeking attractive returns with low correlation to stocks or bonds.

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Lebanese government seeks new fuel importers as L/C shortage bites

The Lebanese government has invited new companies to tender for fuel imports after the companies currently prequalified to tender claimed they had not been able to obtain the letters of credit (L/Cs) they needed to pay for fuel.

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Egyptian banks start yuan-denominated business

Egypt's major commercial banks are now able to offer a range of Chinese currency transactions according the Economic and Commercial Counsellor's Office of the Chinese Embassy in Egypt.

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L/Cs may be insufficient for Asian oil and gas plant decommissioning costs

South East Asia has been producing five per cent of the world's oil and gas over recent years, with Myanmar, Thailand, Vietnam, Brunei, Malaysia and Indonesia in the forefront.

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BBVA includes L/Cs in expanded sustainable product range

Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) has included letters of credit (L/Cs) in its newly expanded environmentally friendly framework for sustainable transactional products.

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Lebanese potato farmers call for euro denominated L/Cs

Lebanese farmers are continuing to call for the Central Bank of Lebanon (CBL) to allow them to use euro denominated letters of credit (L/Cs) at a regular market rate to import potato seeds.

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L/C support features in McDermott's financial rescue

Troubled oilfield services firm McDermott International says it has entered into an agreement with certain of its secured lenders under which the company will have access to up to US$1.7 billion of additional financing, including letter of credit (L/C) capacity.

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L/Cs feature in VTB Bank's agreement with Afreximbank to boost Russia-Africa trade and investment

VTB Bank (Europe) has signed an agreement to participate in the African Export-Import Bank's (Afreximbank's) Trade Confirmation Guarantee Programme (TCGP).

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Nigerian airline boss fraudulently obtained L/Cs in bank fraud

The founder and chief executive officer of Nigerian airline Air Peace, Allen Onyema, has been charged in the US with money laundering and bank fraud.

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HSBC issues first Malaysian L/C on live blockchain

HSBC has completed what it claims to be the first letter of credit (L/C) pilot transaction on a live blockchain in Malaysia.

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Digital L/Cs feature in new mining technology platform

MineHub Technologies has completed development of its technology platform designed to improve efficiency in trading operations as well as environmental and social governance compliance in mining and metals supply chains.

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Michigan fraudsters used L/Cs in US$1.2 million fraud

Samuel Abraham, a resident of the US state of Michigan, has been sentenced to 10 years in prison for his roles in running an advanced fee scheme involving fake standby letters of credit (L/Cs).

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CCB launches new blockchain platform for L/Cs, factoring and forfaiting

China Construction Bank (CCB), the first in China to use blockchain for domestic letters of credit (L/Cs), has released the second version of its blockchain platform for trade finance.

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L/Cs play a part in collapse of China's largest rubber trader

Letters of credit (L/Cs) played an integral role in the financing strategy that appears to have caused the collapse of China's largest rubber trader.

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Nigerian milk importers must buy on L/C terms

Bankers in Nigeria say that the country's milk importers will have to open letters of credit (L/Cs) after the central bank ordered lenders to stop processing milk imports on a credit basis.

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Lebanon's central bank steps in to support essential imports on L/C terms

Lebanon's central bank is to facilitate access to US dollars for banks that issue letters of credit (L/Cs) for importers of essential products in response to serious concerns of a US dollar shortage and possible currency devaluation.

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Stanbic Bank Uganda agrees to implement Traydstream's L/C vetting platform

Stanbic Bank Uganda (SBU) is to implement Traydstream's platform that uses machine-learning and artificial intelligence (AI) with natural language processing to create intelligent pattern recognition that enables speedy verification of regulatory compliance.

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ITFA launches new MRPA guidelines, L/Cs included

The International Trade and Forfaiting Association (ITFA) has launched its new Unfunded Master Risk Participation Agreement (MRPA) and associated user guidelines, including for letters of credit (L/Cs) for use by its members.

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Ralph Lauren announces US$500 million facility to support L/C issuance

Ralph Lauren Corporation and some of its foreign subsidiaries have entered into a definitive agreement for a major revolving credit facility under which the global fashion house can issue letters of credit (L/Cs).

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Rio Tinto and Cargill report first paperless iron ore L/C transaction

Mining giant Rio Tinto and trader Cargill, supported by HSBC Singapore and BNP Paribas, have successfully completed the first fully integrated paperless letter of credit (L/C) transaction in iron ore.

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SoftBank looks to US$2 billion L/C facility in WeWork acquisition

Japanese conglomerate SoftBank is reportedly negotiating a US$2 billion letter of credit (L/C) facility to part-finance its acquisition of troubled shared workspace provider, WeWork.

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Construction company and Canadian power generator in L/C dispute

The Canadian subsidiary of Italian multinational major construction company, Astaldi, is asking a judge to throw out an order for C$437,000 (US$332,000) in legal fees to the Muskrat Falls Corporation, a subsidiary of provincial energy utility Nalcor.

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Courts to decide on collapsed Australian engineering firm's L/C obligations

Complications surrounding letters of credit (L/Cs) and bank guarantees will feature in court hearings in Australia to determine the extent to which non-secured creditors will be paid out of the proceeds of liquidated assets of collapsed engineering group RCR Tomlinson.

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Libyan fuel companies prefer profits from imports on L/C terms to domestic supplies

Libya's interior minister, Fathi Bashagha, is calling on the country's internationally recognised prime minister, Faiez Serraj, to end the virtual fuel monopoly held by Libya's four main petrol station operators.

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Standby L/Cs part of US$2.1 million based investment fraud involving former FBI agent

The US Securities and Exchange Commission (SEC) says an ex-Federal Bureau of Investigation (FBI) agent helped a businessman perpetrate a US$2.1 million fraudulent prime bank investment scheme in which investors' funds were supposedly backed by bank guarantees and standby letters of credit (L/Cs).

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ADCB says it is first UAE bank to complete end-to-end blockchain L/C transaction

The UAE's Abu Dhabi Commercial Bank (ADCB) says it has completed the country's first live blockchain end-to-end transaction in a digital process that mirrors traditional paper-based letter of credit (L/C) processing.

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Sberbank enhances online L/C facility

State-owned Sberbank of Russia has introduced a new feature on its remote banking service.

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Coal companies concerned about L/C availability

Coal companies are concerned that backing from insurance companies and letters of credit (L/Cs) required for operations in many jurisdictions will become increasingly hard to come by as environmental activists increase their efforts to deter financiers from backing the coal industry.

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L/Cs feature in Japanese banking partnerships in Africa

Some of Japan's leading banks have signed collaboration agreements with various African financial services providers with the aim of boosting Japanese trade and investment on the continent.

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Indian banks fear for maturing L/Cs after PMCB collapse

Banks in India are telling the Reserve Bank of India (RBI) that they are very concerned about the prospects for maturing letters of credit (L/Cs) issued by the failed Punjab & Maharashtra Co-operative Bank (PMCB).

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TradeSun to introduce AI to L/C processing

A new financial technology (FinTech) company has entered the trade finance market with a product that aims to improve letter of credit (L/C) processing.

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Former bank manager denies participation in US$2 billion PNB L/C fraud

Former Punjab National Bank (PNB) deputy manager Gokulnath Shetty is refusing to cooperate with the Indian authorities investigating his role in the US$2 billion letter of credit (L/C) and letter of undertaking (LoU) fraud at the bank, allegedly perpetrated by diamond merchants, Nirav Modi and his uncle, Mehul Choksi.

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Digital L/Cs for major Austrian banking group

Fintech specialist Intellect Global Transaction Banking (IGTB) has implemented its Digital Trade Finance (DTF) platform for two members of Austria's Raffeisen Banking Group, which in total comprises nearly 500 cooperative banks, most of which exclusively provide services within each Austrian state.

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Controversy over L/Cs for Ontario's second licensing round for cannabis retailers

The Canadian province of Ontario in August completed a second round of licensing recreational cannabis stores, with the aim of establishing 50 new retailers that would start trading as early as October.

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EGFI asks for authority to counter difficulties with L/Cs for Iran

The managing director of the Export Guarantee Fund of Iran (EGFI) has written to the Iranian president asking for more authority for the fund to step in to provide finance for traders unable to access letters of credit (L/Cs) due to US sanctions.

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L/C over Voltron platform features in first paperless iron ore transaction

Digital trade platform provider essDocs says it has completed the world's first integrated paperless iron ore trade transaction.

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Malta's IIG Bank expands L/C offering with Temenos solution

Temenos has announced that the Malta-based trade finance bank, IIG Bank, has gone live with its digital front office and core banking products, Infinity and T24 Transact respectively.

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Failure of Indian power companies to put up L/Cs deterring solar investment

India's solar power developers may be deterred from participating in state tenders because distribution companies are still not issuing letters of credit (L/Cs) as a payment security mechanism.

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Former CDB chairman investigated for L/C fraud

The former chairman of China's major state-owned bank responsible for raising funds for large-scale infrastructure projects, including the Three Gorges Dam and the Shanghai Pudong International Airport, is under investigation for letter of credit (L/C) fraud.

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HSBC reports first yuan-denominated blockchain L/C transaction

HSBC has completed the first blockchain or distributed ledger letter of credit (L/C) transaction in the Chinese currency.

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SME Protect aims to reduce UAE-based firms' L/C reliance

The UAE's federal export credit company, Etihad Credit Insurance (ECI), has launched a new specialised insurance cover for UAE-based companies involved in international trade.

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HSBC executes first blockchain L/C transaction in Korea and Vietnam

HSBC has executed its first blockchain-based letter of credit (L/C) transaction in Korea and Vietnam.

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Standard Chartered completes pilot blockchain L/C transaction for oil shipment

Standard Chartered says it has completed a pilot letter of credit (L/C) transaction on the Voltron distributed ledger or blockchain platform.

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Yes Bank launches facility to improve L/C access for MSMEs

India's Yes Bank is offering a new working capital facility that aims to make letters of credit (L/Cs) more available for micro-, small- and medium-sized enterprises (MSMEs).

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Continuing woes at CMIG add to concerns over Chinese L/C backed bonds

Continuing problems at China Minsheng Investment Group (CMIG) are adding to concerns over the use of standby letters of credit (L/Cs) to back Chinese bonds.

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Apogee failed to put up L/C for purchase of EFCO

Window and door company Pella Corporation is alleging that architectural glass and metal solutions provider, Apogee Enterprises, has failed to make payments for its purchase of manufacturer of architectural aluminium for commercial construction projects, EFCO, from Pella in June 2017. All three companies are US-based.

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L/C employed in innovative financing for East Harlem housing scheme

A letter of credit (L/C) has been used in an innovative financing package to fund affordable housing in the East Harlem district of New York.

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IFC launches initiative to improve L/C access for women

The International Finance Corporation (IFC) in partnership with Goldman Sachs has launched a programme aimed at improving access to letters of credit (L/Cs) and other trade finance instruments for women.

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World Bank's US$100 million for Angola includes L/C support

The World Bank has approved a US$100 million support package for Angola that includes a facility to improve the availability of import letters of credit (L/Cs).

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TangoTrade launches digital L/C alternative

TangoTrade has launched an assured payment solution that functions as a digital letter of credit (L/C) but does not require the participation of major banks.

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Etihad Credit Insurance and Emirates NBD agreement to improve L/C availability

The UAE's federal credit insurance company, Etihad Credit Insurance (ECI), has signed a memorandum of understanding (MoU) with the corporate banking division of Emirates NBD, that aims to improve access to letters of credit (L/Cs) for the bank's customers.

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Acciona and CaixaBank sign first green L/C in Europe

Infrastructure and renewable energy developer, Acciona, says it has arranged the first green letter of credit (L/C) in the European financial system with CaixaBank for a total of US$129 million.

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India introduces requirement for states to put up L/C guarantees for power producers

In an attempt to ensure timely payments by India's states to power generation utilities, the Indian government has made it mandatory for state electricity distribution companies to provide letters of credit (L/Cs) to guarantee they deliver the requirements specified in their power purchase agreements (PPAs).

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Standby L/Cs round tripped in Sterling Biotech fraud case

Sterling Biotech of India round-tripped standby letters of credit (L/Cs) to fraudulently finance its Nigerian oil operations according to India's Enforcement Directorate (ED).

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Alleged L/C fraudster Choksi faces extradition to India

Diamond merchant Mehul Choksi could soon be extradited to India to face charges related to the US$2 billion letter of credit (L/C) and letter of undertaking (LoU) fraud at Punjab National Bank (PNB).

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EBRD agrees L/C oriented trade finance programme in Ukraine

The European Bank for Reconstruction and Development (EBRD) says it has signed an agreement with Ukrgasbank of Ukraine worth a total of US$40 million to support Ukrainian businesses with the aim of stimulating regional and international trade.

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Voltron L/C platform successfully links with another blockchain platform

HSBC and UAE-based Landmark Group have completed a first of its kind transaction that connects two independently-built blockchain platforms.

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L/Cs employed in massive tax fraud

India's Goods and Service Tax (GST) Commission is clamping down on firms raising fake GST invoices and claiming input tax credit (ITC) from the government.

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L/C shortage may impede Libya's UN-recognised government's struggle

Banks reluctant to provide letters of credit (L/Cs) for Libya's businesses may be impeding the struggle of the country's UN-backed government in Tripoli against military commander Khalifa Haftar.

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Indian investigators close in on L/C fraudsters

India's Enforcement Directorate (ED) has conducted searches in several locations for evidence in support of allegations of letter of credit (L/C) fraud within or connected with the Varron Group.

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Fewer L/Cs help Lloyd's of London to ratings upgrade

S&P Global Rating has upgraded Lloyd's of London, the global insurance market that services over 200 countries and territories, to stable from negative.

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Bangladesh Supreme Court jails alleged L/C fraudster

A Dhaka court has sent Hallmark Group Chairman Jasmine Islam to jail in a case involving the alleged embezzlement of the equivalent of millions of US dollars through a fake letter of credit (L/C).

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L/C to guarantee Egypt will pay fine for stopping gas exports to Israel

A letter of credit (L/C) from Egypt's central bank is to guarantee that the country delivers on its obligations under a new settlement of a long running dispute over Cairo's ending of exports of gas to Israel.

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US sanctions halt L/Cs for Indian imports of Iranian crude

A lack of letter of credit (L/C) availability is preventing India receiving shipments of Iranian crude oil out of Chabahar Port in southeast Iran.

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Trusts a cheaper option than L/Cs for captive insurers

Captive insurance companies - insurers that are wholly owned and controlled by their insureds - are paying over the odds for their collateral arrangements due to an inertia when it comes to exploring the use of captive collateral trusts instead of letters of credit (L/Cs) according to an industry expert.

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L/Cs may play a role in US opioid epidemic cases

Speculation is growing about the role letters of credit (L/Cs) may play in an anticipated slew of lawsuits anticipated as some of the US' largest pharmaceutical firms and their owners face massive fines for their part in the country's devastating opioid epidemic.

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Conventional L/C wins Energy Risk Award

A financing that was rescued at the eleventh hour by a conventional letter of credit (L/C) has been declared deal of the year for North America at the Energy Risk Awards 2019.

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More than 30 consortia working on blockchain applications

More than 30 consortia comprising mainly financial institutions are working on blockchain applications according to a recent report published by Trade Finance Global (TFG).

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Captive insurers replacing L/Cs with surety bonds

Commercial entities are starting to see surety bonds as an attractive alternative to traditional letters of credit L/Cs according to the Insurance Business magazine.

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Petrobras says bonded storage will improve L/C terms for Chinese refiners

Brazil's Petrobras expects to be able to offer improved letter of credit (L/C) terms to Chinese refiners once its deliveries of crude cargo to bonded storage facilities begin.

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Iran ready to draw on US$2.4 billion Chinese L/C for high-speed railway

Iran Railways has a US$2.4 billion letter of credit (L/C) ready to be drawn upon for work on the high-speed rail line between Tehran and Isfahan, the deputy dead of Iran Railways has announced.

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International trade tensions good for L/C business

Banks' revenues from international trade finance fees are in the best shape for years due to increasingly volatile cross-border trade relations that are driving traders towards letter of credit (L/C) terms according to Coalition, a banking-industry data tracker.

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Centralised KYC database could save L/C providers millions of US dollars each year

The majority of respondents surveyed for BNY Mellon's new global paper, Overcoming the Trade Finance Gap: Root Causes and Remedies, said that centralised know-your-customer (KYC) databases would hold the most value in reducing trade finance rejection rates and closing the trade finance gap.

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Advertising agency wants US$3 million L/C from US gun lobby

The advertising agency that represents the US' National Rifle Association (NRA) says the non-profit organisation that lobbies for gun rights must post a US$3 million letter of credit (L/C) within days.

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Newly launched Visa B2B Connect can support L/C transactions

Global payments specialist Visa has launched the Visa B2B Connect network, a cross-border B2B (business-to-business) payments network that enables financial institutions to quickly and securely process high-value corporate cross-border payments globally.

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Afreximbank opens opportunity for increased L/C access for Comoros

The African Export-Import Bank (Afreximbank), which provides a range of letter of credit (L/C) offerings, is in discussions to provide financing for transactions valued at about US$100 million in Comoros, the bank's president Benedict Oramah says.

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L/Cs remain low risk says ICC Trade Register report

The International Chamber of Commerce (ICC) Banking Commission has released its 2018 Trade Register report.

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ICC WCF issues guidelines for certificates of origin used in L/C transactions

The International Chamber of Commerce (ICC) World Chambers Federation has launched a revised version of its International Certificate of Origin (CO) Guidelines that include advice on certificates used in many letter of credit (L/C) transactions.

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Banka OTP Albania signs up to EBRD's trade facilitation programme

The European Bank for Reconstruction and Development (EBRD) says it has signed two agreements with Banka OTP Albania worth a total of EUR 60 million (US$67.2 million) to support small- and medium-sized enterprises (SMEs).

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New UK pension rules could be opportunity for L/C providers

New accounting rules in the UK could leave pension schemes for companies on the London Stock Exchange £100 billion (US$127 billion) worse off.

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L/Cs failing to solve Zimbabwe's fuel shortages

Zimbabwe is continuing to issue letters of credit (L/Cs) for fuel imports, but these appear not to be alleviating the country's fuel shortages nor solving importers' problems paying foreign suppliers.

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Conflict has the potential to stop Libya's L/C flows

Libya's banks may no longer be able to process payments or issue letters of credit (L/Cs) to import the essential goods on which the country is highly dependent if the current political and military conflict continues between the Tripoli-based government and east-based military forces.

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Preferential L/Cs for essential imports into Egypt

Egypt's importers will be able to obtain letters of credit (L/Cs) at preferential exchange rates for essential goods during June according the country's finance ministry.

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L/Cs for Cuba increasingly hard to come by for US exporters

Farmers and agribusinesses in the US are finding it increasingly difficult to arrange letters of credit (L/Cs) for sales to Cuba.

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Electronic L/Cs essential for Attijariwafa Bank-Egypt's growth strategy

Electronic letters of credit (L/Cs) are an essential component in Attijariwafa Bank-Egypt's target to attract 70 new credit customers with loans exceeding 3 billion Egyptian pounds (E£3 billion - US$176 million) by the end of this year according to the bank's corporate banking director, Tamer Ragheb.

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Banking Regulation and the Campaign to Mitigate the Unintended Consequences for Trade Finance: A Milestone Report

ICC Banking Commission's report assesses the next steps for ensuring that regulation does not hinder the availability of trade finance and remains relevant in a digital landscape.

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Iran to fill the L/C gap caused by US sanctions

Iran "will fill the gap" caused by US sanctions that severely limit the country's access to letters of credit (L/Cs) according to chairman and chief executive officer of the Export Guarantee Fund of Iran EGFI, Afrooz Bahrami.

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Indian investigators press fresh case against diamond trade L/C fraudster

India's Central Bureau of Investigation (CBI) has registered a fresh case against absconding diamond dealer Jatin Mehta, his company Winsome Diamonds and Jewellery and a Jordanian national, Hathyam Salman Ali Obaidah.

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Japanese prosecutors say Saudi businessman provided Ghosn with US$20 million and L/C

Japanese prosecutors have amended one of their indictments against former Nissan Motors chairman Carlos Ghosn, alleging that he received US$20 million from Saudi Arabian businessman, Khaled Al Juffali.

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Florida court dismisses Fluor's "wrongful" L/C claim

A court in the US state of Florida has dismissed Fluor Enterprises' claim that Duke Energy wrongfully drew down a US$67 million letter of credit (L/C) issued in connection with Fluor's construction of a gas-fired electrical generation facility in Citrus County, Florida.

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Albania withdraws PSA after oil firm fails to put up L/C guarantee

A Canadian oil company has had its licence to produce oil withdrawn for failing to produce the letter of credit (L/C) the Albanian government wanted to guarantee that work specified in its licence would be completed.

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Voltron L/C consortium swells to more than 50 banks

Blockchain letter of credit (L/C) application consortium Voltron has grown to include more than 50 banks and corporates following the completion of trials.

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Colombian oil exploration L/C dispute finally settled

Range Resources has announced that a court in Colombia has finally approved the settlement of a dispute over letters of credit (L/Cs) and work commitments in the country.

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HSBC in 'unusual' L/C deal with controversial UK businessman

HSBC has entered into an 'unusual' loan deal with Arcadia, the UK-based retail group owned by Philip Green.

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L/Cs feature in ADB's new US$100 million facility for Pacific island renewables

The Asian Development Bank (ADB) has approved an umbrella facility of up to US$100 million to provide financing support for letters of credit (L/Cs), loans and guarantees to overcome constraints to private sector investment in renewable power projects in Pacific island countries.

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Controversial L/C-backed bond may benefit investors

Letter of credit (L/C) backing for a bond may help contain a debt crisis at one of China's best known private equity houses, but it appears to justify long held concerns about lenders providing Chinese L/C backed bonds.

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Yemen's central bank announces greater L/C availability

Yemen's central bank in the southern port of Aden says it is ready to supply commercial and Islamic banks with additional foreign currency.

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South Africa's FNB to offer Sharia compliant L/Cs

One of South Africa's 'big five' banks says it will offer Sharia compliant letters of credit (L/Cs) alongside several more new Islamic banking offerings.

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New UK-based trade bank to provide L/C offerings

British industrialist Sanjeev Gupta's GFG Alliance has completed the acquisition of Diamond Bank UK.

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Sri Lanka aims to improve credit system liquidity by scrapping L/C margin on cars

Sri Lanka's credit system liquidity is expected to receive a boost after cash tied up in import letters of credit (L/Cs) for cars was released into the banking system according to the governor of the Central Bank of Sri Lanka.

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essDOCS agrees to partner for Voltron's blockchain L/C application

Paperless trade solutions provider essDOCS has entered into an agreement to integrate its CargoDocs Doc Ex solution into the blockchain-based Voltron application. Voltron, which is developed on R3's Corda platform, provides a multi-bank channel for companies to digitally manage the issuance of letters of credit (L/Cs) and electronic presentation of trade documents, including title documents such as bills of lading (B/Ls).

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Supply chain financing replacing L/Cs at Tom Tailor

German integrated lifestyle clothing company Tom Tailor has used its environmental, social and governance (ESG) framework to introduce supply chain financing solutions to replace the letters of credit (L/Cs) it used to rely on in transactions with suppliers and distributors.

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Zimbabwe's central bank and oil producers at odds over L/C availability

Zimbabwe's cooking oil producers and the country's central bank governor appear to be at odds over whether foreign currency and letters of credit (L/Cs) are available for the raw materials the manufacturers need.

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L/C offerings help banks win Asiamoney's Middle East Awards

Excellent delivery of letter of credit (L/C) offerings has been a factor behind several banks doing well in Asiamoney's Middle East Awards, 2019.

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Update to The Wolfsberg Group, ICC and BAFT Trade Finance Principles

Since the publication of the joint 2017 Wolfsberg Group, ICC and BAFT Trade Finance Principles, much has happened in the way of discussion and cooperation between various industry groups in the space of financial crime related to trade finance. This updated edition has been expanded to offer more detail around what is meant by various risk mitigation activities.

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Sberbank writes first Islamic L/C as it mulls Gulf expansion plans

Sberbank has announced its first ever Sharia compliant letter of credit (L/C) as it looks to expand its Islamic financing offerings in the Gulf region.

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The legal status of electronic bills of lading

The ICC Banking Commission conducted a survey on the legal status of eB/Ls when converted from an electronic record. This report sets out the relevant issues found and the results of the survey, which covered ten jurisdictions.

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Ethiopia and World Bank study to allow foreign banks to ease L/C woes

The government of Ethiopia has launched a study assisted by World Bank experts with the aim of liberalising the country's financial system.

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Calgary replaces L/Cs with Development Surety Bonds for property developers

The City of Calgary has substantially replaced the requirement for property developers to put up letters of credit (L/Cs) to guarantee they fulfil their construction contracts and associated obligations with a Development Surety Bond (DSB).

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Indian Banks' Association seeks clarification on L/C treatment under new guidelines

The Indian Banks' Association (IBA) is still seeking clarification on how to treat letters of credit (L/Cs) and bank guarantees under the country's new banking guidelines.

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Wool industry's first blockchain L/C transaction

Australian wool exporter Fox & Lillie and HSBC say they have completed the first Voltron blockchain network transaction with a digitised letter of credit (L/C) between Australia and China for a wool shipment.

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Recreational cannabis retailers in Canada face L/C draw down

Recently licensed recreational cannabis retailers in Ontario are facing a draw down on letters of credit (L/Cs) for failing to open bricks-and-mortar stores in the Canadian province.

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UAE partnership to enhance L/C offerings

The UAE's Etihad Credit Insurance (ECI) has partnered with First Abu Dhabi Bank (FAB), to cooperate in developing enhanced letter of credit (L/C) and other trade finance offerings.

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Egypt reintroduces L/C terms for wheat imports

Egypt will go back to paying its grain suppliers on letter of credit (L/C) terms with payment within 180 days instead of immediately according to a government source.

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China Banking Association presses ahead with blockchain L/C applications

The China Banking Association (CBA) has launched a blockchain-based trade finance platform with the aim of improving the efficiency of Chinese trade finance.

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Citi shelves bank-backed cryptocurrency plans to focus on blockchain L/C applications

Citigroup has quietly shelved its plans for a bank-backed cryptocurrency but remains keen to pursue the use of blockchain applications in other areas according to Citi's global head of innovation for treasury and trade solutions, Gulru Atak.

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Bank of China to issue renminbi L/Cs in Sri Lanka

Bank of China (BoC) has said it will issue renminbi-denominated letters of credit (L/Cs) from a growing number of branches in Sri Lanka.

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L/Cs to help operationalise Sri Lanka's green vehicle tax

Sri Lanka will use letters of credit (L/Cs) opened for imported automobiles to provide incentives for buyers of electric vehicles and disincentives for purchasers of hybrid fossil fuelled-electric vehicles.

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Fugitive jeweller faces extradition from UK to India to face US$2 billion L/C fraud charges

Fugitive Indian celebrity jeweller Nirav Modi, wanted for his part in an alleged US$2 billion fraud in which he employed fraudulently obtained letters of credit (L/Cs) and letters of undertaking (LoUs), is facing legal proceedings in Britain to extradite him from there back to India.

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CBA launches software to comply with new SWIFT L/C messaging protocols

Norwegian software vendor Commercial Banking Applications (CBA) says it has released a new user-friendly solution to comply with the SWIFT electronic messaging platform's new letter of credit (L/C) requirements.

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HSBC seeks South Korean partners for blockchain L/C project

Global bank HSBC is seeking to forge ties with South Korean banks to launch a blockchain platform enabling companies to process and settle their invoices for trade efficiently, according to Korean press reports.HSBC is looking to commercially launch the Voltron platform in a project that began within the R3 blockchain consortium that aims to resolve issues of time-consuming processes and faulty documentation associated with paper-based letters of credit (L/Cs).

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L/C processing times to blame for Zimbabwe's fuel shortages

Zimbabwe's central bank governor has blamed the time taken to arrange and execute letter of credit (L/C) transactions for fuel shortages and prices hikes while fuel consumption in the country is 20 per cent less than normal.

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L/C settlements behind Angola's import debt reduction

Angola's debt related to imports of goods amounted has reduced significantly according to the head of the country's central bank, José de Lima Massano.

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Increased L/C volumes underline trouble at Tesla

After year full of regulatory fights, several executive departures and a volatile share price, suppliers are increasingly asking for letters of credit (L/Cs) if carmaker Tesla is the buyer.

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Tanzania still waiting for L/C in controversial cashew nut deal

Tanzania is still awaiting payment for the equivalent of US$180 million for 100,000 tonnes of cashew nuts the government controversially agreed to sell to a Kenya-based company, Indo Power, in a deal signed in Arusha in January.

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Kenya looks to L/Cs to guarantee oil and gas levies

Kenya is looking to ask oil companies to put up standby letters of credit (L/Cs) to guarantee the firms pay surface and training levies to the government.

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New investors for VAKT's blockchain platform to replace L/Cs

Vakt, a company aiming to modernise commodity trading by blockchain, has announced it has received investment from three new strategic investors.

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HSBC Philippines launches L/C tracking service

HSBC's unit in the Philippines has said it is ramping up its digitisation efforts to be more cost-effective and has launched a tracker that allows customers online access to their letter of credit (L/C) transactions.

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Tanzanian MP wants L/C issuing bank in controversial cashew nut deal named

An opposition member of parliament (MP) in Tanzania, Zitto Kabwe, has called on the Bank of Tanzania to publicly name the bank that issued a letter of credit (L/C) that facilitated a controversial sale of Tanzanian cashew nuts to a buyer in Kenya.

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Fluor takes Duke Energy to court in L/C dispute

Fluor Enterprises has alleged in a federal court in the US state of Florida that Duke Energy wrongly tapped a US$67 million letter of credit (L/C) that was issued in the event of a power generation facility not being completed.

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UAE export credit agency to provide L/C support through Standard Chartered

Etihad Credit Insurance (ECI), the UAE's federal export credit agency, has signed a memorandum of understanding (MoU) with Standard Chartered Bank (StanChart) to provide what they say will be seamless access to letter of credit (L/C) and other trade credit solutions and funding for UAE businesses.Under the MoU, StanChart and ECI will collaborate to support UAE-based exporters through various financing and funding solutions.

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Incomeland to launch bank-free LC Lite

The founders of global invoice finance provider Incomlend are launching a blockchain-based letter of credit (L/C) platform.

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SWIFT announces partnership with blockchain L/C specialist R3

Financial messaging service SWIFT has said it has entered into a partnership with R3, a leading consortium amongst several initiatives developing blockchain platforms for trade finance operations.

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Thailand's LH Bank expanding L/C operations

Thailand's LH Bank has announced that it is intent on substantially expanding its letter of credit (L/C) and other trade finance operations in response to the continued growth of the country's exports and imports.

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Low risk L/Cs an investment opportunity for institutional investors

Low risk letters of credit (L/Cs) and other trade finance offerings provide untapped opportunities for institutional investors according to Cerulli Associates.

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Five banks stand to lose US$762 million if Californian utility declares bankruptcy

Five banks that put up letters of credit (L/Cs) to guarantee municipal debt issued on behalf of the Pacific Gas and Electric Company (PG&E) may lose US$762 million if the utility is declared bankrupt.

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Electronic bill of lading enhances L/C and guarantee issuance

Pacific International Lines (PIL) has used an electronic bill of lading (e-BL) built on the IBM Blockchain Platform in a successful real-time pilot tracking of a shipment of mandarin oranges from China to Singapore.

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Devaluation of Bangladeshi currency would put pressure on L/Cs

Sustained high demand for US dollars by commercial banks in Bangladesh is putting pressure on the currency, prompting some experts to suggest that the taka should be devalued.

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Oil majors move closer to commercial blockchain-based L/Cs

Oil majors Chevron and Total as well as Indian refiner Reliance Industries, have joined and invested in the Vakt blockchain-based global commodities platform.

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More than US$400 million of L/Cs due, but Pakistan State Oil financing plan delayed

Pakistan State Oil (PSO) has around US$408 million of letter of credit (L/Cs) obligations due to its suppliers.

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L/Cs feature in Texas wind farm financing

Letters of credit (L/Cs) are a key feature in the financing of the 300 megawatt (MW) Ranchero Wind Farm project in Crockett County in the US state of Texas

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Zimbabwe's central bank agrees to guarantee L/Cs to avoid manufacturing catastrophe

The government of Zimbabwe has approved an emergency US$400 million credit facility for manufacturing companies so they can continue to import critical raw materials.

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India rejects Iran's request for Indian banks in Tehran, L/C arrangements already sufficient

India is reported to have rejected a request by the Iranian government to approve the opening of branches of Indian banks in Tehran.

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HSBC reports settlement of more than US$250 billion DLT transactions

HSBC says it has settled more than US$250 billion in transactions using distributed ledger technology (DLT).

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Japan receives regulatory clearance for L/Cs for Iranian oil

Japan's leading banks will be able to issue letters of credit (L/Cs) for Iranian oil transactions after receiving final regulatory clearance.

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FinTech startup Ripple counts L/C specialist amongst latest haul of customers

Financial technology (FinTech) startup Ripple says it has acquired another 13 customers for its RippleNet global payment network, including letter of credit (L/C) specialist Euro Exim Bank.

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Senior official denies L/C bias at Yemen's divided central bank

A central banker in Yemen has denied claims that letters of credit (L/Cs) for much needed food imports to alleviate widespread hunger in the country divided by war are only available in certain areas.

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Blockchain L/Cs amongst key trends in marine transportation

Global technology research and advisory company Technavio has published a report highlighting the penetration of blockchain technology in marine transportation as one of the key trends in the global refrigerated sea transportation market.

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ICICI Bank digitises L/Cs in Trade Online revamp

India's ICICI Bank has announced that it has revamped its Trade Online platform for export and import transactions by introducing an array of new digital services on it, including online letter of credit (L/C) offerings.

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Saudi businessman helped obtain L/C for ousted Nissan chairman

New misconduct allegations brought by Japanese prosecutors say that someone helped the sacked Nissan chairman Carlos Ghosn obtain a letter of credit (L/C) to help bail him out of financial difficulties.

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Primechain launches blockchain platform for L/C issuance and sharing

Blockchain start-up Primechain Technologies has launched a platform that it claims enables the issuance and sharing of letters of credit (L/Cs) in a secure and confidential manner.

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Chinese battery firm fails to issue L/Cs to renege on contract with Glencore

A Chinese battery firm has simply failed to issue letters of credit (L/Cs) to renege on a three-year contract to buy cobalt hydroxide from miner-trader Glencore.

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L/C to feature in Ghana's renegotiated deal with Ameri Energy

The Ghanaian government has renegotiated a controversial power purchase agreement (PPA) between Ghana and Africa and Middle East Resources Investment Group (Ameri).

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Interpol issues Red Corner notice against billionaire alleged L/C fraudster

International police organisation Interpol has issued a Red Corner notice against absconded billionaire diamond trader Mehul Choksi who is accused of cheating state-run Punjab National Bank (PNB), allegedly in collusion with his nephew, celebrity jeweller, Nirav Modi.

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Foreign banks refusing L/Cs for transactions with Nicaragua

Foreign banks are refusing to accept letters of credit (L/Cs) for transactions involving Nicaragua according to the president of the country's Consultants for Business Development group, Nestor Avendano.

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Forensic auditor to investigate L/C related allegations at ICICI Bank

India's ICICI Bank is expected to appoint a forensic auditor to probe allegations of improper use of letters of credit (L/Cs).

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L/C fraudster sentenced to 23 years in prison

The man at the centre of the 2014 Qingdao metal warehousing scandal in China that had the impact of making letters of credit (L/Cs) much harder to come by for commodity traders in the region has been jailed.

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Corporation Bank officials under investigation for L/C fraud

Two officials at India's Corporation Bank have been arrested and two more are reportedly under investigation in a fraud case involving letters of credit (L/Cs).

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Region's largest L/C confirmation for Iraqi power project

Trade Bank of Iraq, Standard Chartered and General Electric (GE) have closed what they claim to be the region's largest letter of credit (L/C) confirmation of its kind.

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Digital L/C features in blockchain based crude sales platform

A digital letter of credit (L/C) provided by the Komgo financing platform is to feature in crude oil deals conducted on a live blockchain-based platform called Vakt that recently went live.

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Chinese bank brings L/Cs to Tanzania and beyond

China Dasheng Bank Limited (CDBL) has become the latest bank to provide letters of credit (L/Cs), guarantees and other trade finance services in Tanzania and beyond.

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Libyan L/Cs beginning to flow again

Letters of credit (L/Cs) for Libya's formal economy are beginning to flow again according to the deputy prime minister of the UN-backed Libyan government, Ahmed Maiteeg.

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L/C specialist Stern Bank to establish trade finance team in London

Puerto Rico based Stern Bank is expanding its operations by opening a trade finance operation in London.

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CDC to put US$100 million into Afreximbank's trade programme

The African Export Import Bank (Afreximbank) and the UK's development finance institution, CDC Group, have signed a US$100 million participation agreement to support the bank's Trade Facilitation Programme.

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Zambian ministers at odds over lack of L/Cs causing fuel shortage

Fuel shortages in Zambia have been blamed on a lack of foreign exchange for letters of credit (L/Cs), but the Zambian finance minister says there is no longer an L/C shortage.

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HSBC claims ground breaking transaction validates blockchain in L/C deals

HSBC India and ING Bank Brussels have successfully executed a blockchain enabled, live trade finance transaction incorporating a letter of credit (L/C) jointly with Reliance Industries and Tricon Energy.

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Blockchain system to detect fraud could have prevented Modi's US$2 billion L/C fraud

SWIFT and financial technology company, MonetaGo, are to collaborate to develop a blockchain system to help Indian banks prevent fraud.

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BNP Paribas and HSBC complete landmark digitised L/C transaction

BNP Paribas and HSBC Singapore have completed Singapore's first fully digitised end-to-end letter of credit (L/C) transaction between two different companies.

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No L/Cs for four days for FAB customers

Letters of credit (L/Cs) will not be available for four days from First Abu Dhabi Bank (FAB) as it shuts down for four days later this month.

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L/C flows resume in Myanmar

Private and state banks in Myanmar have once again begun offering letters of credit (L/Cs), raising hopes the country's trade finance operations are reviving.

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SWIFT to suspend access to Iranian banks

The SWIFT financial messaging service has said it will suspend access for at least some Iranian banks.

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NR Capital chooses Chinsay's to digitise L/Cs and other supply chain processes

Singapore based NR Capital, which offers an alternative to traditional balance sheet lending to small- and medium-sized enterprises in the bulk commodity market sector, says it will implement Chinsay's Contract Management Platform to digitalise the process of drafting, issuing and validating commodity contracts.

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Doha Bank asset swaps follow curtailing of L/C business between Qatari banks and those in Saudi-led bloc

Qatar's Doha Bank has cut its exposure to the UAE banking system through an asset swap with UAE banks amid strained relations between the two countries, according to the Reuters news agency.

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Coinsilium inks advisory partnership with L/C start-up

Coinsilium Group, which describes itself as a blockchain venture builder, advisor and investor, has signed an advisory partnership agreement with LC Lite, a firm developing a letter of credit (L/C) platform that aims to connect buyers and suppliers on a single online system.

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Blockchain-based eTrade Connect platform to reduce L/C fraud

A new blockchain-based trade finance platform developed by HSBC, Standard Chartered and 10 other banks, aims to reduce the risk of fraud in letter of credit (L/C) transactions.

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R3 and eight banks launch Voltron blockchain L/C platform

Eight banks and blockchain technology specialist R3 have launched a new initiative named Voltron that initially aims to use blockchain technology to bring significant efficiencies to transacting letters of credit (L/Cs).

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Deutsch Bank and Standard Bank cooperate in L/C-based programme for US exports to Africa

Deutsche Bank and Standard Bank of South Africa have signed a memorandum of understanding (MoU) to closely cooperate under the US government's programme designed to encourage exports of certain US agricultural output to eligible emerging markets.

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National Bank of Canada trials blockchain standby L/Cs

National Bank of Canada (NBC) has collaborated with ICT and business consulting services firm CGI and blockchain technology start-up Skuchain on a pilot programme aimed at improving and streamlining the processes for negotiating standby letters of credit (L/Cs) and guarantees.

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Trade Information Network to accelerate digitisation of trade finance

Global banking giants have joined forces to create the Trade Information Network, which they say will accelerate the digitisation of traditionally paper-based processes, including letters of credit (L/Cs) and provide trade finance needs currently unmet in the early links of the supply chain.

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L/C examination leads to ICICI Bank bringing court action against diamond dealers

ICICI Bank of India has filed a petition in a US court against 11 executives of Mumbai-based diamond company Shrenuj and Co for allegedly defrauding the bank.

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Eight-year sentence for fraudster who promised valuable L/Cs

A UK-based man who fraudulently purported he could provide valuable standby letters of credit (L/Cs) has been jailed for eight years.

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ExWorks presents solution for fully leveraged firms to obtain L/Cs

The managing director of non-bank provider of domestic, import, and export trade finance products, ExWorks, says his firm can help companies finance their supply chains even when they have insufficient balance sheet strength to open letters of credit (L/Cs).

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Union Bank launches Nigeria's first domestic L/C

Nigeria's Union Bank has launched what it calls a local letter of credit (L/C) at a trade finance conference for its corporate customers in Lagos.

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Small US town an L/C away from grocery store

A small town in the US state of Kansas is a letter of credit (L/C) away from having its own grocery store for the first time in 17 years.

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Sri Lanka imposes L/C requirement for specific goods

Sri Lanka's central bank has imposed a requirement that importers of certain goods must buy on letter of credit (L/C) terms.

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ICC agreement with GCD to extend Trade Register coverage

The International Chamber of Commerce's (ICC's) Banking Commission has announced a long-term agreement with Global Credit Data (GCD), to provide more granular data and help extend the coverage of the ICC Trade Register beyond the trade finance products traditionally included in the register such as letters of credit (L/Cs).

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India's CBI unearths round-tripping L/C fraud

India's Central Bureau of Investigation (CBI) has uncovered an alleged letter of credit (L/C) fraud involving Chennai-based SLO Industries and Aran Steels.

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Afreximbank presents new trade facilitation programme

The African Export-Import Bank (Afreximbank) is presenting its new trade facilitation programme, developed in response to the retreat of global banks from Africa's financial sector, a process also called de-banking.

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Digital L/C features in new commodities blockchain platform

Fifteen of the world's largest institutions, including banks and trading firms are launching a blockchain-based platform that promises to feature digital letters of credit (L/Cs).

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Sri Lanka imposes 100 per cent margin deposit on L/Cs for motor vehicles

The Central Bank of Sri Lanka (CBSL) has imposed a 100 per cent margin deposit requirement against letters of credit (L/Cs) opened at commercial banks for imported motor vehicles.

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R3 to launch Voltron blockchain L/C in 2019

Financial innovation company R3 says its Voltron blockchain platform for letters of credit (L/Cs) will go into production in 2019.

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Blockchain L/C alternatives will benefit smaller businesses

Global management consultancy Bain & Co has published a report suggesting that smaller businesses will benefit most if they migrate from doing business on letter of credit (L/C) terms to using facilities available on trade finance platforms based on blockchain or distributed ledger technologies.

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UN failing to curb Libyan L/C abuse

A senior commander in Libya's Anti-Terrorism Force has criticised the work of the United Nations Support Mission in Libya (UNSMIL).

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Indonesia may employ L/C requirement to prop up currency

Indonesia may introduce new letter of credit (L/C) requirements alongside new rules for commodities exporters to guarantee funding for shipments through Indonesian banks or branches of foreign banks in the country, trade minister Enggartiasto Lukita has said.

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L/Cs next for blockchain startup CargoX

CargoX says it is planning to launch a blockchain letter of credit (L/C) following the successful trial of a bill of lading executed on the Ethereum blockchain platform.

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Angola plans eight foreign exchange auctions to improve import L/C availability

The National Bank of Angola (BNA) is conducting eight foreign exchange auctions in September to make euros available for letter of credit (L/C) transactions.

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Indonesia to insist on L/Cs for fuel imports as government seeks to support the rupiah

Indonesia wants the country's power generators and refineries to pay for imports on letter of credit (L/C) terms as part of the government's efforts to reduce imports and support the flagging rupiah.

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Turkey bids to convert defence L/Cs from US dollars to lira

Turkey is looking to renegotiate its defence contracts so that letter of credit (L/C) and other future obligations are denominated in Turkish lira rather than US dollars.

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L/C abuses a key factor in India's significant increase in bank frauds

The Reserve Bank of India (RBI) has reported a quantum leap in bank frauds in the 2017-18 financial year.

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US banks non-committal over Washington's new sanctions on Iran

Two of the largest US financial institutions are reportedly not committing to cutting Iranian access to international letter of credit (L/C) markets by banishing Iran from the SWIFT messaging network.

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Redwood Markets and EH Energy to deliver L/C alternative to the LNG industry

Redwood Markets and One Source Risk Management have chosen EH Energy, a division of Euler Hermes North America Insurance, to lead a syndicate of underwriters to handle trade credit insurance for the liquefied natural gas (LNG) market through its online trading platform, the Redwood Marketplace.

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Blockchain solution may offer L/C alternative in UAE

Standard Chartered has announced that it is working with Siemens Financial Services on blockchain-based bank guarantees that could provide an alternative for letters of credit (L/Cs) for traders in the UAE.

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Weak demand for Saudi L/Cs as tax reforms bite

Plummeting values of letter of credit (L/C) openings are pointing to a substantial weakening of Saudi Arabia's economy.

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L/C-based infrastructure financing product now available outside the US

Specialist Australian finance house Crossway Capital says it has developed a letter of credit (L/C) based structured finance product for major infrastructure projects that has hitherto only been available in the US.

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Sri Lanka uses L/Cs in drive to cut emissions

Sri Lanka is using letters of credit (L/Cs) to ensure that imported used vehicles meet the country's new emission standards.

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Nigeria creates special window for renminbi denominated L/Cs

The Central Bank of Nigeria (CBN) has created a special window making funds available for renminbi denominated letters of credit (L/Cs).

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Mastermind of US$2 billion L/C and LoU fraud located in Britain

The UK authorities have confirmed that celebrity Indian jeweller Nirav Modi, who allegedly used letters of credit (L/Cs) and letters of understanding (LoUs) to defraud India's Punjab National Bank (PNB) of US$2 billion, is in their country.

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Deepening US-Turkey trade war fears prompt L/C shortages, precipitate free fall in DDGS market

The deepening trade war between the US and Turkey is making it hard for Turkish importers to raise the letters of credit (L/Cs) they need to buy distillers dried grains with solubles, better known as DDGS, from US suppliers.

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US trade restrictions compromise Turkey's L/C availability, steelmakers defiantly turn to Asia

Banks are reportedly becoming increasingly reluctant to write letter of credit (L/C) business for transactions between Turkish sellers and western buyers of steel following Washington's decision to double tariffs on steel and aluminium imports from Turkey and threats from US President Donald Trump's of more punitive sanctions to come.

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PNB may close Hong Kong branch in wake of L/C and LoU fraud

India's Punjab National Bank (PNB) is likely to shut down its Kowloon branch in Hong Kong in the next few days according to local media there.

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G-NEXID members agree reciprocal L/C arrangements

The Global Network of Export-Import Banks and Development Finance Institutions (G-NEXID) met recently in Geneva to discuss how member states could collaborate to close the trade finance gap.

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Currency swap deal will boost L/Cs for China-Nigeria deals

The currency swap deal between China and Nigeria is expected to boost letter of credit (L/C) transactions between the two countries according to a Nigerian business leader.

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RBI told to rescind ban on L/Cs for trade credit

A parliamentary committee has said the Reserve Bank of India (RBI) should rescind its decision to discontinue the issuance of letters of credit (L/Cs) and letters of undertaking (LoUs) for trade credit.

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L/Cs supporting Africa's Trade and Development Bank's growth

Africa's Trade and Development Bank (TDB) wants to position itself as a key regional financial institution to complement the activities of other development finance institutions on the continent such as the African Development Bank and East African Development Bank according to Uganda's finance minister, Matia Kasaija.

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India's banks say no to L/Cs for tea exports to Iran

Prices of Indian tea, much of which is exported to Iran, have fallen 9.1 per cent year-on-year as India's banks increasingly turn down requests for rupee-denominated letters of credit (L/Cs) for trades with Iran, according to the Indian Tea Association (ITA). The association's chairman blames uncertainty about trade with Iran after President Donald Trump pulled the US out of a 2015 nuclear pact with Iran and ordered new US sanctions on Tehran.

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HKMA's new blockchain-based platform set to replace L/C transactions

A new blockchain-based trade finance platform to be developed by the Hong Kong Monetary Authority (HKMA) will eventually provide an alternative to letters of credit (L/Cs) for traders looking for secure open account transactions.

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Turkey says L/Cs for Iran will keep flowing

Turkey appears determined to keep writing letter of credit (L/C) business with Iran despite tougher sanctions imposed on the Islamic Republic by Washington.

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L/Cs start to flow as Ethiopia reforms

Ethiopia's radically reformist new prime minister is introducing policies that appear to be allowing letters of credit (L/Cs) to flow after years of traders being unable to obtain them due to foreign currency shortages.

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Blockchain platform for Chinese L/C auctions

A state-backed financial asset exchange in China's Chongqing city is looking to develop a blockchain solution that could be used for letter of credit (L/C) auctions.

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Libya faces L/C corruption probe

Libyan officials who have been profiting from letters of credit (L/Cs) obtained to manipulate the official and black market exchange rates could be subject to a wide-ranging corruption probe.

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China-US trade war signals bad news for L/C flows

Banks that finance trade in Asia are concerned that the tariff war between the US and China will put further pressure on revenues from their letter of credit (L/C) and wider trade finance operations.

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Angola's L/C funds used for foreign currency sale instead

The National Bank of Angola (NBA) has carried out a euro currency sale using funds earmarked just a month ago for import letters of credit (L/Cs).

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Afreximbank's US$8 billion in a year for L/Cs and trade finance

The African Export Import Bank (Afreximbank) has disbursed over a third of the US$25 billion facility that provides letters of credit (L/Cs) to facilitate intra-African trade, the bank's president and chairman has said.

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Three Indian firms charged over L/C frauds against SBI

India's Central Bureau of Intelligence (CBI) has charged three Mumbai-based firms for cheating State Bank of India (SBI) using letters of credit (L/Cs).

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Large-scale solar project finance features L/C backing

Canada's Innergex Renewable Energy is using a letter of credit (L/C) in the financing package it has arranged for its 250 megawatt photovoltaic solar project that, when completed, will be the largest of its kind in the US state of Texas.

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L/Cs for Indian gold loans must be rigorously checked

National Institution for Transforming India (Niti) is proposing a new policy that would relax the stringent collateral conditions for loans and letters of credit (L/Cs) to jewellers to buy gold.

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Bangladeshi banker says L/C business is booming

Letter of credit (L/C) business is booming for private banks in Bangladesh according to a senior banker.

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OFAC announces wind-down date for Iranian L/C business

The US treasury department's Office of Foreign Assets Control (OFAC) has issued a notice of amendments to US institutions using letters of credit (L/Cs) in transactions with Iran.

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Ecobank Zimbabwe reports L/C successes

Ecobank Zimbabwe has written over US$150 million worth of letter of credit (L/C) business in the Zimbabwean market in the last eight months according to the bank's chairman.

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Whistleblower accuses ICICI Bank of ill advised L/C issuance and round-tripping

A whistleblower has accused India's ICICI Bank of issuing hundreds of letters of credit (L/Cs) to entities related to its troubled corporate borrowers to help them avoid defaulting on their loans according to local media reports.

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Zambia bans L/Cs and guarantees for bankrupt state-owned enterprises

Zambian President Edgar Lungu has ordered several austerity measures, including a ban on the issuance of letters of credit (L/Cs) to some state-owned enterprises, in an attempt to address Zambia's sharply deteriorating debt crisis.

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Angola's central bank governor recommends L/Cs for imports

Letters of credit (L/Cs) look likely to become the preferred financial instrument for imports into Angola according to the head of the country's central bank.

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Bangladesh extends scope of tax on L/Cs, reduces tax rate

The government of Bangladesh has proposed extending the coverage of advance income tax (AIT) on domestic letters of credit (L/Cs) or any financing agreement for purchasing goods

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China CITIC Bank reports on blockchain-based L/C transactions

China CITIC Bank says that during its 2017 financial year it facilitated blockchain-based domestic letter of credit (L/C) transactions worth a total of US$156 million.

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UK business chamber's certification indicates blockchain L/Cs soon

A UK based business chamber has certified an export consignment from an engineering company using blockchain.

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Red Corner Notice issued by Indian investigators of Nirav Modi L/C and LoU fraud

India's Central Bureau of Investigation (CBI) has asked Interpol to issue a Red Corner Notice against absconded celebrity jeweller, Nirav Modi, who Indian investigators want to question in relation to the US$2 billion banking scam involving Punjab National Bank (PNB).

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L/C data indicate sharp rise in imports in Bangladesh

Data on letters of credit (L/Cs) indicate that imports into Bangladesh surged 15 per cent to about US$43 billion in the 10 months to end-April 2018.

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Kenyan government should use L/Cs to support local SMEs

Kenya's culture of late payments is preventing businesses - especially small- and medium-sized enterprises (SMEs) - from investing in growth and contributing to economic recovery according to a director of Sphere Business Africa.

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Afreximbank to support L/Cs for Angolan imports

The African Export-Import Bank (Afreximbank) is to support trade finance facilities for Angola to import essential items on letter of credit (L/C) terms. The facilities are part of up to US$2 billion in financing support to Angola.

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L/Cs for Iranian crude harder to come by

Letters of credit (L/Cs) for Iranian crude for European deliveries are becoming harder to secure, oil traders have told energy information provider Platts.

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Central Bank of Libya governor questions Audit Bureau's L/C related corruption allegations

Central Bank of Libya (CBL) governor Al-Siddiq Al-Kabeer has ordered a financial committee tasked with tracking money laundering to investigate allegations made by the Audit Bureau accusing firms of using letters of credit (L/Cs) in foreign currency smuggling operations.

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Nigeria moves closer to renminbi-denominated L/Cs

The Central Bank of Nigeria (CBN) is set to release the framework for the currency swap deal it agreed recently with China to formally launch transactions in each country's currency.

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PNB bankers misled India's central bank over L/Cs and LoUs in US$2 billion fraud case

Senior officials at India's Punjab National Bank (PNB) misled the central bank in late 2016 over the bank's handling of the SWIFT financial messaging system in respect of letters of credit (L/Cs) and letters of undertaking (LoUs) employed in India's largest ever fraud.

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Bank of India recovers US$1.35 billion from standby L/Cs

Bank of India (BOI) says it has recovered the equivalent of US$1.35 billion from standby letters of credit (L/Cs) issued by other banks.

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Banks agree to launch China's first blockchain L/C

Bank of Shanghai and China Construction Bank have signed an agreement to launch China's first blockchain-based letter of credit (L/C).

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PNB bankers misled India's central bank over L/Cs and LoUs in US$2 billion fraud case

Police have accused senior officials at Punjab National Bank (PNB) of misleading India's central bank in late 2016 over the lender's handling of the SWIFT financial messaging system in respect of letters of credit (L/Cs) and letters of undertaking (LoUs) employed in the country's largest ever fraud.

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India's Infosys blockchain trade finance network will cut out L/C fraud

India's second-biggest software services company says its recently launched blockchain-based trade finance network would avoid the recent spate of letter of credit (L/C) and letter of undertaking frauds.

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Oil trader files suit against Union Bank Nigeria for failing to meet L/C obligations

The Nigerian affiliate of a pan-African oil trader has filed a US$18.6 million lawsuit against Union Bank of Nigeria (UBN).

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PTTPM first Asean firm to use artificial intelligence in L/C processing

A unit of Thailand's majority state-owned oil and gas company, PTT, claims to have become the first Asean firm to use artificial intelligence (AI) in letter of credit (L/C) processing.

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HSBC and ING execute first commercial blockchain L/C transaction

HSBC and ING have executed their first commercial letter of credit (L/C) transaction based on blockchain or distributed ledger technology.

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Islamic Development Bank Group provides L/C support for Bahrain Middle East Bank

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of Jeddah-based Islamic Development Bank Group, has said it will support letter of credit (L/C) transactions in which Bahrain Middle East Bank (BMEB) participates.

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English appeal court upholds Chinese arbitration award in L/C dispute

The English Court of Appeal has upheld the enforcement of a China International Economic and Trade Arbitration Commission (CIETAC) award in favour China-based steel supplier Sinocore and dismissed an appeal from an earlier UK Commercial Court decision in favour of a UK-based buyer, RBRG Trading.

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Eurasian free trade zone and talks between Moscow and Tehran signal more local currency L/Cs

More letters of credit (L/Cs) in national currencies are in prospect with the signing of an initial agreement for a free trade zone between Iran and the Eurasian Economic Union (EAEU).

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Nepalese traders must transact with China and India on L/C terms

Nepalese traders will soon have to start using letters of credit (L/Cs) when buying from or selling to traders in China and India.

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Turkey and Iran commence own currency L/C transactions

Turkey and Iran have issued the first letter of credit (L/C) using their own currencies.

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Punjab National Bank will honour foreign L/Cs

India's state-owned Punjab National Bank (PNB) has issued a statement saying it will honour all foreign letters of credit (L/Cs) as well as inter-bank letters of undertaking (LoUs) issued by it that mature on or before 31 March 2018.

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Commonwealth launches L/C support facility

The Commonwealth of Nations has launched a new trade finance facility that will provide support for letters of credit (L/Cs) in 31 smaller countries.

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Privatisation is not the answer to India's L/C problems

Privatising state-owned banks will not restore confidence in letters of credit (L/Cs) issued by India's banks according to a professor at the National Institute of Public Finance and Policy.

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Indian power promoters failed to meet L/C obligations

India's Central Bureau of Investigation (CBI) and the Gujarat Anti Terrorist Squad have arrested three promoters of Vadodara-based Diamond Power Infrastructure (DPI) in connection with a US$400 million bank fraud.

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Alleged L/C fraudsters face fresh charges

Three men in the US state of New Jersey are facing fresh charges relating to alleged letter of credit (L/C) frauds.

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L/Cs unscathed in Iran's cash crisis says CBI governor

Iran's government is sparing no efforts to contain a currency crisis after the rial hit an all-time low.

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Range Resources and Colombia finally settle dispute over work fulfilment and L/C validity

Australia's Range Resources says it has reached an agreement with Colombia's National Hydrocarbons Agency (NHA) to settle all outstanding claims and disputes between NHA and the consortium of Optima Oil Corporation and the company.

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Fraud case will make L/Cs harder to come by for India's SMEs

The US$1.9 billion fraud unearthed at India's second-largest public sector bank will make letters of credit (L/Cs) harder to come by and more expensive for small- and medium-sized enterprises (SMEs) according to India Ratings and Research.

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Libya's L/C policy under fire

Libya's policy on letters of credit (L/Cs) has come under fire from a member of the country's Presidential Council (PC), the body formed to run the country under the terms of the UN Security Council endorsed Libyan Political Agreement.

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Domestic L/Cs could play a bigger role as protectionism bites and regionalism grows

Domestic letters of credit (L/Cs) could play a bigger role in trade finance as buyers increasingly look for shorter supply chains according to head of global traditional trade products at HSBC, Vinay Mendonca.

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Funding sought for blockchain L/C alternative for Asian SMEs

Singapore-based fintech startup Acudeen is seeking to raise money to provide small- and medium-sized enterprises (SMEs) with what it claims will be a viable alternative to letters of credit (L/Cs).

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L/C could provide evidence in Nawaz Sharif trial

A letter of credit (L/C) could prove instrumental in proving that Pakistan's former prime minister Nawaz Sharif and some of his family used trade-based money laundering techniques to shift illicit funds around the world.

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Moody's says trade finance gap could limit Africa's new free trade area

Africa's massive trade finance gap amounting to US$90 billion is among the major limitations to the continent realising the full potential of a free-trade area in Africa, Moody's has warned.

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US lawyer warns of upcoming L/C risks for US companies

A US lawyer has warned that regulations expected to be introduced by Washington will require US companies to meet a higher burden of proof than big banks in litigation and that L/C risks will be transferred from banks to companies.

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Kenya's energy regulator set to cut L/C margins

Banks in Kenya look set to earn lower fees from letters of credit (L/Cs) opened by oil product importers.

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Jewellery trade frauds may be boosting L/C business

Reports are emerging in India that the use of letters of credit (L/Cs) may be increasing, despite them being used in high profile fraud cases in the jewellery trade.

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Look out circulars issued against alleged L/C fraudsters

India's Central Bureau of Investigation (CBI) has issued look out circulars (LOCs) against the directors of Delhi-based diamond jewellery exporter Dwarka Das Seth International.

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L/Cs underline Egypt's credit expansion

Increased volumes of letters of credit (L/Cs) are an integral part of evidence of an increase in lending by Egyptian banks in 2017 according to data released by the Central Bank of Egypt (CBE).

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Contradictory views on L/Cs and trade finance in 2017

Two apparently contradictory reports have emerged on the amount of trade finance business written in 2017.

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Indian banks warned again not to overreact to L/C scandal

The Associated Chambers of Commerce and Industry of India (Assocham) is continuing to lobby for business-as-usual for banks writing letter of credit (L/C) businsess despite their use in high profile trade-based money laundering cases in the diamond trade.

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UN says Libyan banks received illegal L/Cs worth one billion US dollars

Ten Libyan companies based in the Tripoli suburb of Tajoura received US$1 billion in illegal letters of credit (L/Cs) from two banks according to a UN report.

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South Korea decides not to prosecute KEB Hana Bank for issuing L/C to daughter of corrupt presidential confidante

South Korean prosecutors have decided against pressing charges against a commercial bank for issuing a letter of credit (L/C) to the 19-year old daughter of Choi Soon-sil.

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ICC declares L/Cs lowest risk of all trade finance offerings

Trade and export finance products are low credit risk offerings compared with similar asset classes according to the International Chamber of Commerce's (ICC's) latest survey.

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Improved Iranian credit rating will help reduce L/C costs

Iran's steady climb up the credit risk-rating index is helping to reduce letter of credit (L/C) costs according to an Iranian business leader.

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Banks back out of L/C provision for vintage tankers

Banks are backing out of the market to provide letters of credit (L/Cs) in deals in which ship owners sell older tankers to ship breakers according to a prominent shipbroker.

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HSBC readies itself to launch live trade finance blockchain transactions

HSBC is nearly ready to write live trade finance business based on blockchain technology with clients.

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New case of L/C fraud revealed at Punjab National Bank

One of the largest branded jewellery retailers in the world is under investigation for letter of credit (L/C) fraud.

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Indian business leaders calls for preservation of L/C flows as more frauds emerge

Trade-based money laundering linked to letters of credit (L/Cs) is hitting the headlines in India as new fraud cases emerge in the wake of the Punjab National Bank (PNB) alleged fraud case involving jeweller Nirav Modi's diamond dealings.

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Ten law firms sign up to R3's new centre of blockchain excellence

Ten law firms have signed up to the Legal Centre of Excellence (LCoE) launched by R3, the financial blockchain coalition intent on faster and more accurate letter of credit (L/C) processing and other financial sector blockchain applications.

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Will Reserve Bank of India change its position on L/Cs?

In a July 2015 directive, the Reserve Bank of India (RBI) asked banks to honour their letter of credit (L/C) commitments, even in unauthorised transactions. The central bank said failing to honour L/C commitments could affect the image of the banking system as well as L/Cs and other guarantees as payment mechanisms.

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L/Cs feature in US$1.7 billion diamond scam

Letters of credit (L/Cs) are embroiled in the massive bank fraud in the Indian diamond sector that was revealed last week when Punjab National Bank (PNB) said it had fallen victim to what is at least a US$1.7 billion scam linked to celebrity jeweller Nirav Modi (DC World News, 16 February 2018).

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Punjab National Bank fraud similar to L/C centred Winsome Diamond Group scam

India's Punjab National Bank (PNB) has revealed a massive US$1.7 billion fraud linked to celebrity jeweller Nirav Modi.

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Prominent role for L/Cs in Bank of India's third-quarter losses

Letters of credit (L /Cs) feature prominently in the causes of Bank of India's (BoI's) losses in the quarter ending December 2017.

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New partnership to embed blockchain in L/C processing

The Blockchain in Transport Alliance (BTA) is teaming up with the Wall Street Blockchain Alliance (WSBA) to facilitate the use of blockchain or distributed ledger technology (DLT) in letter of credit (L/C) processing and international trade.

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Deadline looms for participants in ICC's flagship trade finance survey

The deadline for participating in the International Chamber of Commerce (ICC)'s Banking Commission's flagship trade finance survey is looming.

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Libya to clear L/C backlog as economic prospects brighten

Libya's fragile internationally recognised government in Tripoli has given the country's central bank until the end of February to clear the backlog in letters of credit (L/Cs) to importers approved by the economy ministry in 2017.

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Former Morgan Stanley advisors used clients' money to back L/C for wind farm

Two former Morgan Stanley advisors used clients' money to back a letter of credit (L/C) for a wind farm project.

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South East Asian trade finance house and UK L/C specialist join forces to extend global reach

Standby letter of credit (L/C) specialist Bachmann and Welser Capital of the UK and Blend Financial Services of India, a provider of trade finance, corporate and financial advisory services, have signed a memorandum of understanding (MoU) to extend their global reach.

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Oil trader that refused L/C must pay hefty settlement

A Pakistan based oil marketing company that refused to put up a letter of credit (L/C) for an oil shipment has agreed to an out of court settlement with its Dubai based supplier.

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Lack of L/Cs forces PDVSA to alternative financial solutions

Petróleos de Venezuela S A's (PDVSA's) difficulties obtaining letters of credit (L/Cs) have forced the state owned oil company to look at alternative financial solutions.

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L/C specialist issues fraud warning

A specialist letter of credit (L/C) provider has issued a statement warning people of an individual who uses the firm's name to perpetrate frauds.

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First blockchain L/C transaction for agricultural commodities

Dutch and French banks as well as one of the world's largest agricultural merchants have completed what they say is the world's first foodstuff transaction to use the distributed ledger-based digital technology known as blockchain.

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Tax increases for L/Cs in the Philippines

Stamp tax on letters of credit (L/Cs) in the Philippines has doubled as it brings in a radical new taxation system.

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Brexit will impact on L/C usage

A leading consultant in Irish and international trade says trouble is in store for European suppliers selling to British small- and medium-sized enterprises (SMEs) that over recent years have switched from letter of credit (L/C) terms to alternative forms of trade financing such as factoring.

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Turkey and Iran strike deal for local currency L/C business

The central banks of Turkey and Iran have reached agreement on the amount they are prepared to make available to facilitate letter of credit (L/C) transactions in their respective currencies.

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Pakistan's L/C restrictions appear to be helping the economy

Pakistan's imposition of a 100 per cent margin deposit requirement on the opening of certain import letters of credit (L/Cs) appears to be contributing to the country's improved economic outlook.

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Equity Bank wins recognition for L/C provision that helps close the trade finance gap

Kenya's Equity Bank has won recognition for its letter of credit (L/C) services from a leading policy expert.

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Pakistan ready for yuan-denominated L/C business

The State Bank of Pakistan (SBP) has announced that all arrangements for using the Chinese currency for yuan-denominated L/C business are already in place.

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Infosys subsidiary's new blockchain product features L/C solution

A subsidiary of technology and consultancy giant Infosys has launched a blockchain-based trade finance solution that includes letter of credit (L/C) management features.

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Central Bank of Libya denies favouritism and nepotism in L/C issuance

The Central Bank of Libya (CBL) has denied charges of favouritism and nepotism in the way it issues letters of credit (L/Cs).

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US Commercial Service finds solution to Kenyan importer's L/C difficulties

The US Commercial Service has helped a Kenyan importer obtain the letter of credit (L/C) it needed to import equipment required to develop its geothermal energy resources.

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L/C ban may be failing to dampen Nigeria's rice imports

The refusal of the Central Bank of Nigeria (CBN) to grant letters of credit (L/Cs) to the country's rice buyers has failed to dampen imports according to a trade organisation.

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Bank Mellat reports surge in L/C business

Iran's Bank Mellat has reported a steep rise in the amount of letter of credit (L/C) business it has written now that many international sanctions imposed on the country have been lifted.

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Venezuelan crude exports hit 14-year low as L/C shortage bites

Venezuela's crude oil exports continue to be depressed by difficulties experienced by US refiners obtaining the letters of credit (L/Cs) they need.

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Indian onion exports must be on L/C terms

India has imposed a minimum export price (MEP) of US$850 per metric tonne on onions until the end of 2017.

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Mastermind of Iran's largest ever L/C fraud given a 20-year prison sentence

The former head of Iran's largest state-owned bank, who forged letters of credit (L/Cs) to buy a string of companies in the largest embezzlement scandal the Islamic republic has ever seen, has been given a 20-year prison sentence.

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Survey reveals low take up of digital L/Cs and trade finance services

Despite the wide publicity given to the digitalisation of letters of credit (L/Cs) and other digital trade finance services, a surprisingly low proportion of the more than 7,000 respondents in Euromoney's annual trade finance survey are actually using new technologies.

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UK court changes law on debts under L/Cs

The UK's Supreme Court has allowed an appeal that has changed English law on the location of debts in the context of letters of credit (L/Cs).

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Bangladesh reports all-time high L/C openings

The value of letters of credit (L/Cs) opened in Bangladesh in November reached an all time high of US$16.33 billion according to Bangladesh Bank data.

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BBVA and Wave carry out first blockchain-based L/C transaction between Europe and Latin America

Multinational Spanish banking group BBVA, in collaboration with technology firm Wave, has carried out its first blockchain based letter of credit (L/C) transaction between Europe and Latin America.

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L/C support in Afreximbank's extensive new guarantee facility

The African Export-Import Bank (Afreximbank) has expanded its range of trade finance products by launching a new guarantee programme for letter of credit (L/C) and other financial instruments.

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Trade Bank of Iraq opens in Abu Dhabi

The bank established in 2003 with the initial purpose of providing letters of credit (L/Cs) to help Iraq rebuild its economy after the fall of Saddam Hussein's regime has opened a representative office in Abu Dhabi.

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Reserve Bank of Zimbabwe working on new L/C facility

The Reserve Bank of Zimbabwe (RBZ) is working on a new US$150 million letter of credit (L/C) to support key industries.

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Singapore's United Overseas Bank introduces robots to its L/C workforce

United Overseas Bank (UOB) has introduced two robots, Amy and Eve, to the bank's corporate and retail units.

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PDVSA's L/C woes worsen

Sanctions imposed by Washington on Venezuelan state-run oil company Petroleos de Venezuela S A (PDVSA) are continuing to affect its US refining unit, Citgo Petroleum.

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New L/C guarantee facility for African renewable power developers

The German development bank, KfW, and the African Trade Insurance Agency (ATI) have announced a new facility to support renewable energy projects in sub-Saharan Africa.

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Libya's L/C strategy falls short of objectives

Libya's strategy of using letters of credit (L/Cs) to stabilise exchange rates and curb inflation appears not to be achieving its objectives.

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Progress on Project Ubin's efforts to harness blockchain for L/C and other banking services

The Monetary Authority of Singapore (MAS), the city-state's de facto central bank, has released a new report focused on the second phase of its Project Ubin blockchain initiative.

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Indian businessman remanded in L/C fraud case

A businessman has been remanded in custody by Indian police on suspicion of involvement in a case involving a fraudulent letter of credit (L/C).

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Iran and Turkey scale up local currency L/C arrangements

Iran and Turkey have appointed banks to facilitate improved letter of credit (L/C) availability for bilateral transactions under their preferential trade agreement (PTA).

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L/C demand underlines credit growth in Bangladesh

Demand for letters of credit (L/Cs) is underlining substantial growth in private sector credit in Bangladesh.

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Demands for L/Cs a challenge smaller US wind power developers

Utilities in the US demanding letters of credit (L/Cs) from firms building wind power generators are proving a challenge for smaller developers according to an industry expert.

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Infrastructure developer employs L/C availability in marketing drive

One of the Philippines' largest infrastructure investment companies is employing letters of credit (L/Cs) in its drive to secure high-value toll road projects in Southeast Asia.

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Afreximbank president calls for more intra-African L/C business

The president of the African Export-Import Bank (Afreximbank) is calling on African banks to reduce their reliance on European counterparties in letter of credit (L/C) transactions.

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L/C issuing banks sought to help delayed Kenyan geothermal project

Commercial banks have been invited to submit proposals to act as the letter of credit (L/C) issuing bank for Kenyan geothermal power plants as part of the developers' efforts to make progress in a much delayed project.

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Accuity's financial crime screening for R3's L/C processing platform

Compliance software provider Accuity has partnered with financial innovation company R3 to integrate its financial crime screening tools with the Corda distributed ledger technology platform.

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CGI Group and three banks establish proof of concept for blockchain L/C processing

Information technology and business process services provider, CGI Group, along with the Bank of Montreal, Royal Bank of Canada, and Mitsubishi Financial Group say they have successfully completed a first-ever proof of concept (POC) that successfully demonstrated streamlined letter of credit (L/C) and other trade finance processes on a blockchain platform.

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African banks face additional L/C pressures

African banks wanting to write letter of credit (L/C) business will come under additional pressure next year with the introduction of International Financial Reporting Standard (IFRS) 9 in January.

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Political tensions restraining L/Cs for trade between Iran and the UAE

The unwillingness of the UAE's banks to write letter of credit (L/C) business for trade with Iran is a product of political tensions between the emirates and the Islamic Republic according to a senior Iranian business figure.

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Suppliers' insistence on L/C terms underlines concerns for old-established US department stores

Suppliers of Bon-Ton Stores are insisting on payment by L/C or cash on delivery as the US department store chain that opened its first outlet in 1898 struggles with debt.

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Suppliers' insistence on L/C terms underlines concerns for old-established US department stores

Suppliers of Bon-Ton Stores are insisting on payment by L/C or cash on delivery as the US department store chain that opened its first outlet in 1898 struggles with debt.

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Four banks sign up to IBM-led platform to replace paper-based L/Cs

Four major banks have joined a trade finance initiative that aims to provide a digital alternative to paper-based letters of credit (L/Cs) in trade finance transactions.

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R3 launches distributed ledger platform and teams up with Bolero

Software developer R3 has launched version 1.0 of its Corda distributed ledger platform that could be critical for the development of digital letters of credit (L/Cs) based on the system originally developed for crypto-currencies.

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Trade finance volumes down, but L/Cs performing well

Global trade finance revenues have reached a seven-year low, with a 5 per cent decline year-on-year for the first half of 2017 according to a recent report.

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Confusion over L/Cs adds to ferry muddle in Trinidad and Tobago

Confusion over the status of standby letters of credit (L/Cs) is complicating Trinidad and Tobago's efforts to strengthen its so-called sea bridge, the vessels that ferry passengers and goods between the two islands.

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Westpac New Zealand sues former executive who allegedly falsified information to obtain L/C facilities

Westpac New Zealand is suing a second former senior executive of Lane Walker Rudkin (LWR), the Christchurch based clothing company that controversially collapsed in 2009.

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Austrian and Danish banks to boost L/C availability for trade with Iran

Iran's Central Bank has announced that several Iranian banks have signed two separate financing deals with an Austrian and a Danish bank.

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Zimbabwean business leader calls for more central bank supported L/Cs for soybeans

The president of the Oil Expressers Association of Zimbabwe (OEAZ) is calling for more letters of credit (L/Cs) in support of soybean imports.

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Caution increasingly prompting East European suppliers to ask for L/C terms

A report by credit insurer Atradius reveals that despite a positive economic outlook, many Eastern European companies expect deteriorating payment practices amongst their business partners.

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Alliance with Kyriba to strengthen GTC's guarantee, L/C and documentary collection services

GlobalTrade Corporation (GTC), which provides a range of letter of credit (L/C) and other trade finance services, has forged an alliance with cloud-based treasury and financial management solutions provider, Kyriba.

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New sanctions on Venezuela impact on L/Cs for US refineries

Recent sanctions imposed by Washington on Venezuelan state-run oil company Petroleos de Venezuela S A (PDVSA) have started to affect its US refining unit, Citgo Petroleum.

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Mashreq establishes position in the Nepalese L/C market

Mashreq Bank of the UAE says it is providing extensive support for banks writing letter of credit (L/C) business in Nepal.

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China's credit rules driving steel mills away from L/C terms

China's increasingly stringent credit rules are driving smaller steel mills away from buying iron ore on letter of credit (L/C) terms.

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Brighter prospects in Egypt for L/C business

Egypt has cleared a multibillion-dollar backlog of foreign currency requests from importers and foreign companies since floating the pound in November 2016, according to a central bank official.

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Central Bank of Iran presents post-sanctions L/C growth

The Central Bank of Iran (CBI) has announced that the country's banks have engaged in foreign exchange transactions worth over US$38 billion since international (but not US) sanctions were lifted in January 2016 after the Islamic Republic scaled back its nuclear ambitions.

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Utility of blockchain in L/C transactions under challenge

Several blockchain-based proofs of concept (PoCs) and prototypes for letter of credit (L/C) processing have been announced over the last year.

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Dubai bankers accused of forging L/Cs

Three Dubai bankers have been accused of accepting US$10 million in bribes for forging letters of credit (L/Cs) attributed to their former employer, HSBC.

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Billion-dollar L/C for Iranian gas refinery

A US$1 billion letter of credit (L/C) from Bank Sepah is backing one of Iran's largest industrial projects.

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Tougher new US sanctions impact on L/C business

The US has signed into law the Countering America's Adversaries Through Sanctions Act (CAATSA).

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Rosneft steps in to buy Venezuelan oil as US banks remain reluctant to provide L/Cs

Russian oil firm Rosneft is apparently responding to the reluctance of US banks to extend letters of credit (L/Cs) for refiners awaiting shipments of Venezuelan crude oil from Petroleos de Venezuela S A (PDVSA).

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L/Cs feature in India's efforts to encourage solar power

Developers of solar power generation facilities in India will be able to reduce the risk of electricity off-takers not meeting their payment obligations by using letters of credit (L/Cs).

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Iran's Bank of Industry Mines expands correspondent network to support L/C business

Iran's Bank of Industry and Mines (BIM) considerably expanded its correspondent banking network in the last fiscal year to bolster its letter of credit (L/C) business according to the bank’s deputy for international affairs.

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L/Cs hard to come by for Chinese soybean traders

Singaporean importers of Chinese soybean are finding letters of credit (L/Cs) hard to come by due to adverse factors across the industry.

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Fraudster who promised high returns on L/Cs sentenced

A judge in the US state of North Carolina has sentenced a convicted fraudster to more than four years in prison for operating an investment fraud scheme.

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Tanker carrying Venezuelan crude stranded off US coast needs L/C to discharge crude

An oil tanker loaded with about one million barrels of Venezuelan crude has been stranded for more than a month off the coast of the US state of Louisiana because it lacks the letter of credit (L/C) required to discharge its cargo.

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Floods precipitate surge in L/Cs in Bangladesh

Devastating floods in Bangladesh have precipitated a surge in letter of credit (L/C) openings for imports of staple foods.

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UPS Capital announces L/C alternative payment service

UPS Capital has announced the launch of a new online business-to-business payment service that it claims offers a secure alternative to traditional letter of credit (L/C) payments.

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Dubai's position as Gulf financial hub in jeopardy after L/C disruption

Standard Chartered's CEO says Dubai risks jeopardising its position as the Gulf's banking hub as a result of the trade boycott of Qatar by a Saudi-led bloc that includes the UAE.

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Iran and Pakistan cooperate to boost L/C business

Iran and Pakistan’s largest banks are taking practical steps to boost letter of credit (L/C) business by opening branches in each other’s country according to the Central Bank of Iran (CBI).

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Banks collaborate on pilot for digital sight L/C

Eleven banks are collaborating on a prototype application for letter of credit (L/C) processing over a platform developed by financial innovation company R3, which leads a consortium of dozens of the world's largest financial institutions in the research and development of blockchain or distributed ledger solutions.

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Truck and bus manufacturer casts doubt on L/C future after BPO transaction

Commerzbank has processed the first Bank Payment Obligation (BPO) transaction in Austria.

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L/Cs may feature in Qatari bank's efforts to cut UAE exposure

A unit of Qatar's Doha Bank may be attempting to sell letters of credit (L/Cs) exposed to UAE local lenders amid continuing tensions in the Gulf.

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Russia and Saudi Arabia to forge closer L/C ties

Russian and Saudi officials are expected to meet later this year to forge a range of commercial cooperation agreements in the oil, gas and power sectors.

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CITIC Bank launches China's first blockchain L/C transaction

China-based CITIC Bank has launched what it claims to be the first ever letter of credit (L/C) system in the Chinese banking industry based on blockchain or distributed ledger technology.

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Indian property developer in US$400 million money laundering scheme faces new L/C fraud charges

India's Central Bureau of Investigation (CBI) has charged the director of Zoom Developers for letter of credit (L/C) and other frauds that caused substantial losses for Indian Overseas Bank.

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EIB's L/C enhancement helps groundbreaking new Italy-France power interconnection

The European Investment Bank (EIB) has used its new letter of credit (L/C) senior debt credit enhancement (SDCE) tool to support the financing of a major cross-border electricity interconnection for Italian state grid operator, Terna.

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Bangladesh eases requirements for L/Cs for rice imports

Bangladesh has eased requirements on letters of credit (L/Cs) opened for rice imports.

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L/Cs crucial for financial close on Texan wind farm

Letters of credit (L/Cs) have helped a very substantial wind power project in the US state of Texas reach financial close.

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Guernsey gears up for more L/Cs in Chinese captive insurance schemes

Guernsey has signed four Chinese insurance-related memoranda of understanding (MoU) since mid-2016, and the island's captive insurance market is starting to insure Chinese companies.

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Expired L/Cs add to Cuba's economic woes

Expired letters of credit (L/Cs) are contributing to Cuba's worsening financial crisis according to Cuban economy minister, Ricardo Cabrisas.

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Syria abandons L/Cs for wheat imports

Syria's state grain agency, Hoboob, is no longer opening letters of credit (L/Cs) for wheat imports according to state news agency Sana.

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Mizuho announces successful blockchain L/C experiment

Mizuho of Japan is one of the latest financial institutions to announce the results of an experimental blockchain letter of credit (L/C) transaction.

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Bank officials and telecoms entrepreneur face L/C fraud charges

India's Central Bureau of Investigation (CBI) has filed charges in a Mumbai court against a director of a Gujarat-based private telecoms company and several bank officials in a scam involving letters of credit (L/Cs).

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ICC report contemplates disappearance of L/Cs

The International Chamber of Commerce (ICC) Banking Commission has published its annual Global Survey on Trade Finance, which contemplates the "long-anticipated disappearance of the documentary letter of credit (L/C)."

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EIB provides guarantee facility for L/Cs issued by Greek banks

The European Investment Bank (EIB) has activated a second Trade and Export Finance (TEF2) guarantee facility for Greece.

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L/C hurdles eventually overcome as Iraq begins imports of Iranian gas

Difficulties arranging the letters of credit (L/Cs) needed for Iranian gas exports to start flowing to Iraq have been overcome.

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Traydstream launches new system for automated L/C checks

A new financial technology or 'fintech' company has launched a solution to check letters of credit (L/Cs) and other documents against industry rules and regulations.

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SMBC and IFC sign new US$1bn deal to improve L/C access in emerging markets

Sumitomo Mitsui Banking Corporation (SMBC) and the International Finance Corporation (IFC) have invested US$1 billion in the IFC's Global Trade Liquidity Programme (GTLP) with the aim of improving the flow of letters of credit (L/Cs) issued by banks in emerging markets.

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ICC launches working group on digitalisation of trade finance

The International Chamber of Commerce (ICC) Banking Commission has launched a working group to coordinate work towards the digitalisation of trade finance.

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Banks demand fully funded L/Cs from Zimbabwe

Foreign banks are insisting that Zimbabwean importers arrange fully funded letters of credit (L/Cs) from domestic banks due to the country's worsening foreign currency crisis.

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Sears files lawsuit to counter claims it cannot meet its L/C obligations

Sears, the US retailer currently embarked on a turnaround strategy, has sued a supplier for demanding what the retailer says are unjustified changes to their supply contract.

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Trafigura's deal with Wonfull Petrochemical overcomes Iranian L/C hurdle

China's Wonfull Petrochemical has bought a cargo of Iranian crude on a spot basis from Trafigura, in a deal that overcomes the hurdle of sanctions preventing banks from opening letters of credit (L/Cs) for deals with Iran.

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Trade finance between Hong Kong and China waning

Letter of credit (L/C) business between Hong Kong and China is waning due to capital controls introduced by Beijing as it endeavours to stem the flow of cash out of the country.

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India unearths L/C fraud at private company and Canara Bank

India's Central Bureau of Investigation (CBI) has arrested a director of a New Delhi based private company and another person in a case relating to an alleged US$3.45 million fraud involving Canara Bank.

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Banks in Singapore and Japan to improve L/C availability for small firms

Singapore-based DBS Bank and Nishi-Nippon City Bank (NCB) of Japan have signed a memorandum of understanding (MoU) to foster greater collaboration and support for Japanese small- and medium-sized enterprises (SMEs) in Asia.

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Saudi Arabia orders banks not to increase L/C exposure to Qatari clients

In a directive that includes letters of credit (L/Cs), Saudi Arabia's central bank has ordered the country's lenders not to increase their trade finance exposure to any Qatari clients.

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Sberbank announces successful blockchain L/C transactions

Russia's largest bank, Sberbank, says it has successfully used blockchain technology to conduct international letter of credit (L/C) transactions for the Russian steel and mining company, Severstal.

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Egyptian banks halt dealings with Qatar, but spare L/C business

Some Egyptian banks have halted dealings with Qatari banks but they are continuing to open import letters of credit (L/Cs), four Cairo-based bankers have told the Reuters news agency.

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First bank in Fiji signs up to ADB's Trade Finance Programme

Fiji's Home Finance Company Bank (HFC Bank) has signed two trade finance agreements with the Asian Development Bank (ADB) aimed at improving its access to letters of credit (L/Cs) and other trade finance offerings.

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Blockchain reduces L/C processing time by 20-30 days

India's Kotak Mahindra Bank says it has used blockchain technology to reduce the time taken for a letter of credit (L/C) transaction from 20-30 days to just a few hours.

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ICC calls for UN action to keep L/Cs flowing across the trade finance gap

The International Chamber of Commerce (ICC) is calling on the United Nations (UN) to address a rapidly increasing trade finance gap.

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Smuggling encouraged by L/C costs

Costly letters of credit (L/Cs) feature in a range of circumstances forcing Bangladesh's jewellery makers to become heavily dependent on smuggled gold according to industry sources.

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Telecom entrepreneur used L/Cs to pull off loan scam

India's Central Bureau of Investigation (CBI) has arrested the promoter of a telecom company in connection with a US$19 million loan scam case.

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Calls to eliminate L/Cs in Ghana's oil market

The operations and marketing manager of one of Ghana's major oil marketing and retailing companies, Goenergy, says he wants to stop paying for products on letter of credit (L/C) terms.

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L/C abuse prompts Nigeria to advocate escrow accounts for electricity distributors

Nigeria's minister of power, works and housing, Babatunde Fashola, has said that the Nigerian Electricity Regulatory Commission (NERC) wants the accounts of and revenues generated by the country's 11 electricity distribution companies to be centralised and escrowed to protect the power sector from collapsing.

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Fraudsters fail to deliver valuable standby L/C

Four people have been charged in the US state of New Jersey in connection with a fraud that promised a gold dealer a valuable standby letter of credit (L/C) to fund its imports.

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Transport strike in Pakistan jeopardising L/C transactions

A strike by goods transporters in Pakistan is jeopardising letter of credit (L/C) transactions and spiking prices according to business leaders there.

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New L/C and trade mechanisms for Pakistan and Iran

The State Bank of Pakistan (SBP) has introduced a new mechanism for letter of credit (L/C) transactions between Iran and Pakistan.

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Access to L/Cs for Oman's SMEs set to improve

The Central Bank of Oman (CBO) has issued an order to commercial banks that may improve the flow of letters of credit (L/Cs) to Oman's small- and medium-sized enterprises (SMEs).

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Early L/C settlements helping robust credit growth in Bangladesh

Businesses in Bangladesh are settling letters of credit (L/Cs) in order to take advantage of the strength of the taka against the US dollar.

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Bank of America reveals progress on Microsoft blockchain L/C application

Bank of America has revealed progress on a blockchain application designed in association with Microsoft that automates the process of managing standby letters of credit (L/Cs).

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Pressure mounting on Ethiopian private banks writing L/C business

Pressure is mounting on private banks writing letter of credit (L/C) business in Ethiopia as the country continues to suffer, in general, a lack of foreign exchange.

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Ukraine eases L/C requirements once more

The National Bank of Ukraine (NBU) has responded to more pressure from international traders to further ease the requirement for letters of credit (L/Cs) to be used for imports.

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L/C processing and trade finance feature in major Russian blockchain conference

Letter of credit (L/C) and trade finance applications using blockchain or distributed ledger technologies featured prominently at a recent conference dedicated to blockchain and cryptocurrencies.

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Trade settlement mechanism will allow Pakistan and Iran to write L/C business

State Bank of Pakistan (SBP) and Bank Markazi Jomhouri Islami Iran (BMJII) have signed an agreement to provide a trade settlement mechanism between Pakistan and Iran.

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AfDB approves US$450 million L/C package for Afreximbank

The African Development Bank (AfDB) has approved a US$450 million trade finance package for the African Export-Import Bank (Afreximbank).

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Maltese manufacturers say obtaining L/Cs is the most difficult aspect of trade finance

Obtaining letters of credit (L/Cs) is the most common problem in trade finance faced by Maltese manufacturers according to a recent study by Trade Malta.

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More confirmation of improved Egyptian L/C flows

Egypt's banks are opening increasingly more letters of credit (L/Cs) for petroleum products according to a recent report published by the Central Bank of Egypt (CBE).

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Fake standby L/Cs allegedly used in US wire fraud

A jury in the US has indicted two men and a woman resident in the San Francisco Bay area on charges of wire fraud and wire fraud conspiracy.

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Russia's L/C roller coaster

There appear to have been significant shifts in the dynamics of letter of credit (L/C) business with and within Russia since its 2014 annexation of Crimea and the subsequent imposition of EU and US sanctions.

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Several banks duped in Indian L/C fraud

India's Central Bureau of Investigation (CBI) has filed suits against two Mumbai based jewellery dealers who may have conspired with bank officials to cause losses of around US$230 million to several banks.

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North Africa Bank under investigation for L/C irregularities

North Africa Bank's Zliten branch is to be investigated by Libya's Administrative Control Authority (ACA) over claims of financial irregularities.

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Trafigura and Natixis test blockchain technology to ease L/C transaction process

Commodities trading house Trafigura and French bank Natixis are testing blockchain or distributed ledger technologies as an alternative settlement system to conventional letters of credit (L/Cs).

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Chinese banks restricting L/Cs for imports of South Korean chemicals

A South Korean chemical company has complained that Chinese banks are refusing to open letters of credit (L/Cs) for buyers of its products.

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Westinghouse Chapter 11 refinancing features new L/Cs

Westinghouse Electric Co on 29 March 2017 filed for Chapter 11 protection from creditors to enable strategic restructuring amid "financial and construction challenges" in its US nuclear power plant projects.

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Libya insists on L/Cs for oil purchases amid concerns about black market trading

Libya is insisting that only authorised companies can buy its crude oil, which must be purchased on letter of credit (L/C) terms according to a statement issued by the National Oil Corporation (NOC).

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Pramod Mittal facing charges for L/C conspiracy

Pramod Mittal, the former Chairman of Global Steel Holdings Limited (GHSL) and younger brother of steel tycoon Lakshmi Mittal, is facing charges brought by India's Central Bureau of Intelligence (CBI) for allegedly defaulting on credit re-payments to the State Trading Corporation (STC).

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Georgia eyes L/Cs for nuclear power station compensation

Municipal Electric Authority of Georgia (MEAG) is eyeing letters of credit (L/Cs) as compensation should Westinghouse Electric Co fail to deliver to the authority a nuclear power plant it is building.

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New forged storage certificate scam to hamper access to L/Cs for commodities traders

Letters of credit (L/Cs) may prove even harder to obtain for commodities traders as a new scandal involving forged storage certificates emerges.

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Renewed criticism as Ethiopia's L/C shortage continues

Ethiopian business leaders have renewed criticism of their government for failing to address the longstanding issue of letter of credit (L/C) shortages due to a lack of foreign exchange.

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Abu Dhabi Islamic Bank launches Shari'ah-compliant Islamic L/C offering

Abu Dhabi Islamic Bank (ADIB) has launched a new Shari'ah-compliant letter of credit (L/C) financing offering.

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Calls to lift cash margin from L/Cs for knocked down vehicles

The Pakistan Automotive Manufacturers Association (PAMA) is calling on the finance ministry to abolish the cash margin requirement for letters of credit (L/Cs) opened for imports of completely knocked down (CKD) vehicles.

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Forged L/Cs used to siphon funds from Punjab's public works department

India's Enforcement Directorate (ED) has unearthed records of high-end properties belonging to three officials of Punjab's public works department and allegedly purchased with money siphoned from state funds.

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Increased L/C flows expected under Afreximbank's strategic plan

Flows of letters of credit (L/Cs) are expected to increase under the African Export-Import Bank's (Afreximbank's) recently unveiled five-year strategic plan.

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L/C decline reflects sluggish Saudi economy

A substantial decline in letter of credit (L/C) openings has underlined how Saudi Arabia's economy is still struggling to gain momentum amidst low oil prices.

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Ukraine's energy utility issued L/Cs under new World Bank guaranteed loan agreement

Ukraine's national energy company, Naftogaz, has been issued its first tranche of letters of credit (L/Cs) as part of a US$500 million loan.

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Chinese companies no longer need L/Cs or 'keep well' agreements to tap foreign lenders

Letters of credit (L/Cs) or 'keep well' agreements will no longer be needed for Chinese companies looking to tap foreign lenders.

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Axis Bank providing L/Cs and guarantees to support Indian startups

Indian banks are reportedly extending more credit to Indian technology startups that have until recently found it difficult to obtain bank support.

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Former Gambian president used L/Cs to channel foundation's funds to himself

Funds from a US dollar bank account in the name of the Jammeh Foundation for Peace, a charity founded by Gambia's former president Yahya Jammeh, flowed to Jammeh himself, not to foundation projects, according to the Reuters news agency.

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L/Cs feature in Indian manufacturer's alleged conspiracy

A lawsuit has been filed against an Indian electrical equipment manufacturer that used letters of credit (L/Cs) in an alleged conspiracy that cheated Andhra Bank out of some US$10.7 million.

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Nigeria moves to improve overall L/C availability

The Central Bank of Nigeria (CBN) has issued its New Policy Actions in the Foreign Exchange Market.

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Nepalese L/C business set to boom as trade blockade with India is lifted

Increased letter of credit (L/C) business looks likely to help an anticipated surge in profits at Nepal's commercial banks.

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L/C functionality in IBM's blockchain solution for imports and re-exports of goods through Dubai

Dubai's government has launched an initiative to test blockchain technology for trade finance in partnership with IBM.

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Libya imposes 100 per cent customs duty on L/C imports

Libya's Presidential Council and Government of National Accord (PC/GNA) have issued a decree imposing a new unified customs duty of 100 per cent on almost all imports transacted on letter of credit (L/C) terms.

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Credit Suisse secures Caribbean market position providing L/Cs for captive insurers

Credit Suisse has established itself as a leading provider to the Caribbean's captive insurance sector, providing letters of credit (L/Cs) worth US$2.5 billion.

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Bank Misr confirms improved Egyptian L/C flows

Egypt's second biggest bank, state-owned Banque Misr, has opened letters of credit (L/Cs) worth around US$2.05 billion to meet import payments since last year's local currency flotation, according to vice chairman, Akef El Maghraby.

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L/C required to back Libya's power generation expansion

A leading engineering, procurement and construction (EPC) group based in Greece says it has signed a US$380 million contract with the interim Libyan authorities to construct a power plant in Tobruk.

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Banks collaborate on blockchain L/C alternative for SMEs

Seven large banks are collaborating on a blockchain-based trade finance and supply chain platform aimed at small- and medium-enterprises (SMEs) that find letters of credit (L/Cs) unsuitable for their business needs.

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New online L/C service from DBS Bank for Singaporean SMEs

Singapore's DBS Bank has launched a new service that allows small- and medium-sized enterprises (SMEs) to apply for letters of credit (L/C) online in the space of five minutes.

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Conflicting messages on Nigerian L/C availability for manufacturers

The Central Bank of Nigeria (CBN) says it is committed to ensuring that key manufacturing firms are able to obtain the letters of credit (L/Cs) they need to import the materials required for their businesses.

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Quarry operator must put up L/C to lift suspension

A quarry operator in the Canadian province of British Columbia has been told it must put up a letter of credit (L/C) to guarantee its environmental remediation obligations if it wants to resume operations.

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Iran optimistic about normalised L/C business by March

Iran expects banking relations with the rest of the world to improve by the end of its current fiscal year in March according to deputy for international affairs at the Iran Chamber of Commerce, Industries, Mines and Agriculture, Mohammad Reza Karbasi.

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Bank of China signs up for Bolero's electronic trade document platform

Bank of China (BOC) has become the first of China's 'Big Four' banks to offer exporters the use of Bolero's online electronic trade document platform.

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L/Cs used in multi-million euro money smuggling out of Libya

The Libyan authorities have accused 23 companies located across the world of smuggling millions of euro out of Libya.

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L/Cs required for Iran-Iraq gas sales

Difficulties obtaining appropriate letters of credit (L/Cs) need to be overcome before Iraq can buy gas from Iran according to the Iranian deputy oil minister.

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National Bank of Egypt confirms L/C recovery and anticipates economic recovery

The National Bank of Egypt (NBE) has financed import operations worth US$4.3 billion since the decision to float the Egyptian pound on 3 November 2016 until 18 January 2017 according to the bank's vice president, Yehia Abu ElFotouh.

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Commentators agree with court judgment on PetroSaudi's L/C validity

Commentators appear to agree in general with that the judgment of a UK court that PetroSaudi had no claim to US$130 million under a standby letter of credit (L/C) which stipulated that the Venezuelan government must pay the company, whether or not there were disputes to be settled.

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Russia reports first blockchain L/C transaction

Two Russian entities, S7 Airlines and Alfa-Bank, have completed and settled a letter of credit (L/C) transaction using blockchain or distributed ledger technology.

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L/C shortage contributes to sharp decline in Nigerian manufacturing activity

Nigeria's manufacturing sector performed dismally in 2016 according to data released by the Central Bank of Nigeria (CBN)

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Indian interest in L/C and trade finance applications for blockchain technologies

Stakeholders in India's banking and financial services sectors are looking closely at ways blockchain or distributed ledger technologies can be used in letter of credit (L/C) and other trade finance applications.

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L/Cs a key feature in Sears' financial rescue package

Letters of credit (L/Cs) are an integral part of hedge fund manager Edward Lampert's financial rescue package for struggling US retailer, Sears Holdings.

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Demonetisation stoking Indian demand for L/Cs

India's so-called demonetisation - the withdrawal from circulation of 500 and 1,000 rupee notes - appears to have precipitated increased interest in letter of credit (L/C) transactions.

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Libya's ban on sale of L/C subsidised goods to Tunisia provokes border protests

Tunisians living on the border with Libya are blocking the road and preventing travellers crossing from one country to the other.

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Fake L/Cs feature in Indian bank scam

India's Enforcement Directorate has seized assets worth around US$19.3 million deemed to be associated with a major organised fraud at Syndicate Bank.

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Ethiopian bank's falling profits due to L/C and telegraphic transfer mismanagement

Plummeting profits at the Cooperative Bank of Oromia (CBO) are a result of mismanagement of the bank's letter of credit (L/C) and telegraphic transfer operations.

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No L/Cs for wheat edging Yemen closer to famine

Yemen's major wheat importers have said they are now unable to import wheat because letters of credit (L/Cs) can no longer be obtained amid a crisis at the Central Bank of Yemen (CBY), documents seen by news agency Reuters show.

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US education authorities intensifying L/C pressures on for-profit colleges

Education authorities in the US are intensifying their use of letters of credit (L/Cs) in their efforts to ensure that for-profit education companies that are state funded deliver adequate services.

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ICC data shows L/Cs are a particularly low risk asset

Data from the International Chamber of Commerce's (ICC's) Trade Register shows how low risk trade finance is in relation to comparable asset classes, such as corporate and small to medium-sized enterprise (SME) lending.

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Ecobank L/C plays a part in Zimbabwe's holiday fuel solution

A letter of credit (L/C) from Ecobank has helped the Reserve Bank of Zimbabwe (RBZ) seal a deal to ensure adequate fuel supplies during the country's upcoming festive season.

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Air France-KLM employs Bank of China L/C to back Asian fund raising

Air France-KLM has employed a letter of credit (L/C) from Bank of China to back its latest fund raising efforts in Asia.

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Philippine Business Bank signs up to IFC's global trade finance programme

Philippine Business Bank (PBB) has signed up to the International Finance Corporation's (IFC's) Global Trade Finance Programme (GTFP).

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Nigeria's special intervention for L/Cs for fuel imports

The Central Bank of Nigeria (CBN) has made what it describes as a special intervention to ensure that foreign exchange is available for oil importers' letters of credit (L/Cs) reaching maturity.

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Société Générale Ghana looks to boost L/C business with Chinese exporters

Société Générale Ghana (SocGen) is pitching its Finasia trade finance offering to Chinese exporters in a bid to win more letter of credit (L/C) business for transactions between China and Ghana.

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Egypt's banks secure US$2.2bn to meet customers' needs and L/Cs since currency flotation

Egyptian officials say banks operating in Egypt provided US$2.2 billion to meet the needs of their customers and secure letters of credit (L/Cs) in the ten days since the liberalisation of the exchange rate of the Egyptian pound.

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Libya orders L/Cs for food and basic goods

Libya's interim government has issued an ordinance tasking the Central Bank of Libya (CBL) to provide 300 million Libyan dinars (US$211 million) cover in foreign currency for essential imports.

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Support may be waning for blockchain L/C developer

Support for the fintech innovation company R3 CEV's blockchain or distributed ledger consortium appears to be waning.

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Heavy losses for Nigerian manufacturers trading on L/C terms

The Manufacturers Association of Nigeria (MAN) has said that the Central Bank of Nigeria's (CBN's) flexible exchange rate policy has caused substantial losses for manufacturers selling on letter of credit (L/C) terms.

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Former Wells Fargo advisor fined for unauthorised communications on L/Cs and guarantees

The Financial Industry Regulatory Authority (FINRA) of the US has fined and reprimanded a former Wells Fargo advisor for allegedly communicating with customers about bank transactions that were beyond the scope of his authority.

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Euro topples RMB as second most used trade finance currency

The euro is the second most used currency for trade finance, whilst China's renminbi (RMB) slips to position number three in the latest Swift RMB Tracker.

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Intesa Sanpaola becomes first nationwide Italian bank to issue electronic L/C

Italian banking group Intesa Sanpaolo has used Bolero's ePresentation to become the first nationwide Italian bank to issue an electronic import letter of credit (L/C).

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Guilty verdicts in complex fraud case involving USDA L/C guarantee

Two men have been found guilty of committing a multi-million dollar fraud using false documents to obtain letters of credit (L/Cs) from US and foreign banks.

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Solar energy opportunities could be unlocked by L/Cs

Officials in Craven County are suggesting that letters of credit (L/Cs) could help increase the amount of energy produced by solar power in the US state of North Carolina.

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HSBC to roll-out ePresentation

HSBC and Reliance Industries have announced that they have recently completed a digital 'ePresentation' transaction involving the electronic presentation of export documents under a letter of credit (L/C).

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US-based alleged fraudsters said 'leased' L/Cs and bank guarantees would yield super-high earnings

Three men from the US states of Georgia and South Carolina have been accused of defrauding investors of at least US$775,000 after promising super-high returns from 'leased' letters of credit (L/Cs) or bank guarantees.

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Doubts over availability of L/Cs from Crane Bank of Uganda

A Ugandan government injection of 200 billion Ugandan shillings (USh200 billion-US$57 million) into Crane Bank may be too little to restore the bank's ability to provide letters of credit (L/Cs) to its clients.

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Dispute over L/C submission in Mexican mobile network row

A letter of credit (L/C) lodged with the Mexican authorities to signal a US-based company's serious intent to bid for a mobile network in the country was not submitted according to the regulator.

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Increasing use of L/Cs denominated in Chinese currency anticipated

The latest RMB Tracker from SWIFT shows that during the last two years to September 2016, seven new countries are now using the Chinese renminbi (RMB) for more than 10 per cent of their direct payments by value with China and Hong Kong, bringing the total to 57 countries worldwide.

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Sustainable shipment L/Cs prove popular

The sustainable shipment letter of credit (SSL/C), a financing solution that banks can use to promote international trade in sustainably produced commodities, is proving popular amongst banks according to a recent survey.

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Illinois to remarket costly L/C supported bonds

The US state of Illinois is to remarket US$600 million of variable-rate municipal bonds to avoid the costs of letters of credit (L/C) used in its current tranche of bonds.

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Bank of China and China Guangfa Bank report first-ever electronic L/C transactions

Bank of China and China Guangfa Bank have both for the first time used an electronic back-to-back letter of credit (L/C) solution in an international transaction.

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Nepal's banks finally authorised to issue L/Cs for clients using India's Vizag Port

Importers in Nepal can at last ship third-country goods in through Visakhapatnam (Vizag) Port in India.

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OFAC clarifies L/C position for trade between the US and Cuba

The US Office of Foreign Asset Control (OFAC) has clarified its position on letters of credit (L/Cs) for trade between the US and Cuba.

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CBA and Wells Fargo add more technologies to live blockchain L/C transaction

Commonwealth Bank of Australia (CBA), Wells Fargo and Brighann Cotton are in the process of conducting a letter of credit (L/C) transaction using multiple technologies, including blockchain or distributed ledger solutions.

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Moody's downgrades two L/C enhanced bonds on concerns over Chinese banks

Moody's Investors Service has downgraded the ratings on two stand-by letter of credit (L/C) enhanced bonds.

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Banks provide L/C in support Ghana's landmark power project

HSBC and Standard Chartered have issued a US$500 million standby letter of credit (L/C) in support of an offshore gas project that could increase Ghana's electricity generating capacity by around one-third.

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ICC Global Survey points to a decrease in L/C business and deepening trade finance gap for SMEs

Nearly 50 per cent of respondents to the International Chamber of Commerce's (ICC's) recently released Global Survey report said they had seen a decrease in commercial letter of credit (L/C) business.

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German companies see progressively more L/C availability for trade with Iran

German economy minister, Sigmar Gabriel, has visited Iran with a delegation of around 100 industry executives keen to rebuild trade ties.

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EximBank India makes L/Cs available for Zimbabwe's power sector

Export-Import Bank of India (EximBank India) has agreed with the government of Zimbabwe a US$87 million credit line to help develop the African country's power sector.

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Uncertain future for L/Cs linked to Hanjin Shipping collapse

Despite being thrown a financial lifeline meant to ensure that stranded cargoes could be unloaded, reports continue to appear describing that many shipments that were en route when Hanjin Shipping declared bankruptcy are stuck at ports and ships are unable to deliver their cargoes.

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Trade Technologies reports 100,000th fully electronic presentation

Trade Technologies, an established provider international trade document solutions, says its has successfully completed its 100,000th fully electronic presentation of original trade documents to banks and buyers.

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Expanded Libyan power station operations may be disrupted by poor L/C availability

Libya's state-owned power utility has said the expansion of a large power station is nearing completion.

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Bank of America and Microsoft collaborate on L/C blockchain applications

Bank of America Merrill Lynch is collaborating with Microsoft to build and test blockchain applications for letter of credit (L/C) transactions.

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Stenn launches finance platform as an L/C alternative for small Asian exporters

Trade finance provider Stenn International has announced a multi-million dollar platform to provide smaller Asian exporters an alternative to letters of credit (L/Cs).

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Canadian Solar secures US$100 million L/C or guarantee facility from Export Development Canada

Canadian Solar has announced that it has signed a financing agreement whereby it will be able to obtain letters of credit (L/Cs) or guarantees from Canada's export credit agency.

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Japan to provide L/C funding for Iran's petrochemical projects

Japan may fund the development of nearly $1bn of Iran's petrochemical projects.

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IBM stakes claim in emerging blockchain technology L/C market

Multinational technology giant IBM is staking its claim to be part of the emerging blockchain technology letter of credit (L/C) market.

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Businessman indicted for fraud involving unauthorised L/Cs

A businessman in the US state of Tennessee has been indicted for participating in a conspiracy that defrauded three banks of more than US$9 million.

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Parallel Central Bank of Libya opens L/Cs in foreign currency

The parallel Central Bank of Libya (CBL) of the unrecognised Eastern Libyan government says it has started to open letters of credit (L/Cs) in US dollars and other foreign currencies.

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More blockchain technology developments with L/C implications

Blockfreight, a solutions provider aiming to produce the world's first end-to-end blockchain or distributed ledger technology solution for the global cargo shipping industry, is looking to dovetail its offering with letter of credit (L/C) processing.

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Discontent over Washington's reluctance to lift US sanctions on Iran

An Iranian banker has said that there are few signs of normal banking relationships resuming between the world's largest banks and Iran.

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Barclays announces first live L/C transaction using blockchain technology

Barclays has announced the first live letter of credit (L/C) transaction using blockchain or distributed ledger technology.

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US education authorities increase L/Cs requirements to pile the pressure on for-profit schools

Education authorities in the US are using letters of credit (L/Cs) as part of a package of tough measures on state funded for-profit education companies that fail to deliver adequate services.

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US bank ordered to pay L/C that guaranteed payment of bankrupt hospital's insurance cover

A US court has ordered First Community Bank (FCB) of the US to pay Arch Specialty Insurance (ASI) US$300,000 plus nearly US$45,000 in interest for refusing to honour a letter of credit (L/C) issued to guarantee the insurer was paid its premium.

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Streamline L/C service for India's renewable energy providers

Providers of renewable energy will be able to access letters of credit (L/Cs) faster under a new arrangement between a specialist financial institution and Indian banks.

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Call for collaboration in developing distributed ledger technology for L/C transactions

A senior executive in one of the two consortia that recently announced progress towards applying blockchain or distributed ledger technology in letter of credit (L/C) transactions is calling for the two development teams to work together.

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Nigeria eases access to L/C backed electricity payment guarantees

Nigerian Bulk Electricity Trading (NBET) has assigned the country's electricity generation companies (Gencos), the right to draw down payments for power supplied but not paid for by electricity distribution companies (Discos) from standby letters of credit (L/Cs) lodged as payment guarantees with their banks.

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More progress on blockchain technologies for L/C transactions

Another consortium has announced progress towards applying blockchain or distributed ledger technology in letter of credit (L/C) transactions.

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Ukraine softens L/C requirements

The National Bank of Ukraine (NBU) has responded to pressure from importers and exporters to soften restrictions on letter of credit (L/C) transactions.

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Working group formed to improve L/C availability in Myanmar

A working group comprising government and bank officials as well as entrepreneurs has been formed with the support of the Asian Development Bank (ADB), to develop business banking services and supply chain mechanisms so that Myanmar's traders can participate more actively in international trade.

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Technology tenants boosting L/C usage in the US office rental market

Technology tenants in the US are leasing record volumes of office space, precipitating increased demand for letters of credit (L/Cs) as landlords seek security, often from firms developing products that have yet to prove profitable.

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Blockchain for L/C transactions a step closer

A new prototype developed by Bank of America Merrill Lynch, HSBC and the Infocomm Development Authority of Singapore (IDA) may have brought the use of blockchain technologies in letter of credit (L/C) transactions a step closer.

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Lack of access to banking services and L/Cs restraining too many Mena-based companies

A majority of firms in the Middle East and North Africa (Mena) region have insufficient access to letters of credit (L/Cs) and banking services according to a recent report.

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Pakistan's banks see L/C opportunities in China

Several of Pakistan's banks are eyeing opportunities to write more letter of credit (L/C) business by expanding overseas and exploring new markets, particularly in China, officials have said.

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US court rules that forged L/Cs provide no evidence of 'unlawful taking'

Tesoro, a US-based oil refining company is not entitled to coverage under its crime policy issued by its insurer, an AIG company, because there is no evidence that forged letters of credit (L/Cs) involve "unlawful taking," an appeals court has ruled.

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L/Cs issued by DBS at risk as oil services company collapses

Singapore's DBS Bank, has said that it is exposed to letters of credit (L/Cs) provided to Swiber Holdings shortly before the collapse of the oil services company.

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US court overruled in attempts to seize property from Bank Melli for its L/C activities and other sanctions violations

A federal appeals court in New York has blocked efforts by the US government to seize a 36-story Manhattan office tower jointly owned by a non-profit organisation and an entity owned by Bank Melli, the state-owned Iranian bank sanctioned for opening letters of credit (L/Cs) for and maintaining the accounts of Iranian front companies.

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India's steelmakers want effective ban on L/Cs for steel imports

India's leading steelmakers are seeking an extension of the minimum import price (MIP) imposed on steel by six months to a year.

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Role of L/Cs in Canadian pension schemes set for expansion

The extent to which letters of credit (L/Cs) can be used in defined benefit pension plans operating in the Canadian province of Ontario may be increased.

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Reserve Bank of India fines UCO Bank for L/C procedural breaches

The Reserve Bank of India (RBI) has imposed a US$150 million fine on UCO Bank for its failure to follow proper letter of credit (L/C) procedures.

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Outgoing bank chief sees future of more African L/C business

Outgoing group managing director of United Bank for Africa (UBA) is predicting that more letter of credit (L/C) business will be written entirely in Africa.

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Banks should mull migrating L/C business to blockchain

Financial institutions should accelerate their implementation of blockchain technologies in their trade finance operations or face falling behind the competition, according to a new analysis from Bain.

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Coal miner's bankruptcy may open up new L/C market

The bankruptcy in the US of Alpha Natural Resource has called into question the way miners have been able to use controversial state self-bonding programmes for coal mine reclamation.

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Libya sets aside more funds for L/Cs for essential imports

The Central Bank of Libya (CBL) has said it is doubling the proportion of hard currency set aside in its annual budget for the import of five broad categories of goods through letters of credit (L/Cs)

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Thai programme to improve L/C availability for SMEs

Thailand's Krungthai Bank is to make letters of credit (L/Cs) available to small- and medium-sized enterprises (SMEs) looking to realise their export potential.

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Yemen's L/C isolation adds to civil war misery

Yemen's increasing difficulties to obtain letters of credit (L/Cs) is partly the cause of many areas of the country edging close to famine.

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ADB's L/C-oriented trade programme enters the Pacific

The Asian Development Bank's (ADB's) Trade Finance Programme (TFP) has made its first foray into Pacific markets with the signing of guarantee and loan agreements with the National Bank of Samoa and Samoa Commercial Bank.

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Fitch cautions against move away from L/Cs and traditional trade finance

Relatively low ratings awarded by Fitch to the emerging breed of alternative trade finance providers are in part due to the riskier nature of their products compared with traditional tools such as letters of credit (L/Cs).

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HDFC launches digital L/C and bank guarantee service for SMEs

Electronic letter of credit (L/C) and bank guarantee services are available to Indian small- and medium-sized enterprises (SME) in HDFC Bank's newly launched digital banking service for the small business sector.

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New L/C arrangements for imports into Nepal via Vizag Port

Nepal's ministry of commerce (MoC) has notified the Nepal Rastra Bank (NRB) that banks can now authorise letters of credit (L/Cs) with documents naming India's Visakhapatnam (Vizag) Port as a destination for imports into Nepal.

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Fraudulent L/Cs used in money-laundering scheme

India's Enforcement Directorate (ED) has seized assets worth around US$3 million from a Hyderabad-based firm and its directors in connection with a money-laundering probe.

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IMF suggests major banks bundle L/Cs with other products to reduce correspondent banking compliance costs

The International Monetary Fund (IMF) has suggested that major global banks should look for ways to reverse the trend of eliminating correspondent banking relationships (CBR) with smaller economies.

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Egypt's exports increase may help L/C availability

An increase in Egypt's exports may signal a move towards improved letter of credit (L/C) availability.

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Impact of Brexit on L/C business

Trading between the UK and the European Union (EU) following the so-called Brexit vote will be more complicated, according to a director of an organisation that checks a very large number of letters of credit (L/Cs) each year.

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Iran seeks L/C funding for major petrochemical plans

Iran is seeking letter of credit (L/C) funding from potential Japanese and South Korean investors to fund the rehabilitation and expansion of its petrochemical facilities.

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Falling remittances will have a negative impact on Nepal's L/C flows

Remittance payments to Nepal have fallen sharply as migrant workers suffer the impact of sluggish Gulf economies due to the sustained fall in oil prices.

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Alternative L/C provider enters administration

A non-bank letter of credit (L/C) and trade finance provider with three offices in the UK has entered administration and ceased trading with job losses.

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Gap closing on Nigeria's outstanding L/Cs and foreign exchange reserves

The gap between Nigeria's foreign exchange reserves and the country's outstanding letters of credit (L/Cs) is closing.

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Iran's gradually increasing L/C business

Iran's banking sector is increasingly able to write letter of credit (L/C) business according to sources in Iran, the Gulf and Europe.

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Central Bank of Yemen steps in to fill the breach left by L/C shortage

With banks unwilling to provide letters of credit (L/Cs) for transactions with Yemen, its central bank has stepped in to provide the finance needed for vital imports.

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Dubai's Department of Economic Development recommends L/C usage

Dubai's Department of Economic Development (DED) is using local media to emphasise the value of using letters of credit (L/C) to secure transactions between buyers and sellers.

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Privately owned US colleges fear more L/C demands

Privately-owned for-profit colleges in the US are concerned about proposed new legislation requiring them to put up letters of credit (L/Cs) as performance guarantees.

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Bank Asia officials arrested for collusion in L/C fraud

Bangladesh's Anti Corruption Commission (ACC) has arrested two officials at a Chittagong branch of Bank Asia Limited who allegedly used fraudulent letters of credit (L/Cs) to embezzle bank funds.

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Austrian and Swiss banks open for Iranian L/C business but larger banks remain absent

Austria's Oberbank and Raiffeisen Bank International (RBI) are now connected to Iranian banks a senior trade official has said.

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AfDB plans to make L/Cs more available in Africa

The African Development Bank (AfDB) is looking to improve letter of credit (L/C) availability in its plans to broaden the range of trade finance products available across the continent.

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ABN AMRO to issue L/Cs in Singapore for Dubai Mercantile Exchange

Dubai Mercantile Exchange (DME) has announced that ABN AMRO's Singapore office has been approved to issue letters of credit (L/Cs) for trading crude oil on the exchange.

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Kuwait's infrastructure spending set to boost demand for L/Cs from Gulf Bank

Despite low oil prices, Gulf Bank of Kuwait may see increasing demand for letters of credit (L/Cs) according to Capital Intelligence Ratings (CIR).

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US sanctions on Myanmar to restrict L/C business until civilian rule is fully restored

US secretary of state John Kerry has said Myanmar must change its constitution to guarantee civilian power if Washington is to lift remaining American economic sanctions on the country.

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Trade finance specialist pleads guilty to fraud involving unauthorised L/C issuance

A former employee of a US not-for-profit financial cooperative that offers banking services has pleaded guilty in court to nine indictments accusing him of fraud.

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L/C dependency impacts negatively on Asian SMEs

The Asian Development Bank (ADB) has highlighted the negative impacts of the reliance on letters of credit (L/Cs) by small- and medium-sized enterprises (SMEs) in the region.

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L/C deal lands EBRD award for Armenia's Converse Bank

Converse Bank of Armenia has been awarded the Deal of the Year-Social Impact award by the Trade Facilitation Programme (TFP) of the European Bank for Reconstruction and Development (EBRD).

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Former bank chief pleads guilty to fraud incorporating unauthorised L/C approvals

A former Central Bank of Savannah CEO has pleaded guilty in a US federal court to charges related to frauds that sometimes relied on unauthorised approvals of letters of credit (L/Cs).

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Noble refinances massive US1.1 billion L/C facility

Singapore's Noble Group has agreed a deal to raise US$3 billion in bank credit facilities to refinance existing loans that include a US$1.1 billion letter of credit (L/C) facility.

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Libya seizes containers as L/C investigations rumble on

Libyan security services have seized fifteen containers as investigations into widespread letter of credit (L/C) abuses continue.

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Boost in L/C availability for US-China trade

A bank originally founded to serve the Chinese American community in California is to set up a new regional letter of credit (L/C) centre.

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Lifting of sanctions on Iran not such good news for Uco Bank's L/C business

The January lifting of sanctions imposed on Iran has been well received by most letter of credit (L/C) providers.

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More L/C business anticipated after Dubai-based CBI receives ratings boost

Dubai-based Commercial Bank International (CBI) expects to write more letter of credit (L/C) business after it was assigned its first investment grade rating from a major credit agency.

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L/C incentives for Ethiopia's industrial parks

Cut price letters of credit (L/Cs) are amongst a range of incentives aimed at attracting investors to take a stake in Ethiopia's Hawassa Industry Park.

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China orders L/C clamp down on imports that could be substituted

Under-capacity in China's manufacturing sector has prompted Beijing to issue an order for banks not to open letters of credit (L/Cs) for imports that could be replaced by goods produced in China.

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US under pressure from Europe to lift sanctions preventing L/C transactions

Frustration is growing amongst European politicians, diplomats and businesspeople over the failure of Washington to repeal US legislation that effectively means sanctions that could be applied to letter of credit (L/C) transactions with Iran are still in place.

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L/C difficulties add pressure to Indonesia's banking sector

Continued difficulties with letter of credit (L/C) regulations, added to pressure from China's economic downturn, have resulted in a tough first quarter in 2016 for Indonesia's banking sector.

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Italy's deal with Iran may pave the way for more L/C transactions

Italy's financing agencies have agreed to provide Iran with nearly EUR 5 billion in credit lines and export guarantees.

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Nigeria to transact L/Cs in Chinese currency

The governor of the Central Bank of Nigeria (CBN) has been explaining how letters of credit (L/Cs) should become easier to obtain following a landmark agreement by China and Nigeria of a new loan and currency swap deal.

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Weak commodity markets dent 2015 L/C business

Letter of credit (L/C) business suffered in 2015 from weak conditions in the commodity markets and the slowdown in China according to analytics company, Coalition.

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Austrian leader calls on Washington in particular to lift restrictions on Iranian banks

Austrian President Heinz Fischer has called on the West and the US to show serious resolve to properly lift financial sanctions imposed on Iran.

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Libya to issue L/Cs to dampen inflation and improve liquidity

The Central Bank of Libya (CBL) has agreed to issue letters of credit (L/Cs) to importers in a bid to dampen a hike in food prices and cash shortages in the country's banks.

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Mixed reports on availability of L/Cs for business with Iran

There are mixed reports regarding letter of credit (L/C) availability in Iran.

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Russia's VTB Bank and Bank of China to write more L/C business

Russia's VTB Bank and Bank of China have signed an agreement that should make it easier to obtain letters of credit (L/Cs) for trade between the two countries.

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US colleges face more L/C demands

Colleges in the US may be required to open more letters of credit (L/Cs) to guarantee performance and cover possible closure costs if proposals from the Department of Education (DoE) come to fruition.

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L/Cs may ease flows of Venezuelan oil exports

Venezuela's state-owned oil company is turning to letters of credit (L/Cs) to help it obtain the materials it needs to keep its oil exports flowing.

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Lack of L/Cs adds to Yemen's food crisis

Yemen's food crisis is deepening, in part because of increasing difficulties obtaining letters of credit (L/Cs).

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Indian investigators uncover long-running scam involving fake L/Cs

India's Central Bureau of Investigation (CBI) has charged at least eight people, including five bank officials, in connection with a long-running series of frauds, some of which included fake letters of credit (L/Cs).

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Shipbreakers in Gujarat should find it easier to obtain L/Cs

Letters of credit (L/Cs) should become easier to obtain for beleaguered shipbreakers in the Indian state of Gujarat.

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Concerns grow over the sustainability of SunEdison's L/C facilities

Concerns are growing over the beleaguered renewable power giant SunEdison's ability to obtain the letter of credit (L/C) facilities it needs to stay in business.

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Foreign branches of Iranian banks reconnect with SWIFT

Twenty-six Iranian banks are now reconnected to the SWIFT messaging system and should now be better able to write letter of credit (L/C) business with other financial institutions

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Nepal's L/C openings surge as trade embargo is eased

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

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Ukraine loosens mandatory L/C requirements

The National Bank of Ukraine (NBU) has exempted energy resources from the requirement that letters of credits (L/Cs) must be used for advance payments in foreign currency when importing goods under contracts of more than US$500,000.

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Central Bank of Libya may open US$2bn of L/Cs

The Central Bank of Libya (CBL) may open up to US$2 billion in letters of credit (L/Cs) with the aim of helping the country out of its massive liquidity crisis.

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Nigerian firm used forged L/C to obtain fuel subsidy

Nigeria's Economic and Financial Crimes Commission (EFCC) says it has uncovered a forged letter of credit (L/C) used by a Nigerian oil trading firm to falsely claim a government subsidy for imported fuel.

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Blockchain technology to join L/Cs in trade finance departments

Bank of America Merrill Lynch (BAML), the corporate and investment banking division of Bank of America, is reportedly developing a blockchain-based experiment for trade finance transactions.

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Cross-border trade settlements in Chinese currency expected to increase

Letters of credit (L/Cs) used to take advantage of differences in interest and exchange rates between mainland China and Hong Kong are likely to remain popular during 2016 according to analysts.

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Egypt to receive US$500 billion trade finance boost from Afreximbank

The Central Bank of Egypt (CBE) has signed a US$500 million trade finance facility agreement with the African Export-Import Bank (Afreximbank) that should help restore the ability of Egyptian banks and businesses to transact on letter of credit (L/C) terms.

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India's refiners anticipate L/C benefits

India's state refiners are hoping for better letter of credit (L/C) terms as they jointly negotiate oil purchase deals with OPEC producers.

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Bankers in Bangladesh charged in L/C fraud case

Bangladesh's Anti Corruption Commission (ACC) has brought charges against five bankers and four others for their part in an alleged US$32 million letter of credit (L/C) fraud.

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Standard Chartered banking on L/C business

Standard Chartered, the emerging market bank that is facing tough times in respect of poor oil and commodity prices in its key markets, is continuing to write letter of credit (L/C) business according to the bank's Dubai-based head of regional transaction banking.

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Iranian banks switch on to SWIFT

Several Iranian banks have reconnected to electronic messaging network SWIFT, enabling the banks to resume letter of credit (L/C) transactions with foreign banks after the lifting of sanctions on Tehran, according to SWIFT.

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Turkey and Sudan look to write more L/C business

Turkey and Sudan are contemplating ways of improving trade and investment links, including making letters of credit (L/Cs) more available for imports and exports between the two countries.

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L/Cs will shield Singaporean banks from Chinese economic shock

Letters of credit (L/Cs) will help insulate Singapore's banking sector from economic shocks from China according to Fitch Ratings.

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US set to ratify UN Convention on Independent Guarantees and Stand-by Letters of Credit

President Barak Obama has sent a message to the US Senate asking it to ratify the UN Convention on Independent Guarantees and Standby Letters of Credit (L/Cs).

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One year wait for L/Cs caused by Ethiopia's forex shortage

Ethiopia's shortage of foreign exchange has become so critical that opening a letter of credit (L/C)can now take one year or in some cases longer.

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China releases Trafigura oil trader in L/C fraud case

A Beijing-based oil trader involved in a fraud that allegedly employed fraudulent letters of credit (L/Cs) has been released on bail.

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DBS Bank looks to make up for lost Chinese L/C business

Singapore-based DBS Bank is looking to replace some of the substantial volume of letter of credit (L/C) business it has lost over the last year or so.

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Document discrepancies used to renegotiate Chinese commodity deals

Under pressure from customers, Chinese banks are using document discrepancies on letters of credit (L/Cs) to enable buyers to benefit from falling commodity prices.

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Central Bank of Egypt mulls L/C restrictions on automotive imports

Reports in Egypt indicate that the Central Bank of Egypt (CBE) is contemplating restricting the volume of letters of credit (L/Cs) made available for automotive imports.

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US relaxes Cuban L/C restrictions

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

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L/C difficulties may deter investors in Iran's oil tanker fleet

Continued difficulties transacting on letter of credit (L/C) terms may hinder Iran's endeavours to list its national tanker company.

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Invalid L/Cs lead Colombia to revoke exploration licenses

Colombia has revoked three hydrocarbon licenses after a consortium failed to provide the correct letters of credit (L/Cs) to the National Hydrocarbons Agency (NHA).

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L/C failures may hinder liberalisation of China's refinery sector

The failure of a Chinese refinery to obtain letters of credit (L/Cs) for fuel purchases could precipitate regulatory change and hinder China's efforts to liberalise its oil market according to the Bloomberg news agency.

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Libya introduces new L/C conditions

The Tripoli-based Central Bank of Libya (CBL) has announced several new conditions concerning letters of credit (L/Cs).

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Iran gears up for L/C transactions

Iran is gearing up to do significantly more business on letter of credit (L/C) terms now that international sanctions on its banks have been substantially lifted.

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Nepal extends L/C tenors to alleviate border problems

Nepal's central bank has ordered banks and financial institutions to extend letter of credit (L/C) tenors due to difficulties importers have had with shipments blocked at the country's border with India.

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Deutsche Bank securitises trade finance portfolio with L/Cs an asset

Deutsche Bank has announced that it has securitised an entire trade finance portfolio, which is proving attractive to institutional investors.

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Nigeria's trading partners may seek cash collateral prop for L/Cs

Analysts have warned that Nigeria's declining foreign exchange reserves could cause concern amongst the country's trading partners, who may insist on cash collateral to support letter of credit (L/C) transactions.

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American Express predicts L/C decline

A whitepaper published last month by American Express FX International Payments, argues that while letters of credit (L/Cs) still play an important role in international payment systems, a decline in documentary credit usage should be anticipated.

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L/C boost for Taiwanese agricultural exporters

Taiwanese exporters of agricultural products look set to benefit from improved letter of credit (L/C) availability from the Agricultural Bank of Taiwan (ABT).

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Nigeria confirms forex priority for hydrocarbon and raw material L/Cs

The Central Bank ofNigeria (CBN) has confirmed that ensuring foreign exchange is available for letter of credit (L/C) transactions for hydrocarbon and raw material imports are key priorities for the Nigerian banking sector.

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ICC Trade Register illustrates low risk profile of L/Cs and trade finance

The International Chamber of Commerce (ICC) Banking Commission has released its 2015 Trade Register, which illustrates the favourable risk profile of letters of credit (L/Cs) and trade finance compared with other investment grade offerings.

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India's Exim Bank makes L/Cs available for exports to Democratic Republic of Congo

Export-Import Bank of India (Exim Bank) has entered into an agreement with the Democratic Republic of Congo (DRC) to provide a US$34.5 million credit line for exports of Indian goods and services.

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Afreximbank offers L/C support to banks impacted by adverse economic shocks

The African Export-Import Bank (Afreximbank) has launched a US$3.5 billion trade finance package that includes letters of credit (L/Cs) and guarantees to help member countries adjust to prevailing adverse economic shocks.

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Ghana's guarantees for utility L/Cs raise concerns

The Volta River Authority (VRA), which generates and supplies power for Ghana's needs, has agreed to a new financing arrangement after banks refused to provide letters of credit (L/Cs).

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Egypt's banks adopt strict L/C measures

Banks in Egypt are adopting strict measures before issuing letters of credit (L/Cs) for foreign transactions.

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Iran's petrochemicals companies look forward to L/C supply

Petrochemical suppliers in Iran are strengthening their internal financial processes and contemplating direct letter of credit (L/C) transactions in preparation for the anticipated easing next year of sanctions imposed on the Islamic republic.

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Myanmar's Cooperative Bank signs up to AFD's trade finance programme

Myanmar's Cooperative Bank (CB Bank) has signed an agreement to participate in the Asian Development Bank's (ADB's) Trade Finance Programme (TFP).

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Afreximbank offers L/C assistance to Egypt

The African Export-Import Bank (Afreximbank) has said it will arrange a facility of up to US$1 billion for the Central Bank of Egypt (CBE).

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Availability of L/Cs may be assisting Sudanese sugar smugglers

Availability of letters of credit (L/Cs) may be a factor behind Sudan becoming a regional entrepôt for sugar smuggling.

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L/C concerns as IMF signals milestone in the adoption of the yuan as a global currency

Sharp increases in volumes of renminbi denominated letters of credit (L/Cs) seem to have been a factor behind the International Monetary Fund's (IMF's) decision to confer Special Drawing Rights (SDR) on the yuan.

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Kuwait Finance House reports surge in L/C and guarantee business

Kuwait Finance House (KFH) has reported a huge surge in the volume of bank guarantees and letter of credit (L/C) transactions it handled in the third quarter of 2015.

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Three charged in Ethiopian L/C fraud case

Three men are facing criminal charges in the Ethiopian Federal High Court for allegedly using a forged letter of credit (L/C) to transfer the equivalent of around US$3 million to a foreign bank.

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Emirates Islamic launches online L/C and trade finance platform

Emirates Islamic has launched a fully integrated sharia compliant online trade finance and supply chain platform.

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KeyBank opts for BNY Mellon's private label trade services

BNY Mellon is to provide private label trade processing services to US-based KeyBank.

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Indian business mogul face charges for L/C fraud

India's Central Bureau of Investigation (CBI) is pressing charges related to letter of credit (L/C) frauds against a prominent but controversial business mogul.

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Lack of L/Cs a factor in Nigeria's fuel shortages

A lack of letters of credit (L/Cs) may be a reason behind a fresh round of fuel shortages in Nigeria and a backlog of gasoline waiting offshore to be unloaded.

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L/C to underpin deal for Iran to pipe gas to Iraq

Iraq will provide a letter of credit (L/C) to guarantee payments under a new contract to buy Iranian natural gas.

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Dubai court hears L/C fraud case

A Sudanese businessman allegedly falsely obtained a EUR 1.1 million letter of credit (L/C) and a certificate of origin of cargo from Dubai Chamber of Commerce and Industry, Dubai Criminal Court has heard.

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L/C demands a barrier to business growth in the UAE

Demands for letters of credit (L/Cs) as payment guarantees are a barrier to small business development and growth in the UAE according to the owner of a business based there.

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Lowered S&P rating may push Saudi Arabia's L/C and guarantee costs up

Costs associated with letter of credit (L/C) transactions may be pushed up by Standard & Poor's (S&P's) recently lowered rating of Saudi Arabia according to a prominent businessman.

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Egyptian Steel overcomes L/C and energy shortages to quadruple production

Egyptian Steel is pushing ahead with ambitious expansion plans to more than quadruple production, despite widespread shortages of letters of credit (L/Cs) and energy that have put the brakes on the activities of most firms in Egypt's steel sector.

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Lack of L/Cs set to hamper Pakistan's rice export competitiveness

Pakistan's rice exporters are raising concerns about the lack of letters of credit (L/Cs) for exports to Iran if Tehran lifts its year-long ban on Pakistani rice imports.

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New international trade and finance initiative in Singapore to feature L/C training

Students in Singapore will be able to gain an understanding of letters of credit (L/Cs) alongside a working knowledge of other financial instruments and practices in international trade and finance in a new multi-partnership initiative.

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Egypt insists on L/Cs to guarantee gas deliveries from BP and RWE

The Egyptian General Petroleum Company (EGPC) has entered into a letter of credit (L/C) agreement to ensure it receives deliveries of gas from the giant North Alexandria gas field.

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OCBC Bank licensed to issue L/Cs in Singapore for Dubai Mercantile Exchange

Dubai Mercantile Exchange (DME) has announced that Singapore-headquartered OCBC Bank has become the latest financial institution to receive approval for issuing letters of credit (L/Cs) for trading on the exchange.

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New Central Bank of Egypt governor promises action on L/C flows

The new governor of the Central Bank of Egypt (CBE), Tarek Amer, has promised action to revive the flow of letters of credit (L/Cs) for Egyptian businesses.

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Nigerian businesses hit by L/C shortage

A shortage of letters of credit (L/Cs) is having a negative impact on Nigerian small businesses according to the managing director of Kresta Laurel, an importer of material handling equipment.

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Exim Bank shutdown forces US exporters to L/C terms

US exporters are turning to letters of credit (L/Cs) as the Export-Import Bank of the United States (Exim Bank) remains closed for new business.

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Egyptians look to new governor to revive L/C flows

Bankers and importers in Egypt that have struggled to do business on letter of credit (L/C) terms have welcomed the decision of President Abdel Fattah Al-Sisi to appoint a new central bank governor.

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SWIFT launches L/C and payments service

SWIFT has launched a new analytics service that allows clients to analyse their payments and letter of credit (L/C) data over the global messaging platform's system.

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Tough action on Libyan L/C abusers

The Tripoli-based Libyan Audit Bureau (LAB) has issued a ruling freezing the bank accounts of 160 companies and individuals accused of smuggling foreign currency, falsifying official documents and evading customs duties.

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Ecobank Nigeria and Deutsche Bank sign MoU for L/C cooperation

Deutsche Bank and Ecobank Nigeria have signed a memorandum of understanding (MoU) to expand their trade finance relationship.

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New applications to enable instant L/C and guarantee approval in India

New applications launched by India's Axis Bank will enable letters of credit (L/Cs) and bank guarantees to be approved instantly.

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Renminbi increases its share of global L/C issuance

The Renminbi (RMB) increased its share in the global issuance of letters of credit (L/Cs) and entered the top four of world payment currencies by value in August 2015, according to global transaction services organisation, SWIFT.

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Nepalese L/C issuance plummets by 60 per cent

Issuance of letters of credit (L/Cs) by Nepalese banks has dropped significantly in the wake of restrictions imposed by India on shipments to Nepal.

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British Grand Prix may be cancelled as L/C doubts emerge at Silverstone

Formula One chief executive, Bernie Ecclestone, has said that the future of the British Grand Prix is in doubt after the managing director of Silverstone, the track which hosts the motor race, revealed financial difficulties.

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Sri Lanka imposes 100 per cent margin on L/Cs for vehicle imports

Sri Lanka has imposed a 100 per cent cash margin on letters of credit (L/Cs) for motor vehicle imports.

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Troubled Glencore shares L/C details with investors

Glencore has shared details of its letter of credit (L/Cs) arrangements along with other financial information in a bid to reassure its investors that it is financially robust.

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L/Cs at risk in money laundering operations

Accuity, a provider of payment efficiency and compliance solutions that include anti-money laundering and counter terrorist financing, is highlighting the risk of letters of credit (L/C) being used by money launderers.

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Egyptian fertiliser producer resolves L/C problem

An Egyptian company appears to have resolved problems in respect of obtaining letters of credit (L/Cs) required for a contractor to resume work on a major construction project.

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Lebanon reports L/C decline as Syrian crisis impacts on trade

Lebanon has reported a sharp fall in the value of letter of credit (L/C) openings over recent months.

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L/C dispute jeopardises deal for Pakistan to buy gas from Qatar

Disagreement over letter of credit (L/C) terms is one of several factors jeopardising a huge deal for Pakistan to import liquefied natural gas (LNG) from Qatar.

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Exim Bank India makes L/Cs available for Nicaraguan power improvements

Export-Import Bank of India (Exim Bank India) has entered into an agreement with Nicaragua to provide a US$26.24 million credit line for exports of Indian goods and services.

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Indonesia lifts L/C requirement for oil and gas exporters

Indonesia has partially lifted its requirement for certain exports to be sold only on letter of credit (L/C) terms.

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Libya ready to launch new import and L/C controls

Libya's ministry of economy says it is ready to introduce an electronic import regulatory system.

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Myanmar and Asian Development Bank sign L/C guarantee scheme

The government of Myanmar and the Asian Development Bank (ADB) have signed a framework agreement that will allow ADB to expand its Trade Finance Programme (TFP) into Myanmar.

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South Sudan's L/C scheme still failing

Merchants in South Sudan say they are being denied access to letters of credit (L/Cs) as the country struggles to stabilise its currency.

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L/Cs employed in Libyan foreign currency smuggling

The Libyan Audit Bureau (LAB) has reportedly said that at least eleven Libyan companies are known to have fraudulently smuggled foreign currency abroad through fake import transactions.

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Bermuda launches L/C guarantee scheme

The government of Bermuda has introduced a letter of credit (L/C) based scheme that will make it easier for the island's small businesses to import goods.

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L/Cs could help bridge Africa's infrastructure gap

Letters of credit (L/Cs) could play a key role bridging Africa's infrastructure gap according to an Africa-based executive of a US-headquartered multinational institutional investment company, National Standard Finance (NSF).

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Pakistan mulls big cash margin on L/Cs for luxury goods

Pakistan's central bank is considering imposing a hefty cash margin on letters of credit (L/Cs) used to import luxury goods in its efforts to stem the decline of the rupee against the US dollar.

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Bank Audi-Egypt looks to Europe for help with L/C availability

Bank Audi-Egypt is reportedly in talks with two European development banks with a view to securing dollar liquidity and ensuring letter of credit (L/C) flows.

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Nigerian oil dealers required to prove L/C capability in bidding round

Nigeria's crude oil off-takers will need to show that they are capable of raising letters of credit (L/Cs) under new crude oil term contracts expected soon from the Nigerian National Petroleum Corporation (NNPC).

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More confusion over Indonesia's new L/C rules for commodity exports

Indonesia's top miner, PT Timah, has emerged as another large metals and minerals producer to struggle with the country's new legislation on letters of credit (L/Cs) for exports of certain commodities.

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India's Exim Bank makes L/Cs available for exports to Chad

Export-Import Bank of India (Exim Bank) has entered into an agreement with Chad to provide a US$18.08 million credit line for exports of Indian goods and services.

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India calls on OPEC to drop L/C terms

India's petroleum minister, Dharmendra Pradhan, is calling on OPEC oil exporters to drop their insistence that letters of credit (L/Cs) must be used in oil transactions.

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Egypt blames L/C difficulties for vehicle shortages

Egypt's vehicle agents and distributors appear agreed that sales in the Egyptian automotive market have been badly affected by a shortage of foreign exchange and letters of credit (L/Cs).

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Improved L/C availability behind rapid growth of Chinese purchases of Dubai crude

Improved letter of credit (L/C) availability appears to have helped precipitate a major change in the pattern of crude oil purchases by Chinese oil companies.

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Freeport McMoRan halts copper exports from Indonesia due to L/C arrangements

The Indonesian subsidiary of US mining giant Freeport McMoRan, has ceased exporting copper concentrate after its letter of credit (L/C) suspension expired in July.

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Puerto Rico defaults on ambiguous L/C-backed bond

Puerto Rico has defaulted on a US$58 million bond payment that is guaranteed by a letter of credit (L/C), the terms of which appear ambiguous.

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OFAC warns of tougher enforcement of sanctions on Crimea

The US Department of theTreasury's Office of Foreign Assets Control (OFAC) has signalled its intention to step up its enforcement of sanctions aimed at Russia on account of its military and political interventions in Ukraine.

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Mizuho Bank to provide L/Cs in new Myanmar branch

Mizuho Bank of Japan has opened a branch in Yangon, Myanmar'slargest city, making it the latest of several foreign banks able to write letter of credit (L/C) business in the Southeast Asian state.

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Strategic partnership to improve access to L/Cs for US exporters

FirstMerit Corporation has signed a strategic partnership agreement with the US Department of Commerce's International Trade Administration (ITA) that aims to improve access to L/Cs and provide other trade advantages to US exporters.

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Inter-American Development Bank and OPEC Fund for International Development collaboration to provide L/C facilities

The Inter-American Development Bank (IDB) and the OPEC Fund for International Development (OFID) have signed a co-lending agreement with the aim of improving access to trade finance in Latin America and the Caribbean.

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Seminar focuses on L/C discrepancies and trade disputes

A recent seminar in India has heard claims that the vast majority of letter of credit (L/C) transactions are flawed.

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US company settles sanctions violation revealed by L/C documentation

John Bean Technologies Corporation (JBT) has settled charges that it violated US economic sanctions imposed on Iran when it presented a letter of credit (L/C) naming a sanctioned entity, Islamic Republic of Iran Shipping Lines (IRISL).

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Doubts cast over future of US Ex-Im Bank's L/Cs for small businesses

Doubts have been cast over the future ability of the US Export Import Bank's (Ex-Im Bank's) ability to provide letters of credit (L/Cs) for the country's small businesses.

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Trafigura's Beijing-based marketer may face L/C fraud charge

Chinese police may soon formally charge an employee of Swiss trading giant Trafigura for fraudulently obtaining letters of credit (L/Cs) according to the Reuters news agency.

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Bloomberg sounds warning over China's use of L/C enhanced offshore bonds

Data and media company Bloomberg has expressed concerns over the now widespread use of standby letters of credit (SBL/Cs) to enhance China's offshore bonds.

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Former executives of bankrupt law firm obtained L/Cs to guarantee salaries

Former top executives of Dewey & LeBoeuf LLP, the law firm now in bankruptcy, obtained letters of credit (L/Cs) to ensure that they were paid, even if the now-defunct firm failed to do so.

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Money laundering concerns expected to delay resumption of L/C business with Iran

Iran's landmark nuclear deal with Western countries and the lifting of trade sanctions to follow opens the way for banks to resume links with their Iranian counterparts and, in due course, write letter of credit (L/C) business with the Islamic republic.

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Bank accomplice suspected in Indian L/C fraud

A 37-year-old law graduate has been arrested in India for allegedly duping a Korea-based bank into paying the equivalent of around US875,000 on the basis of what turned out to be a fake letter of credit (L/C).

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Standby L/Cs could be targeted over uranium pollution concerns in Malawi

Payment from standby letters of credit (L/Cs) may be sought if community and official concerns continue to mount over fears that Uranium Miner Paladin Africa Limited may be discharging toxic waste into Lake Malawi.

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India's Exim Bank makes L/Cs available for exports to Djibouti

Export-Import Bank of India (Exim Bank) has entered into an agreement with Djibouti to provide a US$15.13 million credit line for exports of Indian goods and services.

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Nokia selects GTC's multi-bank platform for L/Cs and bank guarantees

Nokia Corporation has selected GlobalTrade Corporation's (GTC's) @GlobalTrade multi-bank trade finance platform for managing export letters of credit (L/Cs) and bank guarantees globally.

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RBS international L/C and guarantee business referred to BNP Paribas

Royal Bank of Scotland (RBS) has said it will no longer offer transaction services to customers who need cash management and trade finance capabilities outside the UK and the Republic of Ireland through its international country network.

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Tesla Motors new commercial US$500 million credit line includes L/C facilities

Letters of credit (L/Cs) are included in a new working capital financing deal secured by electric car new-start, Tesla Motors.

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London reports fast decline in renminbi denominated L/Cs

The value of renminbi (RMB) denominated letters of credit (L/Cs) transacted in London has fallen away sharply according to a new report.

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DBS to issue L/Cs for Dubai Mercantile Exchange

Dubai Mercantile Exchange (DME) has announced that DBS Bank's Singapore office has been approved to issue letters of credit (L/Cs) for trading crude oil on the exchange.

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ICICI Bank and Alibaba.com partner to provide L/Cs and bank guarantees

ICICI Bank of India has announced that it has partnered with China's Alibaba.com to launch a trade facilitation centre that will provide services including letters of credit (L/Cs) and bank guarantees.

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Indo-Iranian joint venture eyes post-sanctions opportunities

A joint venture between Tehran-based Middle East Bank (MEB) and Mumbai-based IndAsia Fund aims to explore trade and investment opportunities for Iranian and Indian businesses if sanctions on the Islamic republic are eased at the end of June.

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Myanmar plans L/C scheme to ease foreign currency shortage

Myanmar is planning to introduce a scheme to make letters of credit (L/Cs) available to importers of fuel and palm oil.

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L/Cs feature in interim settlement between US aluminium giant and Jamaican government

Letters of credit (L/Cs) feature in an interim agreement reached in a dispute between Noranda Aluminum Holding Corporation of the US and the Jamaican government.

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Afreximbank bolsters L/C guarantee scheme

The African Export-Import Bank (Afreximbank) is to introduce a special guarantee facility to enable African processing plants to secure long-term export contracts with bank backing.

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South Sudan's central banker does not want to manage L/C scheme

The governor of South Sudan's Central Bank (SSCB) has advised the country's National Assembly that the bank does not want the power to decide which importers should be allowed access to letters of credit (L/Cs) with which to import food, fuel and other essential items.

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L/Cs on the decline say corporate treasurers

Letters of credit (L/Cs) are on the decline according to a recent survey of corporate treasurers.

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Survey reports rising L/C costs

A recent survey has found that letter of credit (L/C) costs have risen since the 2008 financial crisis.

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Sberbank issues Russia's first yuan denominated L/Cs

Sberbank has issued its first yuan denominated letters of credit (L/Cs), becoming Russia's first bank to do so.

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Statoil's L/C consolidation apparently a success

International energy company, Statoil, has implemented new trade finance arrangements over the past two years that has involved the consolidation of its letter of credit (L/C) management.

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UK government agency encourages exporters to trade on L/C terms

British businesses wanting to export to emerging markets should consider the value of using letters of credit (L/Cs) to help secure funding according to UK Export Finance's (UKEF's) export finance adviser Paul Wright.

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China sees increase in L/C business alongside surge in non-performing loans

Uptake of letters of credit (L/Cs) is increasing as non-performing loans (NPLs) at commercial banks continue to rise according to China's top banking regulator.

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Alternative lender offers L/Cs and bank guarantees for UAE-based SMEs

Small- and medium sized enterprises (SMEs) in the UAE may be set to benefit from improved access to letters of credit (L/Cs) and bank guarantees with the launch of Gulf Finance Corporation's (GFC's) suite of trade finance solutions.

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Slow rehabilitation of Iran's banks anticipated if sanctions are lifted

Iran's banks may be about to be formally allowed back into the global financial system, but analysts suggest a return to normal letter of credit (L/C) business for Iranian financial institutions may be a more distant prospect.

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Tripoli bans selected L/C transactions

In conflict riven Libya, the Tripoli-based authorities have passed a decree banning imports of 32 items on letter of credit (L/C) terms for 6 months.

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India improves access to L/Cs for earthquake stricken Nepal

Export-Import Bank of India (Exim Bank) has entered into an agreement with Nepal to provide a billion US dollar credit line for exports of Indian goods and services.

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Exemption window for L/Cs if Pakistan imposes new tax on previously exempted imports

Letters of credit (L/Cs) will be exempt from a new sales tax for a short window if Pakistan's government introduces, as anticipated, the tax on previously exempted items in the federal 2015-16 budget.

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High Court rules Bank Mellat damages claim against L/C and other losses should proceed

The High Court of Justice of England and Wales has rejected the British government's attempt to delay a hearing in which Iran's Bank Mellat is seeking US$4 billion damages from the UK Treasury.

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Pressure on US commission to drop L/C requirements for smaller firms participating in rural broadband programme

A US telecommunications industry association and a competition watchdog have urged the Federal Communications Commission (FCC) to drop its requirement for bidders to put up a letter of credit (L/C) in order to participate in its programme to expand rural broadband services.

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WTO director general comments on L/C availability in poorer countries

Poor access to letters of credit (L/Cs) and a lack of trade finance in general is impacting on global development, according to the World Trade Organisation's (WTO's) director general, Roberto Azevêdo.

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Ghana's banks withdraw L/Cs from fuel market

Twelve of Ghana's major commercial banks have said they will not issue letters of credit (L/Cs) to the country's bulk oil distribution companies (BDCs).

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India's state-run companies complain about government L/C guidelines

Some of India's largest state-run companies have complained to officials that government organisations and states are not accepting letters of credit (L/Cs) issued by private banks.

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Russian banks' L/C offering too limited for commodity exports

Russian banks are losing out to their European competitors in terms of financing the huge volume of the country's natural resource and commodity exports, according to a Switzerland-based international trade consultant.

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L/C woes continue for Nigerian fuel importers

The Nigerian government has issued Sovereign Debt Notes (SDNs) to the country's fuel importers in an attempt to restore the use of letters of credit (L/Cs) in the market, but the move appears not to have had the desired impact.

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Qianhai issues L/C enhanced bond, despite concerns

Qianhai Financial Holdings of China has successfully launched a renminbi denominated bond issued in Hong Kong.

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South Sudanese officials deny L/C abuse

Officials in South Sudan's Northern Bahr el Ghazal state government have denied allegations that they used letters of credit (L/Cs) meant for low-cost food imports for personal gain.

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Egypt eases commissions on L/C openings but US dollar shortages remain

The Central Bank of Egypt (CBE) has reduced commissions on opening letters of credit (L/Cs) from 2.5 per cent to 1.5 per cent.

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Chinese solar manufacturers request non-L/C terms

Chinese manufacturers of photovoltaic solar (solar PV) equipment have reportedly asked some of their Taiwan-based suppliers of solar cells to sell products on open account terms with credit facilities.

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Canada makes first renminbi cross-border payment in the Americas

Canada has become the first country in the Americas to complete a cross-border payment in its capacity as an offshore clearing and trading centre for the renminbi (RMB).

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Bolero announces first ePresentation against L/C into India

The world's first electronic presentation of documents (ePresentation) into India has been sent over Bolero's online network, suggesting a growing demand for electronic trade processes into and out of the country.

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Pakistan eases import L/C and bank guarantee requirements

The State Bank of Pakistan (SBP) has eased its requirement for importers to use letters of credit (L/Cs) or bank guarantees when providing advance payment facilities.

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BPOs yet to make a dent in L/C market

The much heralded bank payment obligation (BPO) appears not yet to have made a significant dent in the letter of credit (L/C) market.

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Ukraine cancels L/C requirement

Ukraine's central bank on 10 April cancelled the requirement that importers must use letters of credit (L/Cs) to purchase goods.

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Confusion over Indonesia's new L/C requirement

There is confusion amongst Indonesia's coal miners as to how new legislation requiring letters of credit (L/Cs) to be used for coal exports will be applied.

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Chicago faces L/C payments in fiscal free fall

Banks could demand payment from the US city of Chicago against letters of credit (L/Cs) if it continues its fiscal free fall.

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Clearing house changes L/C rules from shareholders' equity to Tier 1 Capital

The US clearing house that provides central counterparty clearingandsettlementservices to 14 exchanges is proposing changes to the measurement it uses to establish minimum capital requirements for banks approved to issue letters of credit (L/Cs).

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Sanctioned Iranian bank says its biggest losses are L/C commissions

Bank Mellat has lost more in letter of credit (L/C) commissions than any other bank services according to lawyers representing the bank in a UK court case.

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India improves L/C access for exports to Cuba and Myanmar

Export-Import Bank of India (Exim Bank) has entered into agreements with Cuba and Myanmar to provide multi-million US dollar credit lines for exports of Indian goods and services.

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Surging US dollar could make L/Cs scarce in Europe

The surging US dollar should be causing concerns for European traders and ship owners according to an analyst at Allied Shipbrokers.

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US indictments for alleged L/C fraudsters

Three people in the US have been indicted in connection with a multimillion US dollar fraud that incorporated illegally obtained letters of credit (L/Cs).

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Emirates rejects US accusations of US$1.6 billion of L/Cs from Dubai government

Emirates airline has countered accusations that it received letters of credit (L/Cs) and subsidies from the Dubai government.

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L/C difficulties behind Zambia's fuel shortages

A lack of letters of credit (L/Cs) is being blamed for severe fuel shortages in Zambia.

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L/Cs feature in Pakistan's private sector energy policy

Pakistan has revealed that letters of credit (L/Cs) will feature in arrangements to increase private sector participation in the energy sector.

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Route to L/Cs blocked by Egypt's currency reforms

Letters of credit (L/Cs) in Egypt have become harder to come by as a result of the government's attempts to curb black market foreign exchange deals.

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L/C difficulties behind Nigeria's fuel shortages

A shortage of petrol in some Nigerian states is due to the inability of petroleum marketers to obtain letters of credit (L/Cs) from commercial banks for fuel imports according to Nigeria's fuel regulator.

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L/Cs employed in alleged US$32 million fraud

Letters of credit (L/Cs) were employed in an alleged US$32 million fraud arranged between an oil trader working for Qingdao United Energy and a worker at commodities trading house, Trafigura.

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Ukraine orders L/Cs for transactions in excess of US$500,000

Ukraine's central bank has ordered that letters of credit (L/Cs) must be used for currency payments of more than US$500,000.

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Euler Hermes reveals figures behind shift towards L/Cs by Hong Kong's exporters

Credit insurer Euler Hermes has revealed figures indicating why Hong Kong's exporters are increasingly insisting on letter of credit (L/C) terms (DC World News, 9 February 2014).

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Unicredit signals shift from L/Cs to BPO

A senior trade financier at Unicredit has said he is seeing a significant shift from letter of credit (L/C) to open account terms.

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Renminbi confirms its second place in L/C currencies

The Chinese Renminbi (RMB) has confirmed its position as the world's second most used currency in letters of credit (L/Cs).

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Direct L/Cs for South Korean exports to Cuba

South Korean exporters look set to benefit from a new arrangement to obtain letters of credit (L/Cs) direct from Banco Exterior de Cuba (BEC).

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L/Cs feature in scheme to ensure reliable fuel for Ghana's armed forces

Letters of credit (L/Cs) feature in a new structure aimed at ensuring that vehicles and facilities used by Ghana's armed forces are reliably supplied with fuel.

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Reserve Bank of India lifts ban on L/Cs for gold imports

The Reserve Bank of India (RBI) has lifted its ban on letters of credit (L/Cs) for gold imports.

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Citibank Indonesia expects 30 per cent L/C growth

Citibank Indonesia expects its international trade finance business will grow by 30 per cent this year as a result of the re-introduction of a requirement for letters of credit (L/Cs) to be used for certain commodity exports.

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Uncertainty over L/Cs in Greece-EU dispute

The new Greek government's reluctance to accept EU proposals for an extension of its austerity-based bailout programme may result in letters of credit (L/Cs) becoming harder to come by.

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Indonesia to re-introduce L/C requirement for certain commodities

Indonesia's trade ministry has issued ministerial decree No. 4/2015 that requires letter of credit (L/C) usage for certain exported goods.

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Indonesian marine services provider uses standby L/Cs for bond issue

An Indonesian marine services provider to the country's offshore oil and gas industry has obtained a standby letter of credit (L/C) to back its newly completed US$37 million bond issue.

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South Sudanese politician accused of obtaining L/Cs using state funds

A politician in one of the ten states of South Sudan has been accused of using state funds to obtain letters of credit (L/Cs) for private purposes.

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Chinese buyers losing appetite for L/C terms

Chinese buyers are becoming more reluctant to agree to letter of credit (L/C) terms according to Euler Hermes.

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Properties seized from Indian businessman in L/C fraud case

The government agency charged with implementing India's anti-money laundering law has seized properties from industrialist, Grandhi Eswara Rao.

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IFC backing for L/Cs and guarantees from Nepal's NMB Bank

The International Finance Corporation (IFC) is making US$5 million available to improve access to letters of credit (L/Cs) and bank guarantees for Nepalese small businesses.

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ING Bank to issue L/Cs for Dubai Mercantile Exchange in Singapore

ING Bank Singapore Branch has become the latest bank to be approved to issue letters of credit (L/Cs) for trading on Dubai Mercantile Exchange (DME) directly from Singapore.

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Helicopters in London aim to facilitate transatlantic L/C business

Express delivery company, DHL is launching helicopter services to beat London's traffic jams.

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UK non-bank L/C provider up for industry awards

Legion Trade Finance, one of a growing number of non-bank letter of credit (L/C) providers in the UK, has been shortlisted for two industry awards.

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Sudanese Egyptian Bank signs L/C and guarantee software agreement with Path

Path Solutions has signed a strategic agreement that provides software Shariah compliant letters of credit (L/Cs) and guarantees with Sudanese Egyptian Bank (SEB).

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L/Cs playing an integral part building China's debt mountain

A leading banker in Asia has warned about the role played by letters of credit (L/Cs) in increasing the size of China's growing debt mountain.

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L/Cs behind unprecedented petrol shortages in the Punjab

Letter of credit (L/C) difficulties at Pakistan State Oil (PSO) and poor information flows from Pakistan's ministry of petroleum and natural resources are being blamed for unprecedented petrol shortages in the Punjab.

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Chinese state-owned conglomerate reports L/C repayment failures

Subsidiaries of a Chinese state-owned firm have missed millions of US dollars' worth of payments on their letters of credit (L/Cs).

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Disagreement in FTA talks stalls better L/C provision for Pakistan's trade with China

Improved access to letters of credit (L/Cs) for trade between Pakistan and China is being stalled as the two countries struggle to reach agreement on tariff reductions.

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Serial fraudster used L/Cs to dupe victims

A serial fraudster who included fraudulent letters of credit (L/Cs) in his array of instruments for duping his victims, has pleaded guilty to several charges.

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Mizuho Bank to issue L/Cs for Dubai Mercantile Exchange in Singapore

Dubai Mercantile Exchange (DME) has announced that Mizuho Bank has been approved to issue letters of credit (L/Cs) for trading on DME directly from Singapore.

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Confidence in L/Cs features in Nigerian election campaigning

Nigeria's reputation for writing letter of credit (L/C) business in international trade is featuring in the country's presidential election campaign.

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Bogus L/C warning for South Korean banks

South Korea's Financial Supervisory Service (FSC) has issued a warning to banks to beware of bogus letters of credit (L/C), purportedly issued by foreign banks.

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Details of fraudulent L/Cs at collapsed US health plan emerge

Details have emerged about the part fraudulent letters of credit (L/Cs) played in the financial collapse of a cooperative health insurer in the US state of Alabama.

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India extends credit for L/Cs for Rwandan agricultural products

Export-Import Bank of India (Exim Bank) has entered into an agreement with Rwanda to provide a US$120 million credit line for exports of Indian goods and services.

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Fraudster who promised lucrative L/Cs sentenced to 18 month jail term in Arizona

A court in the US state of Arizona has sentenced a man who promised investors letters of credit (L/Cs) that would bring them huge returns.

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Misappropriation of L/Cs debated in South Sudan's parliament

South Sudanese lawmakers have been debating how letters of credit (L/Cs) meant for much needed fuel imports came to be misappropriated by senior officials and business figures.

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Ship fuel suppliers steer away from L/Cs

Ship fuel suppliers in Asia and the Middle East are returning to open account terms, some six weeks after they sought less risky letter of credit (L/C) payment terms in the wake of a major market shock.

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Canada mulls L/Cs for pipeline companies

Canada may insist that pipeline companies put up letters of credit (L/Cs) to cover the costs of damage caused by fuel spillages from pipelines.

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China Petrochemical Development issue backed by standby L/Cs from two banks

China Petrochemical Development (CPD) of Taiwan has raised US$132 million from a convertible bond to help finance a new plant in the mainland Chinese province of Jiangsu.

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Indonesia to require L/Cs for mining and agricultural exports

The Indonesian government is planning to require exporters to use letters of credit (L/Cs) with the aim of boosting the country's foreign exchange reserves.

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L/Cs feature in alleged US$32 million gasoline trade fraud

Letters of credit (L/Cs) reportedly featured in an alleged US$32 million gasoline trade fraud for which two people have now been arrested.

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Chamber International support for small UK exporters

Reflecting a trend in the UK for more participation of non-bank providers in the documentary credit market, Chamber International is continuing to report setting up letter of credit (L/C) for small- and medium-sized enterprises.

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African confirming banks a 'major constraint' on trade says African Development Bank

A recently published report by the African Development Bank (AfDB) has identified the limited ability of Africa's confirming banks as one of the major constraints on meeting demands for trade finance on the continent.

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India extends credit for L/Cs for Niger water works

Export-Import Bank of India (Exim Bank) has entered into an agreement with the government of Niger to provide a US$25 million credit line for exports of Indian goods and services.

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Future uncertain for Indian L/C backed bond issues

The future of letter of credit (L/C) backed bond issues in India is in doubt after the central bank moved to ban another structure enabling Indian issuers to tap into offshore markets.

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Collapsed US health cooperative victim to L/C fraud

Letter of credit (L/C) fraud has been revealed at a recently collapsed health cooperative in the US state of South Carolina.

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Future of L/Cs for Iran remain in doubt

The future of letters of credit (L/Cs) for trade with Iran remains in doubt after Iran and six world powers failed to agree a deal over financial sanctions imposed on the Islamic republic as a result of its nuclear programme.

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Canadian council finds L/C solution for the temporarily homeless

A Canadian city council has considered letters of credit (L/Cs) a good tool for enabling a bylaw amendment to be passed that had previously been considered too open to abuse.

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Sberbank issues Russia's first yuan-denominated L/C

Russia's Sberbank has announced that it has issued the country's first yuan-denominated letters of credit (L/Cs).

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L/Cs feature in China-Pakistan Economic Corridor project

Letters of credit (L/Cs) feature in the financing structure of the multi-billion dollar China-Pakistan Economic Corridor project (CPEC).

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L/Cs dry up as Pakistan's circular debt problem spirals

Supplies of letters of credit (L/Cs) are drying up as circular debts in Pakistan's fuel sector reach record highs.

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Pakistan employs L/Cs to boost forex earnings

Pakistan is using letters of credit (L/Cs) in its strategy to help the country's beleaguered sugar industry and boost foreign earnings.

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China opens EUR 350 million of L/Cs for petrochemical plants in Iran

Chinese investors have opened multi-million euro-denominated letters of credit (L/Cs) for two petrochemical plants in Iran.

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Shipping fuel traders turn to L/Cs for safety after bankruptcy filing

Singapore-based bunker fuel suppliers are turning to letters of credit (L/Cs) in the wake of the world's largest ship fuel supplier filing for bankruptcy.

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L/Cs flowing for Russian wheat exports

Letters of credit (L/Cs) are flowing for Russian wheat exports after several weeks of very weak sales.

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Chiyoda Steel and Bank of China set for court in L/C dispute

Chiyoda Steel of Japan has reportedly said it plans to take Bank of China Hong Kong (BOC) to court over a dispute concerning a letter of credit (L/C) transaction.

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India's Exim-Bank to provide L/C facilities for Togolese power sector improvements

Export-Import Bank of India (Exim Bank) has entered into an agreement with the government of Togo to provide a US$52 million credit line for exports of Indian goods and services.

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Europe-Iran Forum mulls prospects for Iranian L/Cs

A recently formed forum of European and Iranian business leaders has been contemplating the prospects for letters of credit (L/Cs) if financial sanctions imposed on Iran that have been temporarily suspended are eased or lifted.

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Calls on Bangladesh Bank to ease L/C regulations

Business leaders in Bangladesh are calling on the country's central bank to ease letter of credit (L/C) regulations.

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Concerns over Solomon Islands' central bank support for commercial L/Cs

The Solomon Islands' multi-million US dollar logging industry is expressing concerns over reports that the central bank is acting as an agent for letters of credit (L/Cs) on behalf of the country's newest commercial bank.

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First German-Japan BPO processed

UniCredit and Bank of Tokyo-Mitsubishi have completed the first ever Bank Payment Obligation (BPO) transaction between Germany and Japan.

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Taiwan's banks to use L/Cs to guarantee loans for Chinese companies

Taiwanese bankers are looking to use standby letters of credit (L/Cs) to guarantee loans that Taiwan's state-owned banks extend to Chinese companies.

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Pakistani gas company shoulders government's L/C risk

Sui Southern Gas Company (SSGC) of Pakistan has reportedly approved the issuance of a standby letter of credit (L/C) worth US$50 million in favour of Elengy Terminal Pakistan Limited (ETPL) to cover penalties that may be payable if imported liquefied natural gas (LNG) supplies are delayed.

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China may use local currency L/Cs to pay for Russian gas

China may use renminbi (RMB) or ruble denominated letters of credit (L/Cs) to pay for Russian gas.

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Iranian banker says international banks still steering clear of L/Cs for Iran

International banks are steering clear of writing letter of credit (L/C) business with Iran for fear of being fined, according to an Iranian banker.

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L/Cs now flowing for Egyptian imports of Kuwaiti crude

Letters of credit (L/Cs) can now be issued to finance imports of Kuwaiti oil into Egypt.

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BNP Paribas exercises caution in Russian L/C business

BNP Paribas is no longer providing letters of credit (L/Cs) to finance commodities trades involving sanctioned Russian banks, according to a report in the Wall Street Journal

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Oman to provide export L/C guarantees

Oman's Export Credit Guarantee Agency (ECGA) has said it will soon introduce its Documentary Credit Insurance Programme (DCIP) to help the sultanate's banks engage in more letter of credit (L/C) business.

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Deutsche Bank and PTA Bank sign MoU to provide credit guarantees

Deutsche Bank and the Eastern and Southern African Trade and Development Bank (PTA Bank) have signed a memorandum of understanding (MoU) that aims to make letters of credit (L/Cs) easier to access for African buyers of US agricultural products.

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Banks tighten L/C controls as China announces US$10 billion of fake trades

Earlier this year it emerged that duplicate storage certificates used by a minerals trader at the port ofQingdao made Chinese banks reluctant to provide letters of credit (L/Cs) for commodities traders (DC World News, 2 July 2014 and 9 July 2014).

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RBS adopts SWIFT's universal L/C and guarantee platform

The Royal Bank of Scotland (RBS) has adopted the new SWIFT system that enables clients to generate a range of message types used for guarantees and letter of credit (L/C) transactions.

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South Sudanese L/C flows stemmed

Faced with a severe foreign exchange shortage, South Sudan's central bank has stopped selling US dollars to the world's newest country's commercial banks.

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L/C fraudster sentenced to jail term of more than eight years

A Greek man has been sentenced in a US court to eight years and five months in jail for his part in a multimillion dollar scam involving bogus letters of credit (L/Cs).

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Brazil eases requirements for standby L/Cs

The Central Bank of Brazil (CBB) has announced a reduction in the percentage banks must keep as a reserve when they issue standby letters of credit (L/Cs).

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Banks reluctant to issue L/Cs for fuel imports into Argentina

Banks are reluctant to issue letters of credit (L/Cs) for some imports of fuel into Argentina due to volatility in the market.

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First Chinese brokerage issues first bonds without L/C or similar enhancement

Haitong International Securities Group has bucked the trend of Chinese brokerages using standby letters of credit (L/Cs) or some other enhancement in a US dollar bond issue.

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BNY Mellon's L/C flows set to benefit from deal with German banks

BNY Mellon of the US has signed a trade processing partnership with German commercial bank, Landesbank Hessen-Thürigen (Helaba) and the G25, a group that represents Germany's 25 largest savings banks.

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Trade Technologies opens Seattle office

Trade Technologies, which claims to be the world's largest provider of outsourced trade document services and software, has announced the opening of an office in Seattle.

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Iran, Pakistan, Turkey and Central Asian states to boost L/C availability for inter-trade

The intergovernmental regional organisation that promotes economic, technical and cultural cooperation amongst Iran, Pakistan, Turkey and several Central Asian countries says it is to establish an agreement to promote trade amongst member countries.

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UK TV to highlight alternative trade finance providers

Two documentaries to be shown on UK television will highlight the role played by alternative providers of letters of credit (L/Cs) and other banking services for small- and medium sized enterprises (SMEs).

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RBS settles dispute with trade finance software provider

The Royal Bank of Scotland (RBS) has reached a settlement allowing it to carry on using trade finance software from provider Complex Systems to process letters of credit (L/Cs) and guarantees.

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US captive insurance industry disagreements over L/C usage

US insurance regulators are faced with disagreement amongst industry players as to whether letters of credit (L/Cs) should be used as collateral by captive insurers.

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Egypt transfers L/C issuing responsibilities for vegetable oil imports

Egypt has transferred responsibility for vegetable oil imports from one state-owned wholesaler to another.

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Russian sanctions bite on L/C flows

Sanctions imposed on Russia appear have reportedly stemmed the flow of letters of credit (L/Cs) for Russian oil exports.

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Jail for fraudster who used L/Cs in US mortgage scam

A man in the US state of Kansas has been has been sentenced to six years in prison for his role in a mortgage fraud conspiracy.

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US businessman faces charges for alleged L/C forgery

The president of a Florida-based janitorial company is facing charges after allegedly forging a letter of credit (L/C) to secure a US$1 million contract with a state agency, according to the Florida Department of Law Enforcement (FDLE).

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Tanzanian regulator calls for consolidation of L/Cs for petroleum imports

Tanzania's Energy and Water Utilities Regulatory Authority (EWURA) is looking to consolidate the way letters of credit (L/Cs) are used for petroleum imports with the aim of reducing costs.

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Bangladeshi traders call for L/Cs to boost trade with India

Traders in Bangladesh are calling for the dismantling of barriers that prevent them from writing direct letter of credit (L/C) business with India.

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L/C irregularities at Banco Espírito Santo

Letter of credit (L/C) irregularities have been reported at Portugal's troubled Banco Espírito Santo (BES).

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Canadian Ponzi scheme promised fee-earning L/Cs

The promise of fee-earning letters of credit (L/Cs) featured in a C$100 million Ponzi scheme uncovered by the British Columbia Securities Commission (BCSC).

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Moody's say L/C enhanced bonds meet standards for credit substitution

Moody's Investors Service has said that the bonds enhanced by standby letters of credit (L/Cs) meet the standards for credit substitution.

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EastWest offers new renminbi L/Cs for trade between the Philippines and China

East West Banking (EastWest) of the Philippines is to start offering renminbi-denominated letters of credit (L/Cs) and other banking products.

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Russian bank enters agreements to boost L/C and guarantee business with Africa

Russia's Sberbank has entered into co-operative agreements with two Moroccan banks with the aim of boosting the supply of letters of credit (L/Cs) and other trade finance services to Russian companies doing business in Africa.

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Lack of L/Cs may hamper UK firms' Iranian ambitions

Britain has recently announced plans to reopen the UK's embassy in Iran.

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New sanctions applied to Russian L/C transactions

Washington has imposed sanctions on Russia that restrict letter of credit (L/C) transactions with four of the country's largest financial and energy companies.

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Iranian businessman in US$2.8 billion L/C fraud executed

The billionaire businessman at the heart of Iran's US$2.8 billion letter of credit (L/C) based fraud has been executed.

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India eases L/C restrictions for imported diamonds

The Reserve Bank of India (RBI) has eased restrictions on letters of credit (L/Cs) for the import of diamonds.

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Ghanaian pharmaceutical companies face L/C shortage

Ghanaian pharmaceutical companies are unable to obtain letters of credit (L/Cs) because banks are concerned about the increasing amount of money the drugs firms are owed by their customers.

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Encashed standby L/Cs prompt Indian banks and jewellery industry to improve due diligence

Banks are to work with India's jewellery industry to improve due diligence measures in attempts to repair the creditworthiness of the country's jewellers.

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Qingdao port investigations may impact on L/C availability for smaller traders

Recently it emerged that duplicate storage certificates used by a minerals trader at the port of Qingdao have made Chinese banks reluctant to provide letters of credit (L/Cs) for commodities traders (DC World News, 2 July 2014).

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BNP's L/C business with Sudan features in record sanctions fine

Letters of credit (L/C) for trade with Sudan featured substantially in transactions handled by BNP Paribas that contravened US sanctions and led to the largest ever fine imposed on a bank for sanctions busting.

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Ghana releases cash for fuel to alleviate L/C crisis

Ghana has bailed out its Bulk Oil Distribution Companies (BDCs) to ensure sufficient fuel supplies at the country's filling stations.

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Qingdao port fraud adds to China's L/C woes

Duplicate storage certificates used by at least one minerals trader at the port of Qingdao are making Chinese banks even more reluctant to provide letters of credit (L/Cs) for commodities traders.

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Pakistan faces power shortages as L/C defaults trigger debt crisis

A multi-million US dollar letter of credit (L/C) default by Pakistan State Oil (PSO) has triggered an inter-corporate debt crisis that threatens power shortages in Pakistan.

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Italian banking group joins EIB's Greek facility

Italian banking group Intesa Sanpaolo has signed a EUR 75 million agreement with the European Investment Bank (EIB) to become a confirming bank in its Trade Finance Facility (TFF) for Greece.

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Surety bonds take place of L/Cs or bank guarantees in UK pension scheme

A London-listed company has become the first to use surety bonds in its funding strategy for its defined benefit pension plan.

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Vietnamese firms should use L/Cs in trades with Africa and the Middle East

Vietnamese firms are being encouraged to use letters of credit (L/Cs) in their endeavours to tap market opportunities in Africa and the Middle East.

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Trade finance salaries amongst the lowest in banking

Trade finance salaries feature amongst the lowest in the banking industry according to recent salary surveys.

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Investors still attracted to L/C enhanced Chinese bond issues

Despite new rules issued last month by the Chinese authorities, this month has seen a flurry of standby letter of credit (L/C) enhanced bond issues.

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Gulf concerns over L/Cs from State Bank of India

Qatar is reportedly refusing to accept letters of credit (L/Cs) issued by the State Bank of India (SBI), because it does not have an adequate credit rating.

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Cyprus lifts some L/C and bank guarantee restrictions

The government of Cyprus has lifted several restrictions on banks imposed under the island's recent austerity measures.

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US trade finance provider launches L/C alternative

Capital Business Credit (CBC) is marketing a new product that provides an alternative to letter of credit (L/C) financing specifically targeted at US importers buying from multiple Asian manufacturers.

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Bank of China clamps down on L/Cs for iron ore imports

One of China's big four state owned banks is making it more difficult for importers to obtain letters of credit (L/Cs) for iron ore.

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Canada insists on L/Cs or other payment guarantees for pipeline abandonment costs

Canada's National Energy Board (NEB) has said that pipeline companies under federal jurisdiction with plans for major oil projects to the west coast of British Columbia must put up a letter of credit (L/C) or another type of payment guarantee to pay for abandoning pipelines.

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Bolero announces first electronic back-to-back L/C transaction in China

A full electronic back-to-back letter of credit (L/C) transaction in China has been completed for the first time over Bolero's cloud-based platform.

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UBA's trade services overhaul provides non-L/C options for African traders

United Bank of Africa (UBA) says its overhauled trade finance product offering will make it easier for intra-African traders to transact on a non-letter of credit (L/C) basis.

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China simplifies system to provide alternative to L/C enhanced bonds

Chinese regulators are simplifying foreign-exchange rules to make it easier for companies to guarantee offshore debt offerings.

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Iran executes businessman convicted in L/C fraud case

Iran has reportedly executed a billionaire businessman accused and convicted of organising a US$2.6 billion letter of credit (L/C) fraud.

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Euler Hermes markets L/C alternative to UK firms

Euler Hermes is marketing what it describes as a deductible guarantee as an alternative to letters of credit (L/C) and bank guarantees to UK businesses.

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Chinese L/C shortages forces iron ore prices down

Chinese banks have limited letters of credit (L/Cs) for iron ore imports according to a trader in China's eastern Shandong province.

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Marubeni insists on L/Cs from Chinese soybean buyers

Marubeni Corporation is requiring its Chinese buyers of soybeans to obtain secure letters of credit (L/Cs) for their imports amidst an increasing number of defaults.

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More problems with L/Cs in Egypt

Letters of credit (L/Cs) have once more become hard to come by in Egypt as its financial crisis makes it difficult to pay for food imports.

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RBS ordered not to use software for L/Cs and guarantees

A US judge has ordered the Royal Bank of Scotland (RBS) to stop using trade finance software supplied by Complex Systems.

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Western banks still reluctant to write L/C business with Iran

Despite the easing of sanctions against financial institutions writing letter of credit (L/C) business with Iran, reports are continuing to emerge that documentary credits for imports to the Islamic republic remain hard to come by.

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UK chamber freezes L/C prices

A UK based chamber of commerce is freezing the prices of its letter of credit (L/C) prices in a bid to encourage more local exports.

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ADB provides L/C guarantees for Myanmar's Cooperative Bank

The Asian Development Bank (ADB) is providing letter of credit (L/C) guarantees to Myanmar's Cooperative Bank.

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Illinois residents object to wind farm L/C proposal

Residents in the US state of Illinois are calling on their local authority to refuse a wind power operator permission to put up a standby letter of credit (L/C).

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Indonesian bankers report trend towards open account

A leading banker in Indonesia says he is seeing open account trading become increasingly popular with customers.

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Pakistan Steel Mills' L/C boost for restructuring

The authorities in Pakistan have approved a multi-million US dollar restructuring package for Pakistan Steel Mills (PSM).

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Fransabank builds on Iraqi L/C experience

Lebanon's Fransabank is building on more than a decade of L/C provision to Iraqi businesses by opening a branch in the oil rich state.

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India cracks down on bank guarantees and L/Cs for Indian companies' overseas arms

The Reserve Bank of India (RBI) has imposed restrictions on credit facilities extended by banks to Indian companies' overseas arms.

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Trade between COMESA and Egypt hampered by lack of L/C usage

A forum involving Egyptian officials and business representatives along with their counterparts from countries in the Common Market for Eastern and Southern Africa (COMESA) has heard that not using letters of credit (L/Cs) is impeding business links between Egypt and the trade bloc.

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Gold price threat if China curbs L/Cs for financing-related purchases

World gold prices could come under pressure if the Chinese authorities curb the use of letters of credit (L/Cs) to purchase the precious metal for financing related reasons rather than to meet market demand.

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Chinese importers unable to open import L/Cs for soybeans

Chinese importers unable to open letters of credit (L/Cs) have defaulted on at least 500,000 tons of US and Brazilian soybean cargoes worth around US$300 million.

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Wheat for Egypt stuck in Russian port due to L/C problems

Two wheat cargoes purchased by Egypt are stuck at Russia's main Black Sea commercial port.

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Indian gas supplier asks for L/Cs to realise new price

One of India's major gas producers has turned to letters of credit (L/Cs) to ensure that urea manufacturers purchasing gas from them pay at a new price.

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Bangladesh set to improve import L/C availability

Import letters of credit (L/Cs) for Bangladesh's manufacturers to buy materials for exportable products look set to become more available as a result of an improved facility announced by the central bank.

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Vietnam's ambitions in Russia may be hampered by L/C difficulties

Vietnam is keen to boost its textile exports to Russia but there are concerns that the south-east Asian country will be hampered by several difficulties, including processing letters of credit (L/Cs).

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UAE mulls addition to L/C anti-money laundering monitoring

The UAE is contemplating new rules to bring the federation's anti-money laundering legislation in line with revised standards issued by the Financial Action Task Force (FATF).

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Devolved L/Cs feature in India's new stressed assets system

Devolved letters of credit (L/Cs) will be monitored under the Reserve Bank India's (RBI's) new system for identifying and monitoring stressed assets in the banking sector.

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UBI dismisses default worries with L/C explanation

United Bank of India (UBI) has dismissed reports claiming the bank is at risk of default by extending credit lines of around the US$132 million.

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Shariah compliant L/Cs and guarantees for Kenya

Standard Chartered has introduced its Shariah-compliant Saadiq service to Kenya.

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Unpaid L/Cs could disrupt European transactions if Russian sanctions are widened

Analysts are concerned that growing tension between the west and Russia over Crimea and the Ukraine may lead to more sanctions being imposed on Russian banks.

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Chinese aluminium smelters face L/C difficulties

China's aluminium producers are finding it "harder by the day" to obtain letters of credit (L/Cs) for raw material alumina imports as banks tighten credit.

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Finance minister refuses to issue L/Cs for Lebanon's electricity utility

Lebanon's finance ministry will not issue letters of credit (L/Cs) to Electricity du Liban (EDL) without the approval of the government.

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Western banks still reluctant to write L/C business with Iran

Western banks remain reluctant to resume normal letter of credit (L/C) business with Iran, despite Tehran's moves to restore international relations and global banking ties by assuring the world that its nuclear ambitions are peaceful.

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British non-bank L/C provision set to improve

The availability in the UK of letters of credit (L/Cs) from non-bank sources looks set to improve as one of Britain's growing band of alternative trade finance providers announces the opening of a third office.

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More concerns over standby L/C backing for US dollar corporate bonds

Standby letters of credit (L/Cs) issued by Chinese lenders to guarantee corporate US dollar bond sales are contributing to the issuers' own default risk according to a leading investment manager.

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Cyber-attack reveals L/Cs between India and Russia

A cyber-attack on Russian communication systems has revealed letters of credit (L/Cs), apparently in respect of defence contracts involving companies in India and Russia.

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Central Bank of Iran to open L/Cs for foreign business transactions

The governor of the Central Bank of Iran (CBI) says talks are advancing to restore banking relationships to allow the Islamic republic to write letter of credit (L/C) business on a normal basis.

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BankDhofar to improve availability of Sharia-compliant L/Cs and bank guarantees in Oman

Maisarah Islamic Banking services, the Islamic window of BankDhofar, is to open four more branches in Oman by the end of this year.

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Iran and China agree to improve L/C flows

Iran and China have reportedly agreed to improve the flow of letters of credit (L/Cs) between the two countries.

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Uncertainty over bonds featuring standby L/C enhancement

Regulators on the Chinese mainland may already have banned the use of standby letters of credit (L/Cs) to enhance offshore bond issues.

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Myanmar mulls L/C introduction

As Myanmar seeks to establish a position in the global economy after years of isolation, its government is looking at the possibility of improving access to letters of credit (L/Cs) in its banking system.

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Beijing Energy bond issue features standby L/C enhancement

Beijing Energy has chosen to include a standby letter of credit (L/C) in its debut US dollar-denominated bond.

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EBRD support for small business L/Cs via Egyptian bank

The National Bank of Egypt (NBE) has signed a US$50 million agreement with the European Bank for Reconstruction and Development (EBRD) aimed at improving letter of credit (L/C) access for small- and medium-enterprises (SMEs).

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Chinese focus L/Cs for preferential loans on iron ore

Chinesesteelmills and traders are using letters of credit (L/Cs) to buy iron ore as a means of obtaining loans at preferential rates.

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Lebanese banks eye L/C opportunities in Cyprus

Traders in Cyprus would welcome letters of credit (L/Cs) provided by Lebanese banks according to media reports.

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Standby L/Cs used to avert default

Standby letters of credit (L/Cs) are being used by Indian banks and companies as a tool to avert default, according the media reports.

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Maybank offers ringgit trade financing in China

Malayan Banking Bhd (Maybank) is offering letters of credit (L/Cs) and other trade financing denominated in ringgit to its customers in China.

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Mongolian banker says reports of L/C default are biased and unproven

Western media have been spreading biased and unproven stories about the failure of one of Mongolia's largest commercial bank's to honour its letter of credit (L/C) obligations, according to its executive director, Ganbold Galsan.

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Bank guarantees and L/Cs feature in UAB online trade portal

Bank guarantees and letters of credit (L/Cs) feature in an online trade portal recently launched by the UAE-based United Arab Bank (UAB).

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Alleged fraudsters promised standby L/Cs for cheap loans

An organised group of fraudsters in India purported to use letters of credit (L/Cs) to obtain preferential-rate loans for potential victims, according to Indian media reports.

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The role L/Cs played in the 2008/2009 trade collapse

Recent research from the Federal Reserve Bank of New York suggests that the letter of credit (L/C) shortage played a substantial role in the 2008/2009 trade collapse.

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More L/Cs needed to boost trade between Pakistan and India

The chief minister in charge of the Indian state which Pakistan claims is illegally occupied by India is calling for more trade between the two countries to improve relations.

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Egyptian steelmakers seek L/Cs to curb Turkish steel imports

Egyptian steel industry representatives are calling for measures that would require importers to open letters of credit (L/Cs) if they want to buy steel from Turkey.

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Pakistan needs faster growth to maintain L/C availability

Letters of credit (L/Cs) may become a scarce commodity unless Pakistan manages to substantially boost its economic growth rate over the next few years, according a paper prepared by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

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Sudan facing increased L/C shortage

Sudan is facing a severe shortage of already hard to obtain letters of credit (L/Cs) according to local media, which is reporting that the shortage may even be exacerbated.

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L/C-backed US municipal bonds fall by nearly one-third

New letters of credit (L/Cs) guaranteeing US bonds fell sharply in 2013, largely as a consequence of stagnation in the variable-rate market for municipal debt.

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New York businessman jailed for L/C fraud

The owner and president of a US company that provided financing to companies buying heavy equipment has been jailed for two years and five months for his part in a US$1.7 million letter of credit (L/C) fraud.

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Algeria softens L/C requirement for importers - corrected.

The Algerian government has apparently conceded that legislation enacted five years ago making it compulsory for importers to buy only on letter of credit (L/C) terms has made conditions too tough for the country's traders.

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Zambia's electricity utility to continue using L/Cs in capital project financing

Zambia Electricity Supply Corporation Limited (ZESCO) is using letters of credit (L/Cs) to support financing to implement capital projects.

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Trade Technologies announces new L/C platform

Trade Technologies has announced the release of the latest version of its patented global trade platform for exporters, trade banks and freight forwarders.

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London's renminbi volumes buoyed by L/C business

Letters of credit (L/Cs) appear to be substantially helping London establish a position as the world's western hub for the Chinese currency.

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Credit Bank of Moscow reports growing L/C and bank guarantee business

Credit Bank of Moscow (CBM) has reported strong growth in its letter of credit (L/C) and bank guarantee business according to the Russian bank's figures for the first nine months of 2013.

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Concerns over troubled Australian giant's L/Cs

Concerns have emerged over two letters of credit (L/Cs) held by troubled Australian insurer, QBE.

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New start's payment system enables importer to bypass L/Cs

A new start trade finance provider says its proprietary online payment system has enabled one of its customer's to bypass letters of credit (L/Cs).

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Second bank official arrested in bogus L/C scam

A director of India's Kapol Cooperative Bank (KCB), Hiren Mehta, accused of helping three businessmen siphon off the equivalent of around US$2.3 million by submitting bogus letters of credit (L/Cs), has been arrested.

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Bangladeshi L/C defaults raise concerns over ratings and confirmation costs

Two of Bangladesh's commercial banks have allegedly defaulted on repayments of foreign loans against letters of credit (L/Cs).

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Chinese currency L/Cs to grow substantially in 2014

Cross-border trade settlements in the Chinese currency are expected to grow by 50 per cent in 2014 to 6 trillion yuan (US$988 billion) in 2014, according to Deutsche Bank.

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Chinese L/C enhanced bonds in jeopardy

Bankers are predicting an end to the use in China of standby letters of credit (L/Cs) provided by highly rated banks to back bond issuances in which the issuer has a much lower rating.

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Euro loses second place to RMB in L/C and collections markets

Recent SWIFT data shows that the Chinese renminbi (RMB) has overtaken the euro as the second most used currency after the US dollar in collections and letter of credit (L/C) transactions.

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Oman plans L/C support to boost exports

Oman's Export Credit Guarantee Agency (ECGA) plans to start providing letter of credit (L/C) guarantees for non-oil exporters looking to sell into risky but lucrative markets.

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First RMB clearing services in the UK may boost L/C growth

Agricultural Bank of China (ABC) and Standard Chartered Bank have said they will become the first banks to offer renminbi (RMB) clearing services in the UK.

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Namibian maize solution can be backed by L/Cs

Letters of credit (L/Cs) can feature in a groundbreaking scheme introduced by the Namibian authorities to encourage millers to build grain silos.

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Indian jewellers call for standby L/C scheme to be restored

The All India Gems and Jewellery Trade Federation (GJF) is calling on the authorities to bring back the stand-by letter of credit (SBLC) scheme and reduce rates of duty on precious metal imports to rescue the country's beleaguered gold industry.

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Pakistan blocks L/Cs for Chinese locomotives

Ministers in Pakistan are blocking letters of credit (L/Cs) due to be opened in favour of a Chinese supplier of 75 railway locomotives ordered in 2005.

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L/C insurance to boost APICORP's trade-finance business growth

The Arab Petroleum Investments Corporation (APICORP), has signed a Documentary Credit Insurance Policy (DCIP) with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank group.

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Nigerian motor dealers allege competitor used L/Cs to avoid duty hike

A group of Nigerian motor dealers is calling for a probe into one of their competitors who they say used letters of credit (L/Cs) to avoid paying recent increases in duty on imported vehicles.

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China may pilot platform to provide lower cost L/Cs

China's central bank is considering establishing a trial trading platform that will make letters of credit (L/Cs) less expensive for some Chinese businesses.

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Iraq to waive India's L/C requirement for crude oil

Baghdad has said that it will waive a requirement for Indian refiners to pay for Iraqi crude oil on letter of credit (L/C) terms.

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EIB to provide L/C support for Cyprus

The European Investment Bank (EIB) has approved a new financing instrument for Cyprus aimed at making letters of credit (L/Cs) and other trade finance instruments better available.

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India asks Kuwait not to use L/Cs in new refinery arrangements

India has asked Kuwait to drop its requirement for buyers in new refinery projects to open letters of credit (L/Cs) to finance crude oil purchases from the Gulf country.

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L/Cs central role in Libyan bread market under threat

Libya's wheat imports are under threat due to current and anticipated problems with the letters of credit (L/Cs) on which the continuity of the country's bread supplies depend.

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National Bank of Fujairah eyes African L/C business

National Bank of Fujairah (NBF) is eyeing the possibility of opening trade finance offices in Africa as part of an overseas expansion plan for the bank based in one of the UAE's smaller emirates.

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L/Cs for US variable-rate municipal bonds under threat

The use of letters of credit (L/Cs) to back US variable-rate municipal bonds is in doubt under a Federal Reserve proposal to exclude such debt from a list of easily sold assets.

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Nepal and China order L/Cs to curb gold smuggling

Gold traders in Nepal and China will have to use letters of credit (L/Cs) to finance cross-border trades under a new bilateral agreement between the two countries.

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Concerns expressed over standby L/Cs in Chinese bond offerings

Investors are expressing concerns over the use of standby letters of credit (L/Cs) to guarantee Chinese bond offerings.

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Anti-money laundering watchdog puts Guyana's L/C flow under threat

The availability of letters of credit (L/Cs) is under threat in Guyana, which has been ordered to pass amendments to anti-money laundering legislation by 13 November 2013.

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Hong Kong businesswoman admits L/C frauds

A Hong Kong businesswoman has admitted several charges of fraud using a fraudulent letter of credit (L/C).

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HSBC Bank Armenia issues L/Cs worth US$17 million in six months for equipment purchases

HSBC Bank Armenia has issued 6.9 billion drams (AMD6.9 billion -- US$17 million) worth of letters of credit (L/Cs) since April 2013 as part of its campaign to finance equipment purchases.

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Egyptian wheat buyer reports no problems obtaining L/Cs

Egypt's main state-owned wheat-purchaser says it is experiencing no problems obtaining letters of credit (L/Cs) for global wheat purchases.

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India employs L/Cs to forge western African links

India is extending letters of credit (L/Cs) to western Africa's regional development bank as it seeks to deepen its engagement with the region.

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Citi Peru issues first renminbi L/Cs in Latin America

Citi Peru has become the first bank in in Latin America to issue letters of credit (L/Cs) in the Chinese currency.

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L/Cs for affordable housing and community development

A US bank is featuring letters of credit (L/Cs) in a package that includes a five-year commitment to provide US$1 billion in funding for affordable housing and community development projects across its 12-state footprint.

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Lloyds and Standard Chartered announce UK-Asia strategic partnership

Lloyds of the UK has announced a strategic partnership with Standard Chartered in Asia to help it support corporate clients who import from the region.

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L/C fraud case in Hong Kong delayed by Department of Justice row

Hong Kong's Court of Appeal has ruled that a row inside the Department of Justice caused a senior public prosecutor to delete documents relevant to a long running letter of credit (L/C) fraud and money laundering case.

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L/C flows stalling in parts of the Middle East

Letter of credit ((L/C) flows in the Middle East may be slowing up in places according to data seen on SWIFT, the financial messaging network that facilitates transfers for financial institutions and corporates.

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Iraq makes L/Cs available for foreign contractors

Iraq is making letters of credit (L/Cs) available to foreign contractors that have so far been reluctant to participate in dozens of planned water and sewerage projects worth billions of US dollars.

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India orders compulsory hedging for import L/Cs

India's finance ministry has asked state-run banks to make hedging compulsory for all importers seeking foreign letters of credit (L/Cs) for their purchases.

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Kvaerner and Foster Wheeler sue coal plant operator to block L/C drawings

The US Subsidiaries of Norwegian construction company, Kvaerner, and German engineering firm, Foster Wheeler, are suing Longview Power to stop the beleaguered coal plant operator from drawing on US$59 million in disputed letters of credit (L/Cs).

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National Bank of Fujairah agrees Hong Kong subsidiary with Wells Fargo

Customers of National Bank of Fujairah (NBF) importing from Asia look set to benefit from a new agreement reached by the bank and trade specialist Wells Fargo.

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Dubai Islamic Bank leverages Deutsche Bank's L/C experience

Deutsche Bank and Dubai Islamic Bank (DIB) have announced the signing of a memorandum of understanding (MoU) that will allow the UAE-based bank to leverage the German bank's experience in writing letter of credit (L/C) business.

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Falcon Group benefits from bank retrenchment from trade finance

Falcon Group, which offers non-bank alternative trade finance solutions and specialises in providing conventional instruments such as letters of credit (L/Cs), appears to be doing very well according to its recently released financial results.

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Nepalese banks issuing fewer L/Cs as currency slides

Nepalese banks are issuing fewer import letters of credit (L/Cs) as the strengthening US dollar prompts importers to scale down their purchasing plans.

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Suisse Bank enters into bank guarantee and L/C arrangement with ING

Trade finance specialist, Suisse Bank, has entered into what it describes as a landmark EUR 5million trade finance agreement with ING of the Netherlands.

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US bankruptcy court refuses coal operator's request to draw on disputed L/Cs

A US bankruptcy court has ruled that coal plant operator Longview Power cannot draw on US$59 million in disputed letters of credit (L/Cs) without further permission from the court.

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Sri Lanka imposes L/C cash margin to deter car imports

Sri Lanka has imposed a 100 per cent cash margin on letters of credit (L/Cs) opened for car imports.

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India seeks release from L/C terms for Iraqi oil imports

India is looking for a long-term deal to secure imported oil from Iraq but, as part of the deal, it wants to be released from the letter of credit (L/C) terms the two countries currently use.

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Oman recommends L/Cs, not credit insurance for exports to Egypt

Oman's Export Credit Guarantee Agency (ECGA) is recommending that exporters trade on letter of credit (L/C) terms when exporting to Egypt.

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Sberbank reports domestic L/C driven trade finance growth

Russia's Sberbank has reported a surge in the volume of trade finance business written by the bank.

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HSBC Malta launches Instant@dvice

HSBC Malta Commercial Banking has launched Instant@dvice, an online trade andreceivables finance service.

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Analysis of L/C flows add to good news for Bangladeshi economy

A sharp increase in the value of letters of credit (L/Cs) opened for imports of capital equipment and a decrease in L/C openings for most food imports appear to signal improved economic prospects for Bangladesh.

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Libya withdraws offer to provide Egypt with L/C-free fuel

Libya has withdrawn its offer to provide Egypt with fuel on an open account basis.

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Two Iranian MPs acquitted of charges in huge L/C fraud

Two MPs accused of involvement in Iran's US$2.8-billion letter of credit (L/C)fraud have been acquitted of the charges against them, according to Tehran's prosecutor general.

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Euler Hermes insurance targets Asian L/C markets

Euler Hermes says it has recently launched trade credit insurance solutions for HSBC Commercial Banking customers in Singapore and intends to target an Asian market hitherto reliant on letters of credit (L/C) to secure trade finance transactions.

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EIB helps SMEs mitigate European L/C shortage

The European Investment Bank (EIB) is introducing new trade finance instruments to help small- and medium-sized enterprises (SMEs) to continue trading despite a shortage of letters of credit (L/Cs).

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US businessman pleads guilty of fraudulently obtaining L/Cs

A Madison man has pleaded guilty to bank fraud in a scheme to fraudulently obtain letters of credit (L/Cs) that cheated financial institutions out of more than a million US dollars.

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SNC fights attempts to draw on L/Cs in respect of Libyan work

SNC-Lavalin Group (SNC) is fighting attempts by a third party to draw on letters of credit (L/Cs) put up by Canada's largest engineering company to guarantee work it was carrying out in Libya.

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Moody's releases frequently asked questions on bonds backed by standby L/Cs

Moody's Investors Service has released a report entitled Frequently Asked Questions on Rating Bonds Backed by Bank-Issued Standby Letters of Credit.

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US banks see L/C opportunities in growing export markets

Banks in the US are focusing increasingly on increased demand for trade finance as middle-market companies see limited opportunities to grow domestic sales and focus on fast growing export markets.

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Kenya's Equity Bank targets Chinese L/C customers

Kenya's Equity Bank is targeting Chinese customers in its bid to increase the amount of letter of credit (L/C) and other trade finance business it writes.

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Indian intelligence agencies vigilant over L/Cs used in mispricing scams

India's intelligence agencies are taking a close interest in letters of credit (L/Cs) as concerns increase over the practice of traders grossly mispricing goods so they can keep US dollars overseas and benefit from the depreciating rupee.

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India lifts restrictions on L/Cs for gold imports

India has lifted letter of credit (L/C) restrictions on gold imports in favour of tougher measures to control flows of imports and exports of the precious metal.

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Problems may be ahead for Sri Lankan importers using US dollar denominated L/Cs

A Sri Lankan rupee falling sharply against the US dollar may cause problems for importers using letters of credit (L/Cs) and fuel inflation as well, according to one of the country's leading business figures.

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Banco Latinoamericano de Comercio Exterior reports growth in L/C earnings

Banco Latinoamericano de Comercio Exterior (BLCE - Foreign Trade Bank of Latin America) has reported second quarter net income down to US$21.7 million in 2013 from US$23.2 million in the second quarter 2012.

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Report highlight's Iraqi banks' L/C earnings

A new report on Iraq's banking sector released by Sansar Capital Management has highlighted the earnings potential for the country's banks writing letter of credit (L/C) business.

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Kenya's tea exports hit by Egyptian L/C shortage

Kenya's tea exports have been severely hit by the shortage of letters of credit (L/Cs) in Egypt.

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US municipal bond market turns its back on L/Cs

The use of letters of credit (L/Cs) in the US municipal bond market is ebbing during 2013 according to Thomson Reuters data released in July.

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City of Ottawa anticipates more L/Cs for transit system's pension fund

The City of Ottawa is anticipating issuing more letters of credit (L/Cs) to cover a deficit in the pension fund of the urban transit service in the Canadian capital city.

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Venezuela ends L/C requirement for foreign exchange auctions

Letters of credit (L/Cs) will no longer need to be put up by participants in Venezuela's redesigned auction-based currency exchange system.

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Tennessee planning authority replaces L/Cs with performance bonds

Cocke County Regional Planning Commission (RPC) has decided to stop asking developers to put up letters of credit (L/Cs) to guarantee that they comply with construction obligations.

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Saudi Arabia's new weekend will improve L/C operations

Saudi Arabia's switch of weekend days to Friday and Saturday from Thursday and Friday will improve the Kingdom's letter of credit (L/C) and other trade finance operations according financial analysts.

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Suisse Bank reports high sales growth of L/Cs and bank guarantees

Suisse Bank says it is seeing a reinvigorated trade finance market as volatile economic conditions continue to push borrowers back to traditional trade products.

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Frustration in UAE over HSBC cut backs

Small- and medium-sized enterprises (SMEs) in the UAE have expressed concerns to local media over plans by HSBC to cut back its banking services.

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Iraq to sell crude on L/C terms to Egypt and Sudan

Iraq has agreed to provide both Egypt and Sudan with crude oil to be purchased on letter of credit (L/C) terms, according to Egyptian state media reports.

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US$1 billion L/C facility for Egyptian General Petroleum Corporation

The National Bank of Egypt (NBE) has agreed to grant the Egyptian General Petroleum Corporation (EGPC) letters of credit (L/Cs) to the value of US$1 billion.

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Standby L/C in unusual acquisition loan for Chinese buyer

A standby letter of credit (L/C) facility is backing a loan for Chinese pork producer Shuanghui International's bid for US-based Smithfields Foods.

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Hidden L/Cs behind China's mounting debts

Hidden letters of credit (L/Cs) may be contributing to what some analysts say is a looming debt crisis for China as borrowings soar at an alarming rate.

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Canadian city to ease L/C terms for developers

The Canadian city of Airdrie is set to soften the terms of letters of credit (L/Cs) it currently insists on from developers to ensure they undertake development obligations in respect to landscaping and site improvements to meet city standards.

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Credit Bank of Moscow reports strong bank guarantee and L/C growth

Credit Bank of Moscow (CBM) has reported strong first quarter growth in the amount of letter of credit (L/C) and bank guarantee business it has written.

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New ISO 20022 message definitions to support demand guarantees and standby L/Cs

New standardised international messages have been approved under the ISO standards for financial services messaging, providing SWIFT the green light to use 20 new message definitions to support demand guarantees and standby letters of credit (L/Cs).

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India's YES Bank joins Global Trade Finance Programme

Privately owned YES Bank of India has signed an agreement to participate in the International Finance Corporation's (IFC's) Global Trade Finance Programme (GTFP).

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Central Bank of Iraq employs L/Cs to stem currency declines

The Central Bank of Iraq (CBI) is opening letters of credit (L/Cs) with Iraqi banks as part of its efforts to stem the decline of the Iraqi currency against the US dollar.

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Chinese banks stop L/Cs for copper imports

A handful of Chinese banks have stopped issuing letters of credit (L/Cs) for copper imports, according to Shanghai's National Business Daily.

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Trade Bank of Iraq to expand into Lebanon and Turkey

Trade Bank of Iraq (TBI) plans to open branches in Lebanon and Turkey to tap into growing volumes of trade between Iraq and those two countries.

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Missouri banker jailed for L/C fraud

A former banker in the US state of Missouri has been sentenced to 57 months in prison for crimes involving the issuance of fraudulent letters of credit (L/Cs).

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Saudi bank reports growing L/C business

National Commercial Bank (NCB) of Saudi Arabia has reported growth in its letter of credit (L/C) business, despite more moderate Saudi imports in February following a surge that peaked in July last year.

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Improved access to L/Cs and bank guarantees in Armenia

Ameriabank has become the first Armenian bank to become a confirming bank in the European Bank for Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP).

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Barclays reports MENA region L/C growth

Barclays says it is experiencing a growing number of requests for letters of credit (L/Cs) in the Middle East and North Africa (MENA) region.

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L/Cs to provide financial discipline in Pakistan Steel Mills bailout

Pakistan's government has arranged an 11 billion rupee (US$200 million - Rs11 billion) bailout for Pakistan Steel Mills (PSM).

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Indian banks get set to seize L/C opportunities in China

Two out of India's three largest banks look set to open up branches in China in a clear indication of closer financial and trade links between Asia's two fast-growing giant economies.

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Bank downgrades to add to Egypt's L/C woes

Egypt's banks have already reported problems doing letter of credit (L/C) business as a result of repeated sovereign credit downgrades since the February 2011 Egyptian Revolution.

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Citi developing OCR for L/C checking

Citi is developing Optical Character Recognition (OCR) technology so that letters of credit (L/Cs) and other trade documents can be processed more quickly and accurately.

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Pakistan to check L/Cs and guarantees to track CNG imports

A check on letters of credit (L/Cs) and bank guarantees may help the authorities in Pakistan clamp down on suspected illegal imports of compressed natural gas (CNG) and associated equipment.

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L/C delays hamper Malawi's drugs programme

Zambian officials appear unfamiliar with the workings of letters of credit (L/Cs) as fuel trucks remain unable to offload fuel at the country's Tazama pipeline terminal.

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L/C delays hamper Malawi's drugs programme

A Malawian official has said that delays in making letter of credit (L/C) arrangements have contributed to the failure of a controversial emergency drug procurement tender.

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Egypt's deal with Libya avoids costly L/C deals

Egypt is to import fuel from Libya without having to resort to hugely expensive letters of credit (L/Cs).

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Bank guarantee and L/Cs increase at Ghana's UT Bank

Ghana's UT Bank has reported substantial increases in bank guarantee and letter of credit (L/C) business.

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Fuel trucks stranded as Zambia fails to put up L/Cs

Some 400 tankers carrying fuel from East Africa are reportedly parked up at the head of the Tazama Oil Pipe Line (TOPL) at Zambia's commercial capital city of Ndola.

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UK chamber of commerce launches SME-targeted L/C support

A UK-based regional chamber of commerce has launched a service to produce documents required for export letters of credit (L/Cs) as well as other documents required by exporters.

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Bangladesh calls for abolition of L/C tax

Business leaders in Bangladesh are calling for an abolition of tax charges on letter of credit (L/C) openings as part of their campaign to encourage entrepreneurs to set up businesses and create jobs.

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L/Cs to be used in Pakistan's CNG probe

Letters of credit (L/Cs) are to be examined by the Pakistani authorities as they investigate suspected irregular compressed natural gas (CNG) imports.

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Costly L/Cs add to Egyptian textile producers' woes

Expensive letters of credit (L/Cs) are amongst a slew of higher costs Egypt's textile manufacturers are coping with as they strive to stay competitive in the post-Mubarak era.

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Foreign exchange system creating L/C shortage in Venezuela

Venezuelan importers requiring letters of credit (L/Cs) are driving demand for US dollars in the country.

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Doubts over L/C-enhanced bonds

Suzlon, the troubled Indian wind-turbine maker has completed India's first letter of credit (L/C) enhanced overseas bond.

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Cypriot L/C concerns

Banks in Cyprus have reopened for business, but it appears that suppliers are reluctant to accept letters of credit (L/Cs) from the country's banks.

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Saudi Arabia's slight L/C decline masks big changes

Saudi Arabia has reported a decline in import letters of credit (L/Cs) opened in January 2013 compared with the same month last year.

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Iran eyes US wheat despite L/C shortage

Iran is looking to buy US wheat despite the financial sanctions that mean Iranian buyers cannot use letters of credit (L/Cs) to finance transactions.

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National Bank of Fujairah to gain Hong Kong foothold

National Bank of Fujairah (NBF) has announced the signing of a memorandum of understanding (MoU) with Wells Fargo Bank that would see NBF gaining a foothold in Hong Kong.

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Advice on credit enhanced bonds

Investors in credit enhanced bonds backed by standby letters of credit (L/Cs) may want to take the advice of a senior analyst at Moody's Investors Service who has recently expressed concerns about other types of credit enhanced bonds.

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Missouri bank manager indicted on bank fraud and embezzlement charges

A Missouri bank manager has been indicted on charges related to the issuance of fraudulent letters of credit (L/Cs) while he was vice president and manager of the Ellington branch of People's Community State Bank (PCSB).

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Indian wind turbine maker to restructure debt backed by standby L/Cs

India's Suzlon Energy is looking to use letters of credit (L/Cs) to back a credit enhanced bond as the heavily indebted wind turbine manufacturer seeks to refinance a US$658 million loan that matures later this month.

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London reports growing renminbi L/C business

Renminbi (RMB) letters of credit (L/Cs) are becoming an increasingly common sight in London as the UK capital seeks to establish itself as a leading offshore centre for the Chinese currency.

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L/C charges compound problems for Sri Lankan oil and gas company

Charges for letters of credit (L/Cs) are aggravating the already dire cash position of Sri Lanka's state-owned oil and gas company.

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Jail and fine for UAE L/C fraudster

A former director and partner in a contracting company operating in the UAE has been sentenced, in absentia, to three years in jail for defrauding a public company and dishonouring an agreement with it.

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Egyptian banks hoard currency for L/C obligations

Egyptian banks hoarding foreign currency to meet their letter of credit (L/C) obligations appear to be contributing to Egypt's currency crisis, which once more features sharp rises in the US dollar against the Egyptian pound (EGP).

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Bankers row as Ethiopia faces increasing L/C shortage

Ethiopian media is reporting a feud between bankers as the country's industrialists face an increasing letter of credit (L/C) shortage.

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India limits L/C tenors for valuable commodities

The Reserve Bank of India (RBI) has imposed a tougher limit on letter of credit (L/C) tenors for imports of precious and semi-precious stones.

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More IDB L/Cs for Bangladesh Petroleum Corporation

The lending arm of the Islamic Development Bank (IDB) has reportedly provided another letter of credit (L/C) facility to Bangladesh Petroleum Corporation (BPC) to help it finance oil imports.

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US wind power projects harness L/Cs for financing

Letters of credit (L/Cs) feature in the financing of one of the largest wind farms in the world, which became operational in the US late last year.

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Bangladesh launches nationwide online L/C monitoring

Bangladesh Bank (BB) is introducing a new system for monitoring letters of credit (L/Cs) as well as other international transactions.

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More bank guarantees and L/Cs as India and Russia strengthen banking links

Bank guarantees and letters of credit (L/Cs) are becoming more available for transactions between India and Russia as the two countries strengthen their banking ties to bolster bilateral trade.

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EU court rules against banking sanctions imposed on Iran

The EU's General Court has issued judgments that could sound the beginning of a restoration of letter of credit (L/C) business between Europe and Iran.

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No L/C call in US gun control drive

Chicago's mayor has called on a US bank to withdraw a letter of credit (L/C) facility extended to one of the country's largest gunmakers.

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India and Iran seek L/C alternatives for tea trades

The Iran Tea Association (ITA) and the Tea Board of India (TBI) are examining ways to facilitate exports of Indian tea to Iran.

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Foiled L/C forgeries may indicate fraud ring

A bank manager at India's Allahabad Bank has foiled an attempted letter of credit (L/C) forgery.

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China leaves L/Cs out of shadow banking measures

Letters of credit (L/Cs) have not been included in China'supgraded tool for monitoring economy-wide financing flows.

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Belarus amends L/C and bank guarantee legislation

Belarus has passed a new law amending its legislation in respect of letters of credit (L/Cs) and bank guarantees.

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Contractor in UAE forged L/Cs in construction scam

A former director and partner of a contracting company has been accused of fraudulently obtaining 8.5 million UAE dirham (AED8.5 million - US$2.3 million) from the UAE's official postal service.

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New L/C and bank guarantee fees from Sweden's stock exchange

The owner and operator of Sweden's stock exchange has said that from 1 February 2013, it will be charging a fee for administering letters of credit (L/Cs) and bank guarantees.

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Qatar Islamic Bank offers discounted L/Cs for SMEs

Letters of credit (L/Cs) at preferential rates feature in a new programme aimed at Qatar's small- and medium-sized enterprises (SMEs).

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Sharp fall in L/Cs for US municipal bond market

Issuers of US municipal bonds used half the value of letters of credit (L/Cs) in 2012 compared with 2011, according to recently released data from Thomson Reuters.

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Pakistan and Iran enter barter trade agreement

Pakistan Steel Mills (PSM) and the Government Trading Corporation (GTC) of Iran have agreed in principle to a barter trade arrangement.

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New BEA outlets for bank guarantees and L/Cs on mainland China

Bank of East Asia (BEA) has announced that a wholly owned subsidiary has opened four new outlets providing bank guarantees and letters of credit (L/Cs) as well as other trade finance and banking services on the Chinese mainland.

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Sanctions severely impact on Dubai-Iran trade

International sanctions imposed on Iran, mainly on account of its nuclear ambitions, are now having a very severe impact on Dubai's export and re-export markets.

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Scope for L/C growth in the Gulf

Recent reports point to relatively low levels of lending to small- and medium-sized enterprises (SMEs) in the UAE and the wider Gulf Cooperation Council (GCC).

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Iraqi moves to make L/Cs more available

The Central Bank of Iraq (CBI) is moving to make letters of credit (L/Cs) more available to commercial banks and improve access to foreign exchange.

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L/C availability set to improve in Comoros

One of Tanzania's largest commercial banks is looking to improve letter of credit (L/C) availability in Comoros.

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Coordination needed to cut down on under-invoicing scams

Pakistan's Federal Board of Revenue (FBR) has asked the State Bank of Pakistan (SBP) to share online data about letters of credit (L/Cs) with the customs authorities.

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Guilty pleas from L/C fraudsters in vehicles for Iraq contract

A British contractor will plead guilty to conspiracy to defraud the US, the government of Iraq, JP Morgan Chase Bank and the Coalition Provisional Authority that governed Iraq from April 2003 to June 2004.

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Defendants demand stay of proceedings in L/C misuse case

Three defendants accused in Hong Kong of misuse of letters of credit (L/Cs), have asked the High Court to grant a permanent stay of proceedings.

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TradeCard customer extends usage to Europe

TradeCard, the online platform that claims to provide an alternative to letters of credit (L/Cs), has signed a new agreement with major US-based global fashion retailer and distributor.

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Ontario announces new regulation for L/Cs used in pension plan funding

The Canadian province of Ontario has published a new letter of credit (L/C) regulation under its Pension Benefits Act (PBA).

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Wells Fargo awarded for L/C alternative for insurance industry

A Wells Fargo & Company subsidiary has won an award from an insurance magazine for its provision of letter of credit (L/C) alternatives that meet insurance and surety-related collateral requirements.

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Fuel shortages in Malawi prompt L/C concerns

Malawi's finance minister, Ken Lipenga, has said the country will continue to face erratic fuel supplies because of shortages of foreign currency and international suppliers' lack of faith in Malawi's economy.

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Lloyds is satisfied with L/C and bank guarantee usage by insurers and reinsurers

Lloyd's finance director Luke Savage has said he is 'absolutely' comfortable with the market sourcing around half of its funding from letters of credit (L/Cs).

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Tanzanian oil marketing companies advised to open timely L/Cs

Oil marketing companies (OMCs) in Tanzania have been advised to open letters of credit (L/Cs) on time to allow for the timely discharge of oil products at a newly commissioned port facility.

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ANZ adopts Bolero

By Mark Ford

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Chinese L/C availability improving

Letter of credit (L/C) availability in China appears to be improving as foreign banks move in to take advantage of foreign currency financing opportunities.

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Alternative settlement instrument sits between L/Cs and open account

A leading banker has told a specialist Asian financial sector magazine that an alternative instrument for trade settlement is set to sit alongside traditional modes of settling transactions, including letters of credit (L/C) and open account.

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Bangladeshi businessman denies involvement in L/C scam

Bangladesh's Anti-Corruption Commission (ACC) has accused the chief executive officer (CEO) of a textile printing company with embezzlement of the equivalent of nearly US$9 million using inland letters of credit (L/Cs).

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Iran still trading on L/C terms

Iran's semi-official Fars News Agency (FNA) reported that the sanctions imposed by several nations aim to make it very difficult for banks worldwide to participate in L/C transactions with Iran.

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Report says HSBC refuses to issue advice on Sonali Bank foreign L/Cs

HSBC in Bangladesh has declined to issue advice on two foreign L/Cs (letters of credit) issued by the state-run Sonali Bank Limited (SBL), according to local media.

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CFTC wins right to intervene in L/C dispute between MF Global's trustee and ConocoPhillips

The US Commodity Futures Trading Commission (CFTC) has won court approval to intervene in the US$205 million dispute between oil major ConocoPhillips and the bankruptcy trustee for the collapsed commodity broker, MF Global Inc.

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Massachusetts man jailed for L/C-based wire fraud

A Massachusetts man has been sentenced to a jail term of more than seven years for his part in a US$7 million wire fraud that promised investors lucrative letters of credit (L/Cs) through European banks and lenders.

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General Electric and Deutsche Bank incorporate L/Cs in innovative solutions for complex projects

General Electric (GE) and Deutsche Bank are incorporating letters of credit (L/Cs) in a collaboration that aims to deliver innovative risk and working capital solutions for large-scale projects.

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Trade Bank of Iraq denies receiving L/Cs from Syria

The Trade Bank of Iraq (TBI) has issued a statement denying a report in a British newspaper that it had received cash or letters of credit (L/Cs) from Syria for fuel supplies from Iraq.

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National Bank of Fujairah eyes Hong Kong trade finance opportunities

National Bank of Fujairah (NBF) has signed a Memorandum of Understanding (MoU) with Wells Fargo Bank with a view to the UAE-based bank establishing services in Hong Kong.

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ConocoPhillips and liquidator to settle L/C dispute in court

Oil major ConocoPhillips and James Giddens, the liquidator of commodity broker MF Global Inc, look set to resolve a dispute over letter of credit (L/C) proceeds in court.

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BNP Paribas to provide L/C services for US exports to Vietnam

BNP Paribas is to provide letter of credit (L/C) services in support of a major order from Vietnam for US-made telecommunications equipment.

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Lack of L/C finance stalls Pakistani hydropower project

Project developers say the reluctance of foreign backers to release funds for a major power scheme in Pakistan is preventing them securing the letter of credit (L/C) financing they need to complete the project.

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L/C values fall as Bangladesh stems luxury imports

Falling letter of credit (L/C) settlements and openings have been recorded in Bangladesh, suggesting that central bank measures to curb spending on imported luxury goods are working.

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Chinese coal imports subdued by banks' L/C refusals

Chinese banks are refusing to issue letters of credit (L/Cs) for coal imports, as they put pressure on China's traders.

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Government bailout releases L/Cs for Pakistan Steel Mills

State-owned Pakistan Steel Mills (PSM) has been able to open two letters of credit (L/Cs) for the purchase of 0.11 million metric tons of coal.

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Missouri bank manager accused of L/C fraud

A former bank manager in the US state of Missouri has been indicted on charges of bank fraud and embezzlement.

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New L/C source for UK exporters

Exporters in the UK are expected to benefit from letters of credit (L/Cs) backed by a UK government department and made available through privately owned trade finance provider, Synergy in Trade.

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Several types of L/Cs contemplated in Pakistani LNG import financing

Pakistan's Economic Coordination Committee (ECC) is expecting to use a letter of credit (L/C)-based financing mechanism in a plan to import one billion cubic feet per day of liquefied natural gas (LNG).

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South Sudan secures currency saving L/Cs from Qatar

The recently formed independent state of Southern Sudan has secured a US$100 million deal from Qatar National Bank (QNB) to be used to issue letters of credit (L/Cs) for imports of essential goods.

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Ghana bans Access Bank from L/C business

Ghana's central bank has banned Access Bank from engaging in new foreign exchange business, including letter of credit (L/C) services.

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Pakistan seeks dishonoured L/C payments from Russian bank

Pakistan's government has reportedly made efforts to recover millions of US dollars allegedly owed to Pakistani exporters by EEFC Bank of Saint Petersburg.

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Citigroup introduces Yuan-denominated L/Cs for Latin America

Citigroup has introduced Yuan-denominated letters of credit (L/Cs) for importers and exporters in Latin America.

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Egyptian fuel importers hit by L/C problems

Egyptian importers are finding it increasingly difficult to raise letters of credit (L/Cs) for fuel imports.

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Saudi Arabia reports 24 per cent L/C surge

The value of letters of credit (L/Cs) issued by banks in Saudi Arabia surged 24 per cent in the first six months of 2012 compared with the first half of 2011.

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Zambian bank rolls L/Cs and bank guarantees out to rural areas

The recently established First National Bank (FNB) Zambia is to make letters of credit (L/Cs) more available as it expands its branch network across the country.

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Indian operations of UBS to push L/C and corporate business

The Indian operations of Switzerland's UBS banking and financial services group are to focus on letters of credit (L/C) and other corporate banking services.

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Commissions from L/Cs help Bangladeshi banks to profits

Commissions from letters of credit (L/Cs) have helped nearly half of Bangladesh's commercial banks to improve profitability in the first half of this year.

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Central Bank of Iraq to insist on bank guarantees or L/Cs for international trade

The Central Bank of Iraq (CBI) is reportedly drafting new payment terms under which Iraq's international traders will be required to do business on bank guarantee or letter of credit (L/C) terms.

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India says common system will reduce L/C and bank guarantee fraud

India's finance ministry has issued a directive asking public sector banks (PSBs) to adopt a common messaging system for communicating trade finance messages.

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Bank openings to boost L/C and bank guarantees for Indo-Pakistani trades

Indian banks are opening branches in Pakistan and vice versa as financial institutions seek to capitalise on the two countries' recent trade pact.

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Bangladesh's state-owned commercial banks hike commissions on L/Cs for oil imports

Bangladesh's state-owned commercial banks (SCBs) have unilaterally raised the rate of commission charged for opening letters of credit (L/Cs) for oil imports by Bangladesh Petroleum Corporation (BPC) according to its chairman, Abubakar Siddique.

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Vietnamese insurers not replacing many L/Cs with credit insurance

Two years ago, the Vietnamese government introduced a scheme to promote export credit insurance as a viable alternative to letters of credit (L/Cs) to ensure that exporters are paid.

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Private banks in Myanmar begin L/C services

Private banks in Myanmar have begun to offer letters of credit (L/Cs) as the country takes its position in the global trading community after years of exclusion.

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Indonesian lawmaker acquitted of L/C fraud

The Indonesian Supreme Court has acquitted former lawmaker Muhammad Misbakhun of letter of credit (L/C) forgery charges.

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Somaliland poised to open for L/C business

Letters of credit (L/Cs) may soon be available in the unrecognised East African state of Somaliland.

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DS-Concept's new deal for assigned L/C proceeds in Bangladesh

DS-Concept says it has recently completed its first advance payment for assigned letter of credit (L/C) proceeds in Bangladesh.

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State Bank of India reports L/C fraudster

The State Bank of India (SBI) has notified the police of a man who the bank says forged a letter of credit (L/C) to obtain around US$350,000.

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China to curb L/Cs on more commodities

The Chinese authorities are clamping down on letters of credit (L/Cs) used for commodity trades.

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Russia reportedly mulling L/C transactions with Iran

A semi-official Iranian news agency has reported that Russia is contemplating breaking ranks with western countries by reintroducing letter of credit (L/C) transactions with Iran.

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Zambia to create L/C-only export legislation

Zambia is to issue a statutory instrument (SI) that will require exporters to sell goods on letter of credit (L/C) terms.

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Iranian L/C fraud trial draws to an end

The trial in Iran of dozens of people over the alleged multi-billion US dollar financial scandal in which letters of credit (L/Cs) played a big role is drawing to a close.

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CIMB group awarded for L/C and bank guarantee offerings

Kuala Lumpur based CIMB Group has won three awards from Trade Finance Magazine for its efforts in transforming its ASEAN regional trade finance business.

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L/C irregularities unearthed at Rupali Bank

Bangladesh's central bank is investigating irregularities its inspectors have unearthed at a branch of the largely state-owned Rupali Bank.

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Moody's quandary over L/C-backed US municipal bonds

Moody's Investor Service appears to be in a quandary as to how to rate letter of credit (L/C)-backed US municipal bonds.

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Massachusetts man pleads guilty to L/C based investment fraud

A man from Massachusetts has pleaded guilty to an investment fraud that falsely promised victims huge returns from letters of credit (L/Cs).

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Indian L/C fraud sparks international investigation

India's Central Bureau of Investigation (CBI) has arrested two men who allegedly siphoned off the equivalent of around US$14 million from Bank of India (BOI) using forged letters of credit (L/Cs) in 2011.

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Sanctions clauses impact on L/Cs

Sanctions imposed on countries worldwide, particularly in the Middle East, are causing new clauses to be written into letter of credit (L/C) documents according to a lawyer who specialises in issues concerning sanctions.

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China mulls more L/C controls

China is reportedly mulling further controls over letters of credit (L/Cs), which the authorities reckon remain a cause of volatility in commodity markets.

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Wells Fargo buys WestLB's subscription finance portfolio

Wells Fargo says it has agreed to buy WestLB's subscription finance portfolio, which provides letters of credit (L/Cs) and other facilities to specialist investment funds.

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Moody's cuts US municipal bonds ratings backed by downgraded L/C providers

Moody's Investors Service has cut ratings on US$64 billion of US municipal bonds that rely on letters of credit (L/Cs) and other instruments issued by institutions the ratings agency has recently downgraded.

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BelVEB Bank of Belarus signs up for EBRD's Trade Facilitation Programme

Belvnesheconombank (BelVEB Bank) of Belarus has become one the latest confirming banks in the European Bank for Reconstruction and Development Bank's (EBRD's) Trade Facilitation Programme (TFP).

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Taiwan licenses banks from mainland China

Taiwan's banking regulator has issued licenses to two mainland Chinese banks that will provide letter of credit (L/Cs) and other banking services on the island.

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Bangladash to probe L/C over-invoicing

The central bank of Bangladesh has decided to investigate two alleged over-invoicing scams.

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Central Bank of Moscow reports surge in L/Cs and bank guarantees

One of Russia's largest banks has reported a surge in letter of credit (L/C) and bank guarantee business in the first quarter of this year.

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Curious drivers of growth of Renminbi L/Cs

Recent data from global payments network Swift showed that the Chinese renminbi (RMB) has overtaken the Japanese yen to become the third biggest currency in the global issuance of letters of credit (L/Cs) by value.

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Philippines approves anti-money laundering measures to maintain L/C flows

The Senate in the Philippines has given its final approval to two key amendments to the country's Anti-Money Laundering Act (AMLA)

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Swift reports surge in Renminbi L/Cs

Swift has released figures showing that the third biggest currency in the global issuance of letters of credit (L/Cs) by value is now the renminbi (RMB).

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Saudi Arabia posts strong L/C and bank guarantee growth

Saudi Arabia's booming economy is driving substantial growth in the Kingdom's letter of credit (L/C) and bank guarantee markets.

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Citi launches Renminbi services in Latin America

Citi has launched Renminbi (RMB) letter of credit (L/C) facilities for Latin American-based importers and exporters.

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IFC's growing L/C business

The global financial crisis has prompted the International Finance Corporation (IFC) to step up its letter of credit (L/C) offerings according to its chief executive.

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L/C shortage blocks Egyptian fuel imports

Difficulties obtaining letters of credit (L/Cs) has caused delays to current shipments of fuel into Egypt.

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Poor uptake for Britain's L/C export scheme

Just five firms have used a scheme designed to increase letter of credit (L/C)-backed British exports, according to reports in the UK media.

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First Renminbi transaction in Malta for HSBC

A subsidiary of HSBC has claimed to be the first bank in Malta to have completed a direct trade settlement in Chinese Renminbi (RMB).

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Wells Fargo L/Cs go mobile

Wells Fargo & Company has announced that users of its online trade portal will now be able to access information on letters of credit (L/Cs) using their mobile phones.

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Shortage of L/Cs contributes to sugar smuggling into Syria

A shortage of letters of credit (L/Cs) is contributing to burgeoning levels of sugar smuggling into Syria.

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Jail term for L/C fraudster

A fraudster has been sentenced to 70 months in prison for conspiring to solicit victims to invest millions of US dollars based on his false promises.

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Wells Fargo introduces L/C alternative for UK corporate insurance programmes

Wells Fargo & Company (WFC) has announced the introduction in the UK of an insurance trust currently used by corporate insurance programmes that provides an alternative to letters of credit (L/Cs).

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Bangladesh Bank encourages reasonably priced L/Cs for Ramadan

The central bank of Bangladesh has asked the country's commercial banks to encourage importers to open fresh letters of credit (L/Cs) for five essential foodstuffs to ensure smooth supply of those items during the holy month of Ramadan.

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Kuwait Finance House targets L/C and bank guarantee business

Kuwait Finance House (KFH) has reported a sharp increase in the volume of its letter of credit (L/C) business in the first quarter of this year compared with the same period last year.

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New L/C fraud revealed in Iran

More than a dozen people have been arrested following the discovery of a new suspected letter of credit (L/C) fraud case in Iran.

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Another L/C facility for US wind power

A wind power plant in the state of Illinois is the latest in an ever-lengthening string of such projects in the US to feature a letter of credit (L/C) facility in its financing structure.

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L/C-backed credit for Thai businesses recovering from floods

A Thai bank has introduced a series of measures to help business customers recover from damage caused by the devastating floods that hit Thailand last year.

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Japanese investors deterred by slow L/C settlement in Bangladesh

Japanese investors say delays in letter of credit (L/C) settlement at Bangladesh's banks is the main barrier to trade and investment expansion between the two countries.

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Indian tablet court case to centre on L/C dispute

A letter of credit (L/C) looks set to become centre of attention in an anticipated legal showdown between the British-Indian manufacturer of the world's cheapest tablet computer and the Indian assembler of the tablet.

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More than one hundred forged L/Cs presented in one month

India's Central Bureau of Investigation (CBI) has arrested five people suspected of presenting forged letters of credit (L/Cs) worth at least US$500,000.

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Alleged bank fraudsters used L/Cs to channel funds

Former employees of the State Bank of India (SBI) and others used letters of credit (L/Cs) to fraudulently channel funds from the bank to bogus companies, according to a judge in Delhi.

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New L/C highs anticipated in Saudi Arabia

Saudi Arabia's strong economic performance is behind a surge in letters of credit (L/Cs) according to one of the kingdom's largest banks.

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Smaller banks in L/C trades with Iran

Some smaller banks are still providing letters of credit (L/Cs) for legitimate trades with Iran.

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Nigeria loosens forex rules for unconfirmed L/C negotiation

The Central Bank of Nigeria (CBN) has said that funds from the official foreign exchange market can now be used to negotiate unconfirmed letters of credit (L/Cs) for certain types of imports.

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Moody's warns on L/C backed municipal bonds

Bank rating downgrades in the US could hurt municipal debt backed by letters of credit (L/Cs) and other facilities, according to Moody's Investors Services.

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Nigeria mulls use of L/Cs to curb dangerous imports

Nigeria is considering using letters of credit (L/Cs) in its endeavour to curb the importation of fake, substandard and sometimes downright dangerous goods.

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Copper speculators still using L/Cs in China

Speculators in China who reckon to be dealing in copper are still using letters of credit (L/Cs) to obtain credit at preferential rates.

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Federal agency declines request to pay the value of standby L/C

The federal agency that insures deposits in US banks has refused requests from a municipal authority to pay out the value of a standby letter of credit (L/C) put up by a property developer in Colorado.

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Wind project in Hawaii features L/C financing

A multi-million US dollar wind farm in Hawaii is to use letters of credit (L/Cs) in its financing package.

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Indian exporters unhappy with Iranian L/C arrangements

Indian exporters unhappy with letter of credit (L/C) arrangements with Iran have called on India's finance ministry to allow them to obtain advance payments from Iranian buyers.

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Cash for L/Cs obtained dishonestly by Ghanaian banker

An investment banker has been accused in a court in Ghana of dishonestly obtaining cash for letters of credit (L/C) that should have been used to finance a sugar deal.

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Bankers knew of Iranian L/C fraud

The trial is continuing of people allegedly involved in the highly politicised multi-billion US dollar frauds involving letters of credit (L/Cs) in Iran.

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Zurich offers L/C alternative to captive insurers

Zurich Financial Services Ltd. has launched a product that claims to be a new alternative to letters of credit (L/Cs) for the UK's captive insurance companies.

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Central Bank of Nigeria to probe L/Cs for petroleum imports

The Central Bank of Nigeria (CBN) has ordered all of the country's authorised foreign exchange dealers to submit information and data on letters of credit (L/Cs) used to import petroleum products over a five-year period.

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US fraudster used false L/Cs

A man from the US state of Wyoming has pleaded guilty to several charges in a case that featured an investment fraud involving the use of a false letter of credit (L/C).

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Dutch retailer adopts TradeCard

TradeCard, the online platform that claims to provide an alternative to letters of credit (L/Cs), has signed an agreement with one of the Netherlands' largest women's wear retailers.

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Asian firms shying away from L/Cs say credit insurers

Credit insurers in Asia are claiming that a shift away from letters of credit (L/Cs) and towards open account trading terms is one factor why credit insurance business is increasing in the region.

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Jamaica reveals extent of L/C and other frauds

Data from Jamaica's fraud squad has revealed that various kinds of scams fleeced individuals and organisations of more than US$5 billion over a five-year period.

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Iran to resume oil exports to Pakistan without L/Cs

Iran may resume supplies of crude oil to Pakistan for the first time since letters of credit (L/Cs) became unavailable for such trades.

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IFC mulls L/C support for Libya

The International Finance Corporation (IFC) is mulling providing support for letter of credit (L/C) business in Libya as it seeks to rebuild its economy.

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L/C guidance for Canadian pension fund sponsors

The Canadian authorities have issued new online guidance for users of letters of credit (L/Cs) within the country's federal defined benefit pension plans.

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L/C shortage blamed on Nigerian fuel subsidy probe

A dearth of letters of credit (L/Cs) in Nigeria is one of the reasons why the country is currently experiencing fuel shortages.

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Indian rice sales to Iran may resume on rupee L/C terms

Shipments of Indian rice to Iran may soon resume if reports of letters of credit (L/Cs) becoming available for such transactions have substance.

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Unicredit to provide guarantees and L/Cs from mainland China

Italy based UniCredit has been given the go ahead to offer letters of credit (L/Cs), bank guarantees and several more services from a fully-fledged branch on mainland China.

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Burma and Bangladesh commence L/C transactions

Burma and Bangladesh have started to do business on letter of credit (L/C) terms in the countries' efforts to boost bilateral trade.

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Chinese shun L/C business with Iran

Chinese exporters are refusing letters of credit (L/Cs) from Iranian importers, but not as a direct result of international sanctions.

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Improved L/C access for Pakistan's banks

A subsidiary of the Islamic Development Bank (IDB) has signed a memorandum of understanding (MoU) with the State Bank of Pakistan (SBP) intended to provide the country's banks with better access to letters of credit (L/Cs).

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French conglomerate opts for GTC's platform for L/Cs and bank guarantees

Safran of France has selected GlobalTrade Corporation (GTC) to install an online multi-bank platform to help manage its trade finance functions.

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Qatar and UAE order stop to L/C business with Iran

The Gulf states of Qatar and the UAE have ordered banks in each country to stop issuing letters of credit (L/Cs) for trades with Iran.

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Former US bank president arranged L/Cs in exchange for bribes

The former president of Florida's largest privately owned state-chartered commercial bank has pleaded guilty to accepting nearly US$500,000 in bribes.

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Sanctions cut off L/Cs for Iran's grain import

New EU sanctions have made it impossible for grain exporters to obtain letters of credit (L/Cs) for food imports to Iran.

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Davos concerns over global L/C availability

Participants at the World Economic Forum (WEF) in Davos last week expressed concerns that letter of credit (L/C) business will be under pressure since the euro crisis is forcing a process of deglobalisation.

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Guarantees for Saudi exports on L/C terms

The Saudi Fund for Development (SDF) has signed a cooperation agreement with Banque Saudi Fransi to support export letter of credit (L/C) transactions.

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Gloomy trade finance outlook for 2012

A recent survey by the International Chamber of Commerce and the International Monetary Fund has found that financial institutions generally anticipate weak demand for trade finance products in 2012.

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Steelmakers asked to pay on L/C terms

Suppliers of iron ore and coal are becoming increasingly reluctant to deal on open account terms with Europe's steelmakers.

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India may not extend L/C for Canadian tablet computers

India's ministry of human resource development (MHRD) has threatened not to extend the letter of credit (L/C) guaranteeing payment for the Canadian manufacturer of what is reputedly the world's cheapest tablet computer.

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No L/Cs for phoney acquisitions

The US Securities and Exchange Commission (SEC) has won a judgment against a businessman who misleadingly said that he had letters of credit (L/Cs) ready and waiting for two major US takeover bids.

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Burma and Bangladesh increase direct L/C limit

Burma and Bangladesh look set to do more business after reaching an agreement to increase the value of direct letters of credit (L/Cs) available for bilateral trade.

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Kuwait and Saudi Arabia reject Pakistan's request for L/C alternative

Kuwait and Saudi Arabia have turned down Pakistan's requests to supply oil on long-term credit.

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Commodities under pressure as L/Cs dry up

At the end of last year, several European banks announced that they would be scaling back their commodities trading and financing activities as a result of the credit crunch.

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Vietnamese exporters decline credit insurance to bolster L/C and cash exports

The Vietnamese government is looking for ways to boost foreign trade by providing exporters with more financing options and guaranteeing export payments.

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Ratings will improve state-owned US bank's L/C provision

The Standard & Poor's (S&P) ratings agency has upgraded its ratings for the only state-owned bank in the US.

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Iran bars L/Cs for UAE imports

Iranian importers have been barred from opening of letters of credit (L/Cs) for imports from the UAE, according to local media reports.

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More capital and more L/Cs for India's Exim Bank

India's lower house of parliament has approved a bill to increase the authorised capital of Export Import Bank of India (Exim Bank) from the equivalent of around US$380 million to about US$1.9 billion.

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Ousted US bank CEO accused of L/C irregularities

The former employers of a bank CEO in the US state of Minnesota have accused their former employee of using letters of credit (L/Cs) to secure personal loans for himself.

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Indian co-operative banks seek L/C clarification

India's Urban Co-operative Banks (UCBs) are calling on the Reserve Bank of India (RBI) for greater clarity over whether or not bill discounting under letters of credit (L/Cs) is permissible.

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40 months jail for US L/C fraudster

A former loan officer at the Bank of Crocker has been sentenced to 40-month jail term for embezzlement.

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L/Cs to support pensions in Manitoba soon

Letters of credit (L/Cs) will soon help to strengthen pension legislation in Manitoba as the Canadian province works to improve the security of pension plans by providing more funding options for employers, particularly during tough economic times.

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Bangladesh concerned over Islamic Development Bank's L/C offer

The Islamic Development Bank's (IDB's) trade financing arm has offered to open letters of credit (L/Cs) for state-owned Bangladesh Petroleum Corporation (BPC).

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State Bank of India to target trade finance opportunities in Qatar

State Bank of India (SBI) says it is looking for bank guarantee and letter of credit (L/C) business as well as other trade and project finance opportunities from its new operations in the Gulf state of Qatar.

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Pressure on all fronts for Iranian L/C business

Increased external pressures and flaws in Iran's banking system are substantially limiting Iranian letter of credit (L/C) business.

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Pre-budget L/Cs pressure Sri Lankan economy

Letters of credit (L/Cs) opened by Sri Lankan importers before the government devalued the Sri Lankan rupee (SLR) are causing exchange rate and inflationary pressures.

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Arab states to monitor Syria's L/Cs

Arab states will monitor letters ofcredit (L/Cs) in Syria as violence in the country continues and sanctions imposed on President Bashar al-Assad's government tighten.

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Guarantees and L/Cs help Credit Bank of Moscow boost profits

Bank guarantees and letters of credit (L/Cs) have helped Credit Bank of Moscow (CBM) to report net income for the first 9 months of 2011 up by nearly one-third compared with the same period last year.

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Indian airline mulls L/Cs in bail out plans

An ailing Indian airline is considering using letters of credit (L/Cs) to help bail it out of financial difficulties.

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Bangladesh mulls L/C restrictions to curb luxury imports

Bangladesh may insist that importers of luxury goods seek official authorisation for letters of credit (L/Cs) as the government considers a range of measures to reduce the country's balance of payment deficit.

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Philippines eases L/C extension rules

Extensions to letters of credit (L/Cs) will become easier to obtain in the Philippines under new foreign exchange liberalisation measures introduced by the Bangko Sentral ng Pilipinas (BSP).

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More developments on Iran's US$2.8bn L/C fraud

More details have emerged about the alleged US$2.8 billion letter of credit (L/C) fraud that has rocked the government of Iran's President Mahmoud Ahmadinejad.

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Sanctions may impact on L/Cs for Syria

Syria may see a letter of credit (L/C) shortage if tougher economic sanctions are imposed on the regime of Bashar Al Assad.

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Thailand's floods prompt L/C amendment calls

Thailand's recent floods have prompted traders to call for amendments to letters of credit (L/Cs) pertaining to goods stranded in some of the country's ports.

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No L/Cs yet for Libya's grain imports

Days after a Libyan central bank official said that letters of credit (L/Cs) are beginning to flow again in the country it has emerged that they are certainly not yet available for all types of imports.

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J P Morgan agrees L/C re-issuance deal with India's UBI

J P Morgan has agreed a letter of credit (L/C) re-issuance deal with Union Bank of India (UBI).

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L/Cs return to Libya, retreat from Syria

Letters of credit (L/Cs) are starting to flow again in Libya, where the central bank is reasserting its control over the country's banking system.

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Pakistan mulls L/Cs to unblock energy finances

Pakistan plans to utilise letters of credit (L/Cs) in long-term measures to prevent the re-occurrence of the inter-corporate circular debt that is currently choking energy sector financial flows.

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L/Cs to improve Indian trade flows through Bangladesh

Letters of credit (L/Cs) could play a structural role in new arrangements for goods travelling to and from north eastern India via Bangladesh.

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Trade with mainland China boosts Taiwanese L/C flows

A Taiwanese bank has reported that improved trade flows between mainland China and Taiwan have significantly boosted its letter of credit (L/C) business.

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New platform for Exim Bank Tanzania's L/Cs and guarantees

Exim Bank Tanzania (EBT) has introduced a new state-of-the-art information technology platform that it claims will improve its letter of credit (L/C) issuance and bank guarantee services.

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Impeachment proceedings for Iran's economy minister over alleged L/C fraud

The Iranian authorities have decided to start impeachment proceedings on the country's minister of economy over the alleged US$2.8 billion financial scandal in which letters of credit (L/Cs) are supposed to have played a big role.

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L/Cs to blame for labour unrest in Ghana

A lack of letters of credit (L/Cs) is to blame for financial difficulties at an established Ghanaian timber firm according to its general manager.

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Saudi Hollandi rolls out L/C and bank guarantee services

Saudi Arabia's oldest bank has opened its second trade services window (TSW), which aims to make it easier for corporates and small- and medium-sized enterprises to access trade services, including letters of credit (L/Cs) and bank guarantees.

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Investigators seize L/Cs from US non-profit agency

Virginia State Police has seized letters of credit (L/Cs) as well as a wide range of documents and computers in the course of its investigations into alleged embezzlement at Rooftop of Virginia Community Action Programme (RVCAP).

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More arrests in alleged Iranian L/C fraud

A further fourteen people have been arrested in the alleged multi billion US dollar letter of credit (L/C) frauds that have shaken the government of Iranian President Mahmoud Ahmadinejad.

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Pakistan's banks refuse L/Cs for Iranian power

Pakistan's banks are reportedly refusing to open the letters of credit (L/Cs) required for a project to import 100 megawatts of electricity from Iran.

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Wells Fargo and Indian Bank announce trade services agreement

Wells Fargo & Company of the US has announced it will act as a trade services provider for Chennai-based Indian Bank as it seeks to improve its letter of credit (L/C) and other trade services in Asia.

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More arrests in Iranian L/C fraud

At least 19 people have now been arrested in an alleged US$2.6 billion letter of credit (L/C) fraud that has shaken the government of Iranian President Mahmoud Ahmadinejad (Fraud, 13 September 2011).

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HSBC plans to be first bank in Malta with direct settlement in Chinese Renminbi

HSBC Bank says it will be the first bank in Malta to offer the means to complete cross-border direct settlements in Chinese Renminbi (RMB).

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Documentary credit insurance gaining popularity in Arab and Islamic world

A programme that insures letter of credit (L/C) transactions is gaining popularity in the Arab and Islamic world according to the Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC).

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New ICC rules help to grow Deutsche Bank's global guarantee and standby L/C programmes

Deutsche Bank says the International Chamber of Commerce's (ICC's) new rules for demand guarantees (URD758) will help it expand its global guarantee and standby letter of credit (L/C) programmes.

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Taiwan to recognise Chinese L/Cs and bank guarantees as collateral

Taiwan's Financial Supervisory Commission (FSC) has said that it will soon accept letters of credit (L/Cs) and bank guarantees issued by mainland Chinese banks as collateral.

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Israel convicts L/C fraudsters

Four Israeli businessmen have been convicted for customs, tax, forgery and fraud offences.

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L/C shortage adds to Yemeni steel woes

Unwillingness on the part of foreign suppliers to sell to Yemeni customers on letter of credit (L/C) terms is one of several problems faced by the country's steel producers.

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Massive US$2.6 billion L/C fraud reports from Iran

Reports are emerging from Iran that the authorities have detained several suspects in an alleged US$2.6 billion letter of credit (L/C) fraud.

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L/C business set to expand as First Gulf Bank eyes Asian opportunities

First Gulf Bank (FGB) plans to set up four more representative branches in Asia where the Abu Dhabi-based bank already writes letter of credit (L/C) business.

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Iran and Pakistan mull L/C arrangements

Pakistan may guarantee letters of credit (L/Cs) for business with Iran as the two countries aim to strengthen their trade and investment links.

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Islamic Development Bank positioned to support Libya's international trade

The Islamic Development Bank (IDB) could help facilitate letter of credit (L/C) transactions and provide a range of other facilities to help Libya reengage in international trade.

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Solar project secures L/C funding

The developers of a solar power project in the US state of California have closed a US$935 million financing that includes letter of credit (L/C) funding.

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Hong Kong duo jailed for L/C fraud

A Hong Kong court has sentenced two company directors to jail terms for their part in letter of credit (L/C) frauds.

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China curtails use of copper L/Cs for credit

China's central bank has introduced a measure intended to stop commodity traders using letters of credit (L/Cs) ostensibly just for copper imports to raise hard to come by credit from banks.

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Ethiopian bankers guilty of L/C mismanagement

Nine Ethiopian bankers have been found guilty of banking misdemeanours involving letter of credit (L/C) transactions.

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L/C shortage may delay payments to garment workers

A shortage of letters of credit (L/Cs) may delay payments to garment workers in Bangladesh.

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State Bank of India reveals eurozone exposure

State Bank of India (SBI) has announced that letters of credit (L/Cs) and bank guarantees feature in its exposure to eurozone institutions.

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Bank guarantees gaining popularity in Nigeria

Bank guarantees from commercial banks are becoming much more popular as a financing instrument in Nigeria, according a senior officer at the country's oldest and largest development financing institution.

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US L/Cs exposed to eurozone risks

Letters of credit (L/Cs) issued by US banks may be exposed to risks in Europe's banking sector.

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HSBC and Islamic Development Bank to develop Shariah-compliant trade finance products

HSBC Holdings has signed a memorandum of understanding (MoU) to provide letters of credit (L/Cs) in a programme to facilitate Shariah-compliant trade financing activities operated by an affiliate of the Islamic Development Bank (IDB).

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BNP Paribas lands L/C business in Ukraine

Ukraine has selected BNP Paribas to provide letters of credit (L/Cs) in a multi-million US dollar project to rehabilitate and replace deteriorated water supply, wastewater and solid waste systems.

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L/C features in wind-power project financing

A letter of credit (L/C) features in a financing deal for a Canadian wind-power generator developing a project in the US state of North Dakota.

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Pakistan to release funds for L/C for coal gasification plant

Pakistan has promised to release funds to help a power generator obtain the letters of credit (L/Cs) it needs to build an innovative new coal gasification plant.

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Former US bank officer admits L/C fraud

A former US bank officer who used fraudulent letters of credit (L/Cs) as just one way of stealing more than US$450,000 from the bank where he was employed has pleaded guilty to fraud charges.

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Lack of L/Cs may hinder resumption of Egyptian imports of Irish beef

Letters of credit (L/Cs) may not be available for sales of Irish beef to Egypt as it mulls reopening this once very popular market.

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Foreign banks ask for customer identification in L/C transactions with Nigeria

Foreign correspondent banks are insisting on knowing the identities of Nigerian importers before writing letter of credit (L/C) business with local counterparts, according to media reports.

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Bogus L/Cs in US Ponzi scheme

Letters of credit (L/Cs) have allegedly been used in a Ponzi scheme that the US Securities and Exchange Commission (SEC) says was operated by the CEO of a bogus foreign currency trading company.

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New IFC support for L/Cs in Bangladesh

The International Finance Corporation (IFC) has launched an US$80 million short-term liquidity facility to provide banks in Bangladesh with working capital and trade financing capacity.

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L/Cs fail to show in Nigeria's power sector

A flow of letters of credit (L/Cs) anticipated from power generators in Nigeria has failed to materialise due to a lack of government funding.

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L/C surge in US municipal bond market

The value of new letters of credit (L/Cs) used in the US municipal bond market more than tripled in the second quarter of this year over the value recorded in the first quarter of 2011, according to data from Thomson Reuters.

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Post-credit crunch shift to bank guarantees/L/Cs sustained

Businesses in the Middle East and North Africa are continuing to shy away from open account trading according to Standard Chartered's managing director and head of transaction banking in the UAE.

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Chinese firms use bank guarantees and L/Cs to obtain credit overseas

Chinese firms are using bank guarantees and letters of credit (L/Cs) to obtain credit for their subsidiaries from overseas banks.

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India mulls rupee-denominated L/Cs

India's finance ministry is mulling whether to allow buyers of Iranian crude to open rupee-denominated letters of credit (L/Cs).

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Indian firms and lenders to share views on L/C and bank guarantee positions

Credit Information Bureau of India Limited (CIBIL) says it is now able to provide corporate clients with information on letter of credit (L/C), bank guarantee and other debt related exposures.

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Witnesses defend Ethiopian bankers on L/C charges

An Ethiopian court has heard the testimonies of 20 witnesses in defence of seven former employees of Awash International Bank (AIB).

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Pakistan releases funds to make power L/Cs more available

The government of Pakistan has released funds of around US$128 million to make letters of credit (L/Cs) more available for the country's largest vehicle fuel retailer.

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Bank guarantees and L/Cs contribute to Chinese credit growth concerns

Bank guarantees and letters of credit (L/Cs) are partly responsible for a big increase in off-balance sheet loans reported by Chinese banks.

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South Korea presses Vietnam for new L/C arrangements

South Korean entrepreneurs have been pressing for improved banking arrangements between Vietnam and South Korea with the aim of providing traders with better access to letters of credit (L/Cs).

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India and Pakistan could improve L/C and bank guarantee availability

Talks between Indian and Pakistani officials could lead the way to improved letter of credit (L/C) and bank guarantee availability for bilateral trades between the two countries.

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Financial irregularities found at Trade Bank of Iraq

The chief executive of the Trade Bank of Iraq (TBI) has been dismissed after an official investigation found "financial violations" at the bank.

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Insurance industry L/Cs under pressure from captive trusts

Captive insurance companies should consider using captive trusts instead of letters of credit (L/Cs) as collateral according to a vice president at Wells Fargo.

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New York state farmers urged to use L/C-backed scheme

The Agriculture Commissioner of New York state has reminded farmers there to sell only to dealers prepared to make purchases guaranteed by letters of credit (L/Cs) or a bond.

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Belize government resists power company's L/C calls

An electricity distributor in Belize has called on the government to put up a letter of credit (L/C) that is double the value of the one it currently provides to the power provider.

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L/C boost for trade between Pakistan and Tajikistan

Letters of credit (L/Cs) are to become more available for transactions between counterparties in Pakistan and Tajikistan.

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US$1 billion for Bangladeshi L/Cs

Bangladesh's central bank has injected more than US$1 billion into the country's commercial banks to help them cope with demand for the US dollar, which they mainly need to settle import letters of credit (L/Cs).

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More L/C and guarantee availability in the Philippines

Another bank in the Philippines is preparing to offer commercial services, including foreign letters of credit (L/Cs) and bank guarantees.

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Testimonies complete in Ethiopian L/C fraud trial

An Ethiopian court has finished hearing testimonies against a group of former employees of Awash International Bank (AIB) who stand accused of mishandling of letters of credit (L/Cs).

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Commerzbank introduces renminbi L/Cs and guarantees in Germany

Commerzbank has introduced renminbi services that will include letters of credit (L/Cs) and bank guarantees in the Chinese currency for its customers in Germany.

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Saudi Arabia reports sharp rise in import L/Cs

Saudi Arabia has reported a substantial year on year rise in import letters of credit (L/Cs), although the value of such credits is lower than earlier this year.

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Dubai clerk faces forged L/C allegations

A former clerk has appeared in a Dubai court charged with embezzling the equivalent of around US$135,000.

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US bank may make L/Cs and guarantees available for clean energy projects

A bank to finance clean energy projects proposed by the US Senate may offer letters of credit (L/Cs) as well as other financing instruments for energy efficient power solutions.

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Nepal moves to fend off worldwide L/C refusals

A committee of the Nepalese parliament has cleared anti-money laundering legislation that the country needs to enact within the next three weeks.

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Lack of L/C fuels uncertainty over US biofuel power plant

A biofuel energy developer has so far failed to post the letter of credit (L/C) required if it fails to start production at a barley protein meal power plant in the US state of Virginia.

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Philippines employs L/Cs and bank guarantees to support better terms for local firms

The government of the Philippines is using letters of credit (L/Cs) or bank guarantees in new arrangements with local firms that supply goods to the public sector.

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Ethiopian L/C fraud trial begins

The trial of 10 former employees of Ethiopia's Awash International Bank (AIB) for alleged letter of credit (L/C) misdemeanours has begun.

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IFC to support L/Cs and bank guarantees for Lien Viet Bank

The International Finance Corporation (IFC) is to provide guarantees worth US$5 million to Lien Viet Bank under an agreement signed earlier this month.

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Official suspended after alleged L/C fraud at Pakistan Telecommunications Authority

Pakistan's prime minister has suspended a board member of the Pakistan Telecommunications Authority (PTA) for allegedly causing losses to the state of 7.61 billion Pakistan rupees (Rs7.61 billion).

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China ends death penalty for L/C frauds

China has introduced new legislation abolishing the death penalty for people found guilty of letter of credit (L/C) fraud.

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Asian Development Bank and Australia to guarantee L/Cs to developing Asian economies

Australia's export credit agency has signed a risk-sharing agreement with the Asian Development Bank (ADB) to guarantee letters of credit (L/Cs) for exports of Australian goods into certain Asian countries.

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Commodity L/Cs used in China for inventory financing

Letters of credit (L/Cs) opened for commodity trades are being used by Chinese companies in inventory financings that raise funds for a variety of short-term investment opportunities.

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Political considerations may be stalling L/C fraud investigation in Pakistan

A letter of credit (L/C) fraud allegation revealed nearly five years ago in Pakistan has still not come to court, triggering media speculation that political considerations are stalling judicial proceedings.

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More L/C and bank guarantee availability for companies in northern Tanzania

Tanzania's National Bank of Commerce (NBC) has re-launched its trade finance services for its customers in northern Tanzania.

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Yemen moves to improve L/C availability

The Central Bank of Yemen (CBY) has made it easier for banks to cover import letters of credit (L/Cs) as the country struggles to find sufficient currency to finance much needed imports.

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No export bans on concluded L/C contracts says Indian court

Mumbai High Court has held that the Indian government cannot ban exports of any product with retrospective effect.

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Bangladesh reports L/C surge due to upwards price trends

Bangladesh Bank (BB) has reported a very substantial increase in the value of import letters of credit (L/Cs).

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US dollar shortage hits Yemen's L/C supply

A shortage of US dollars is making letters of credit (L/Cs) harder to come by in Yemen.

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Iran proposes joint bank with China to ease L/C shortage

An Iranian official is hoping that a Chinese delegation expected soon in Iran will consider the idea of a joint bank.

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Ghana paid correct L/C beneficiaries in refinery fraud allegations

The board of Ghana's Tema Oil Refinery (TOR) has found that the correct beneficiaries were paid under a letter of credit (L/C) for a controversial shipment of crude oil delivered to the refinery.

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HSH Nordbank implements TLM Trade Finance

HSH Nordbank says it has the implemented the TLM Trade Finance solution to automate its business documentation, including letters of credit (L/Cs), on a single trade finance platform.

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Kenyan government unlocks financing for power project

Investors backing Kenya's 300MW Lake Turkana wind power project, which was stalled by a lack of letters of credit (L/Cs), are confident that it will go ahead soon.

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Lawyers warn US landlords of L/C threat

The US Federal Deposit Insurance Corporation (FDIC) closed 157 banks in 2010, and there are apparently even more banks under threat of closure.

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Ethiopian bankers charged with L/C mishandling

Ten former employees of Awash International Bank (AIB) have been charged with mishandling letters of credit (L/Cs) and abusing their authority as bank employees.

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Japanese disasters impact on world L/C markets

The impact of Japan's devastating earthquake and tsunami compounded by nuclear safety fears will clearly be felt by the banks writing Japanese letter of credit (L/C) business.

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Sinosure and JP Morgan ink L/C insurance agreement

China's Export & Credit Insurance Corporation (Sinosure) and JP Morgan have signed an agreement under which insurance should be easier to obtain for Chinese companies requiring letters of credit (L/Cs).

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US EximBank's L/C support for Egypt's recovery

Reviving Egypt's letter of credit (L/C) industry is one of Washington's several objectives in terms of its support for the North African country as it works to revitalise its economy in the post-Mubarak era.

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Libya's oil exports stalled by dearth of L/Cs

International banks are refusing to provide letters of credit (L/Cs) for Libyan oil exports according to a global oil analyst.

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Indian coal boss implicated in bank guarantee investigation

India's Central Bureau of Investigations (CBI) is seeking permission to prosecute the head of a state-owned coal mining operation in an alleged fraud case that involves a fake bank guarantee.

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Libya's bank in Rome still providing L/Cs

A Libyan government controlled bank in Italy is still providing letters of credit (L/Cs) according to a bank official.

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Saudi L/C growth anticipated as imports rise

Letter of credit (L/C) business in Saudi Arabia is expected to grow this year as import flows improve according to data released by the Saudi Arabian Monetary Agency (SAMA).

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L/C surge sparks liquidity concerns in Bangladesh

Bangladesh has reported a surge in the value of letters of credit (L/Cs) settled for imports.

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Libyan central bank working in Benghazi to restart L/C flows

The Central Bank of Libya (CBL) is looking for ways to restart the letter of credit (L/C) flows that are essential to the country's economy.

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Guarantees and L/Cs hold up Pakistan's and Afghanistan's trade pact

A lack of agreement on bank guarantee and letter of credit (L/C) arrangements have been identified as reasons why the implementation on the controversial Afghanistan-Pakistan Transit Trade Agreement (APTTA) has been delayed until later this year.

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Lack of L/Cs stalls Libyan oil exports

A lack of letters of credit (L/Cs) for Libyan oil exports is amongst reasons why Opec producers are mulling making more oil available to world markets.

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New schemes to boost US exports to Vietnam

Two export credit guarantee programmes are set to boost US exports to Vietnam.

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Cruise line accuses travel firm principal of L/C fraud

One of the world's largest cruise ship operators is alleging that the principal of a travel firm in Trinidad posted fraudulent letters of credit (L/Cs) in a charter arrangement.

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Guarantees and L/Cs sharply up in Azerbaijan

Azerbaijani banks reported sharply increased values of guarantees and letters of credit (L/Cs) issued last year.

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New scheme to boost L/C and guarantee support for UK exporters

Small companies in the UK are to be offered state-guaranteed loans to help their export efforts.

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Pakistan State Oil faces L/C payment defaults

Pakistan State Oil (PSO) is seeking direct government support to avoid defaulting on letters of credit (L/Cs) due over the next few weeks.

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Egyptian worries over L/Cs for grain imports

Trade and shipping sources in Egypt are concerned that difficulties processing letters of credit (L/Cs) may cause grain shortages in the country.

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Nigeria enables yuan-denominated L/Cs

Nigeria has included the Chinese yuan on the list of currencies it allows for trade settlement in the foreign exchange market.

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YMCA's L/C-guaranteed bond runs into problems

A letter of credit (L/C) guaranteeing US bonds is proving problematic for JPMorgan Chase since the YMCA in the US state of Connecticut stopped making debt service payments on its borrowings.

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HSBC Russia announces Yuan-denominated L/Cs

HSBC Russia has started issuing letters of credit (L/Cs) in Chinese yuan as the two countries seek to strengthen bilateral relations.

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L/Cs set to heap more pressure on Ghana's currency crisis

Record losses for the Ghanaian cedi against the US dollar have been reported this month, as corporate demand for the US currency remains high while inflows are slower than usual.

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L/Cs feature in 20-year legal battle between Kuwait and Iraq

Letters of credit (L/Cs) are guaranteeing that Kuwait will finally be paid for airlines seized when it was invaded by Iraq in 1990 if it wins an upcoming court case in Canada.

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Indian tea exporters fear L/C ban on sales to Iran

India's letter of credit (L/C)-reliant tea exports to Iran are likely to be affected by the Reserve Bank of India's (RBI) circular that has already made the importation of Iranian oil difficult.

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US company paid Trade Bank of Iraq official for favourable L/C rates

An official at the Trade Bank of Iraq (TBI) allegedly made letters of credit (L/Cs) available at a preferential rate to a US company according to a new lawsuit.

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L/C fraudster amongst Chinese hyper-rich entrepreneurs

A letter of credit (L/C) fraudster is one of just a handful of entrepreneurs to have been listed as 'problematic' in China's rich list.

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Local and international banks in L/C consortium for Pakistan's textile industry

Pakistan's MCB Bank has joined with Citibank and two international development banks (IDBs) to support an important letter of credit (L/C) deal for Pakistan's textile industry.

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More L/C shortages for Ghana's refinery

Ghana's Tema oil refinery has been forced to close down again because of a continued problem with a lack of letters of credit (L/Cs).

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Newspaper raises issue of Sri Lankan MPs' L/C entitlement for duty-free vehicle imports

As many as sixty-five members of the new Sri Lankan parliament have sold permits to businessmen that allow them to buy duty-free vehicles according to local media.

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Sudan employs L/C ban to preserve hard currency reserves

Sudan has introduced a selective ban on import letters of credit (L/Cs) in an attempt to bolster the country's foreign currency reserves.

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India ditches euro L/Cs

Indian banks are telling traders to denominate letters of credit (L/Cs) in US dollars rather than euros.

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Ethiopian bank chief fired in wake of L/C misdemeanours

The longest serving president of Ethiopia's Awash International Bank (AIB) has been sacked following an investigation into letter of credit (L/C) misdemeanours.

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Bangladesh sees surge in import L/Cs

Bangladesh's central bank has reported a huge surge in the value of import letters of credit (L/Cs) settled in the four months to October 2010 compared with the same period in the previous year.

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India and Iran to meet to resolve L/C stoppage

Senior central bankers from India and Iran are to meet this New Year to find a way for India to pay for crude oil imports from Iran.

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Abu Dhabi Commercial Bank launches online L/C and bank guarantee services

Abu Dhabi Commercial Bank (ADCB) has launched an online trade finance platform, ProTrade, so that its customers can manage trade finance transactions from anywhere at any time.

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UAE pushes L/C insurance facility

The UAE's new export credit agency (ECA) has been pushing local companies to use its services in a bid to boost exports.

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China closer to abolishing death sentence for L/C fraud

China is a step nearer to abolishing the death penalty for people found guilty of letter of credit (L/C) fraud.

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Canada proposes new uses for L/Cs in pension plans

Letters of credit (L/Cs) may play a key role in Canada's federally regulated private pension plans if government proposals are approved.

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Four jailed for mortgage frauds involving L/Cs

Four men have been jailed for their parts in a mortgage fraud scheme in the US state of North Carolina.

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Philippines allows more trade finance facilities following L/C measures for thrift banks

The Bangko Sentral ng Pilipinas (BSP) has issued a memorandum authorising the country's thrift banks to rediscount packing loans and export bills.

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Weihai City Commercial Bank adopts TLM Trade Finance solution

SmartStream Technologies, which specialises in financial transaction lifecycle management, has announced that one of China's city commercial banks has adopted one of its solutions.

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India makes L/Cs more available for exports to Laos

Export-Import Bank of India (Exim Bank India) has extended a line of credit (LOC) of US$72.55 million to exports of eligible goods and services to Laos.

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L/C fraudster ordered to repay £2 million

A top London lawyer who conned millions from the bank that employed her to help a friend's ailing Indonesian airline has been ordered to repay more than £2 million.

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Nigeria's L/C decision tightens US dollar supply

Nigeria's central bank has issued a ruling specifying that only foreign currency acquired in the interbank market can be used to fund unconfirmed letters of credit (L/Cs).

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Sharia-compliant financing scheme features L/Cs and bank guarantees

Bahrain's BMI Bank has launched a new Sharia-compliant financing scheme that includes letters of credit (L/Cs) and bank guarantees.

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Taiwanese target Chinese bank guarantee market

Taiwanese banks are set to target mainland China's small- and medium-sized enterprises (SMEs) by offering yuan denominated bank guarantees at competitive rates.

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L/C features in Ghanaian cocaine trial

A court in Ghana has heard that goods in a container in which 125 slabs of cocaine were found should have contained only goods related to a transaction financed by letters of credit (L/Cs).

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L/Cs may help ease Indian cotton prices

Indian business representatives are calling on the government to allow cotton exports only against letters of credit (L/Cs).

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Filipino banana exporters mull options for Iranian L/C shortages

Contract growers of export bananas in the Philippines are considering ways to regain sales lost to Iran because of the difficulties Iranian importers have raising letters of credit (L/Cs).

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New outlet for Asia-US L/Cs

A US-based finance company has established a new division that will provide letters of credit (L/Cs) specifically for businesses involved in trades between Asia and the US.

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US developer alleges misconduct by county officials seeking L/Cs

County officials in Georgetown, South Carolina, allegedly made false statements when they tried to obtain letters of credit (L/Cs) associated with a local property development.

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Vietnam to trial L/C alternative

By Mark Ford

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Moody's cuts ratings on 221 L/C backed US municipal bonds

Moody's Investors Service has cut the long-term rating of 221 letter of credit (L/C)-backed municipal bond issues.

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American football star guilty of advance fee fraud jailed for 20 years

Former New York Giants player Clyde Hall has been sentenced to 20 years in prison for his part in several frauds, including operating an advance fee scheme.

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Iran's US$300 million L/C for Lebanon

President Mahmoud Ahmadinejad of Iran has offered a US$300 million letter of credit (L/C) to Lebanon to help it boost its economy.

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Traders find ways round Iranian L/C shortage

Importers of petrochemicals from Iran are finding several ways to overcome the problem of not being able to use letters of credit (L/Cs) to buy Iranian products.

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Exim Bank India makes L/Cs more available for exports to Ghana

Export-Import Bank of India (Exim Bank India) has made letters of credit (L/Cs) more available for Indian exporters selling to Ghana by extending a new line of credit.

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Australian bank says Bolero link should improve bank guarantee and L/C services

Commonwealth Bank of Australia (CBA) has announced that it has signed an agreement with Bolero that the bank hopes will enable it to provide improved trade finance services to its customers.

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L/C signals rapprochement between Libya and South Korea

Tripoli has issued a letter of credit (L/C) to Hyundai to enable the South Korean engineering firm to go ahead and build four power stations in Libya.

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Saudi Arabia reports big increase in import L/Cs

The value of new import letters of credit (L/Cs) issued in Saudi Arabia during August increased by more than 40 per cent compared with the same month last year.

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New team at Eversheds to advise on L/C terms

International law firm, Eversheds, is to expand its operations by establishing a new International Trade team.

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Bangladesh extends L/C discounting rule

Bangladesh Bank (BB) has asked all local commercial banks to allow discount on accepted bills against import letters of credit (L/Cs).

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Outotec opts for Bolero

A major provider of process solutions, technologies and services for the mining and metallurgical industries has signed an agreement to use Bolero's Multi-Bank Trade Finance service.

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New Ethiopian bank advisor investigated for L/C misdemeanours

Awash International Bank (AIB) has appointed one of its former vice presidents for international banking, Mitiku Abeshu, as a special advisor to AIB's president.

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Bangladesh and Myanmar up L/C limit

Bangladesh and Myanmar have agreed to raise the value of letters of credit (L/Cs) used in bilateral trades.

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No extradition for alleged Iranian L/C fraudsters

Two Iranians already on trial in Dubai for offences related to letter of credit (L/C) fraud will not be extradited from Dubai to their homeland.

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L/Cs help new Rwandan trade facility grow

Letters of credit (L/C) appear to have helped the Rwanda Development Bank's (RDB's) new trade finance facility take off this year.

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Bangladesh recalls L/C threats as it mulls restrictions on oil imports from Kuwait

The Bangladesh government is considering restrictions on cargoes of oil delivered on old vessels by the Kuwait Petroleum Corporation (KPCs) on environmental and safety grounds.

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Pakistan faces oil shortage as L/Cs fall due

Several letters of credit (L/C) are due to be settled over the next few days by Pakistan State Oil (PSO).

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L/C may help resolve Ugandan oil dispute

A letter of credit (L/C) may be used to help resolve a dispute between an oil company and the Ugandan government.

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Moody's mulls downgrades for L/C backed bonds

Moody's is considering downgrading its ratings on letter of credit (L/C) backed US municipal bonds.

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Algeria eases L/C requirements somewhat

Algeria has eased its requirements on importers to open letters of credit (L/Cs) on all of the goods they purchase.

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United Bank says L/Cs helped boost profits

An Ethiopian bank says letters of credit (L/Cs) and remittances have contributed substantially to increased annual profits in the 2009/10 financial year.

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L/Cs hard to come by at UAE banks

A fall in the value of letters of credit (L/Cs) opened by the UAE's banks is being seen as a sign that credit remains tight in the federation.

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Iranians face L/C fraud charges in Dubai

Two Iranian former bank officers have been accused of forging documents to obtain letters of credit (L/Cs) as they face several fraud charges in a Dubai court.

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China may abolish death penalty for L/C fraudsters

China is considering dropping the death penalty for letter of credit (L/C) frauds and several other types of financial and non-violent crimes.

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India arrests L/C fraud suspects

India's Central Bureau of Investigation (CBI) has arrested three people suspected of at least four letter of credit (L/C) frauds.

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Kenyan bank reports strong L/C business

Co-operative Bank of Kenya (CBK) has reported a 60.6 per cent increase in its profits after tax for the first six months of the year.

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Fraudsters employed L/Cs in US mortgage scams

Four men have pleaded guilty to fraud charges related to mortgage scams that employed fictitious letters of credit (L/Cs).

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South Korea mulls L/C alternatives to maintain trade with Iran

South Korea is reviewing measures that may enable it to sustain its substantial business links with Iran.

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Letter of credit sparks dispute in Canada

A letter of credit (L/C) has sparked a dispute between a contractor building a housing complex and a city council in the Canadian province of Ontario.

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Marsh establishes group to seek non-L/C collateral options for insurers

One of the world's largest insurance brokers and risk advisors, Marsh, has established a Collateral Solutions Group (CSG) to find new ways for insurers to obtain the best possible collateral terms.

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Equity Bank to tap Ugandan L/C opportunities

A fast-growing Kenyan bank has said it plans to tap Uganda's letter of credit (L/C) market as it seeks to extend its reach across the African continent.

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L/C fraudsters uncovered in India

India's Central Bureau of Investigation (CBI) has apprehended three people for defrauding the State Bank of India (SBI) of the equivalent of around US$2 million.

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Algeria may scrap controversial L/C law

Algeria is considering ditching a recent law making it compulsory for importers to use letters of credit (L/Cs).

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Forged L/C may have role in Indian chlorine gas leak

A forged letter of credit (L/C) may have helped spark a chlorine gas leak earlier this month in India.

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India's base rate mechanism could harm L/C rates

The head of India's top chamber of commerce has warned that the country's newly introduced base rate mechanism could push up the cost of letters of credit (L/Cs).

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Trade Bank of Iraq bullish after suicide bombing

The Trade Bank of Iraq (TBI), which provides the bulk of the country's letters of credit (L/Cs), has continued work uninterrupted, despite the attack by suicide bombers last month that threatened to destroy the bank.

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Few concerns about decline in South Korea's L/Cs

South Korea saw a decrease in letter of credit (L/C) arrivals during May according to in the latest set of data on the country released by the Conference Board.

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Nepal eases L/C requirements for coffee exporters

Nepal has decided that it should no longer be compulsory for coffee exporters to use letters of credit (L/Cs) every time they make a sale abroad.

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L/Cs feature in Ghanaian financial losses trial

Letters of credit (L/Cs) feature in a case in which Ghana's ex-Minister of Foreign Affairs and Regional Integration, Akwasi Osei-Adjei, is alleged to have caused financial losses to the state by importing rice from India worth over US$10 million.

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National Bank of Oman goes for Misys guarantee and L/C solution

National Bank of Oman (NBO) has opted for a Misys banking solution to handle its guarantee and letter of credit (L/C) transactions.

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Vietnam's exporters asked to check L/Cs and guarantees to avoid trade frauds

Vietnam's Ministry of Industry and Trade is urging the country's exporters to inspect trade documentation carefully if they want to steer clear of several scams apparently perpetrated by would be international trading partners.

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Indonesian lawyer accused of L/C fraud

Indonesian state prosecutors have charged a politically connected lawyer with a document fraud that allegedly used a fictitious letter of credit (L/C).

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Standard Chartered Bank adopts Straight2Bank

Standard Chartered Bank and one of Pakistan's major mobile telephony companies have signed an agreement aimed at saving processing time for letters of credit (L/Cs) and other instruments.

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Indonesia ditches L/Cs for commodities requirement

Indonesia has scrapped a proposed regulation that would have required traders to use letters of credit (L/Cs) for commodity exports.

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Reinsurers may see L/C requirements eased

Non-US reinsurers in the US may be able to reduce their financial commitment to letters of credit (L/Cs) and other forms of collateral if a recent move by insurance regulators in Florida is anything to go by.

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Sanctions on Iran hits UAE traders

Sanctions imposed on Iran's financial institutions that curtail the availability of letters of credit (L/C's) appear to be having a big effect on United Arab Emirates- (UAE-) based Iranian merchants.

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Bombers hit Iraq's leading L/C bank

Two cars exploded simultaneously on Sunday outside the Trade Bank of Iraq's (TBI's) headquarters in Baghdad on a day that saw more than two-dozen people killed by bombers in the Iraqi capital.

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Fraudulent L/Cs played role in US mortgages scam

Letters of credit (L/Cs) featured in a mortgage scam in the US in which at least three bank employees participated.

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Canada ups limits for L/Cs as collateral for reinsurers

Canada has upped the limit to which letters of credit (L/Cs) can be used as collateral by reinsurers.

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Falling L/C business contributes to Commercial Bank of Kuwait's ratings downgrade

Less letter of credit (L/C) business was a factor considered by Moody's Investors Service in its recent downgrade of the Commercial Bank of Kuwait (CBK).

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Calls for government aid to restore Pakistan Steel Mill's L/C flows

One of Pakistan's opposition parties is calling on the government to provide financial assistance to Pakistan Steel Mills (PSM).

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Bank of Punjab directors should share responsibility after L/C default

A former Bank of Punjab (BOP) official has alleged that the bank's board of directors as well as its former president should bear the responsibility for extending money to a customer that had already defaulted on an inland letter of credit (L/C) facility.

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Citibank in Bahrain includes L/Cs in new SME package

Citibank in Bahrain has launched a new suite of trade finance products and services that includes letters of credit (L/Cs).

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Concern over delays to Iran-Pakistan L/C guarantees

The Special Working Group of the Pakistan-Iran Joint Economic Commission has expressed concerns over delays to several measures that would help facilitate trade between the two countries.

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Indonesia continues to mull L/Cs for commodity exports

Indonesia is once more mulling whether it should introduce letters of credit (L/Cs) for commodity exports.

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Union Bank of India L/C fraud

India's Central Bureau of Investigation (CBI) has filed a case involving letter of credit (L/C) fraud against six people.

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L/Cs feature in US wind-farm financing

A division of Duke Energy Corporation of the US is using letters of credit (L/Cs) in financing arrangements for future wind-power projects.

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Prosecutors say ABN AMRO used L/Cs to bypass US sanctions

Prosecutors in the US have accused ABN Amro, now substantially part of Royal Bank of Scotland (RBS), of stripping information from letters of credit (L/Cs) and other financial instruments in order to bypass US sanctions.

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Pakistan calls for L/Cs to stem smuggling under Afghanistan's Transit Trade Agreement

Pakistan is calling for the use of letters of credit (L/Cs) to curb goods being smuggled into the country under the Transit Trade Agreement (TTA) signed last year by Pakistan and Afghanistan.

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Europe's debt crisis could stem China's L/C flows

Europe's debt crisis could make it more difficult for Chinese exporters to obtain letters of credit (L/Cs) to finance their exports according to a bank economist.

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World Bank guarantees for Brazil's investments in Africa

Brazilian companies may soon benefit from World Bank guarantees for investments in Africa.

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Dubai court hears US$23 million L/C fraud case

A Dubai court is in the process of hearing a multi-million US dollar letter of credit (L/C) fraud case.

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Ghanaian government fails to release refinery's L/C flows

Ghana's troubled Tema Oil Refinery (TOR) is still finding it difficult to obtain the letters of credit (L/Cs) it needs to purchase crude oil.

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Malaysian bank pilots Chinese currency L/C and bank guarantee business

Malaysia's AmBank has unveiled its renminbi trade settlement pilot programme (RTSPP) facility that will enable the bank's customers to settle their cross-border trade transactions with certain entities on China's mainland in its local currency.

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Easier L/Cs for Sri Lanka

Letters of credit (L/Cs) in Sri Lanka may become easier to access as the country sets up a new export-import bank (EXIM Bank).

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Saudi Arabia unearths bank guarantee abuse

Saudi Arabia's Ministry of Finance has instructed officials in other ministries to authenticate bank guarantees submitted by private companies.

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Bahrain's ABC reports L/C income boost as regional demand improves

Letters of credit (L/Cs) have helped Arab Banking Corporation (ABC) post a consolidated group net profit of US$41 million for the first three months of this year.

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Philippines relaxes requirement for foreign L/C license

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

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Nigerian leader urges action on financial crime

Nigeria's acting president has called on parliament to press ahead with legislation to improve the country's reputation in the global financial community.

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India sees L/C business returning

Letter of credit (L/C) business is picking up as the availability of trade finance has almost returned to normal according to a senior banker in India.

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Anti-corruption lawmaker accused of forging documents to obtain L/C

An Indonesian lawmaker who helped start an inquiry into the 2008 bailout of Bank Century has been accused of using forged documents to obtain letters of credit (L/Cs) from the same bank.

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Standard Chartered sees factoring comeback

Standard Chartered is touting its factoring services as an alternative form of trade finance for customers that routinely use letters of credit (L/Cs).

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National Bank of Egypt to support Ethiopian L/Cs

The National Bank of Egypt (NBE) has signed a memorandum of understanding (MoU) with six Ethiopian commercial banks in a move intended to make letters of credit (L/Cs) more available to Egyptian investors in Ethiopia.

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Three held on alleged L/C frauds

India's Central Bureau of Investigation (CBI) has arrested the chairman and two directors of a listed company in the Indian city of Ahmedabad for alleged frauds incorporating letters of credit (L/Cs).

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South Korea establishes electronic export bill purchase system

South Korea has established what it claims to be the world's first electronic system for the negotiation of export bills.

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Saudi Arabia confirms L/C upturn

Data from Saudi Arabia is confirming an upturn in letter of credit (L/C) business in the Kingdom.

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Trade Bank of Iraq doubles L/C limit

The Trade Bank of Iraq (TBI) has doubled the maximum value of individual letters of credit (L/Cs) it allocates to the country's private banking sector.

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Six new participants in IADB's trade finance programme

The Inter-American Development Bank (IADB) has added six financial institutions to its trade finance facilitation programme (TFFP).

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Insurance trusts offer L/C alternative

Changing attitudes to collateral requirements in the insurance industry, coupled with wider commercial trends, are apparently persuading Bank of New York Mellon (BNYM) to recommend insurance trusts as an alternative type of collateral to letters of credit (L/Cs).

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Easier L/C financing for Filipino micro and small enterprises

The Development Bank of the Philippines (DBP) is to introduce an enhanced lending programme that aims to make it easier for the country's micro- and small enterprises to arrange letter of credit (L/C) financing.

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Former bankers accused in US L/C frauds

Two former bank vice-presidents, several Missouri businessmen and a former branch manager of a US Small Business Administration's office face federal charges in connection with frauds involving letters of credit (L/Cs).

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Cotton traders seek amicable settlements of L/C disputes

A businessman has called for letter of credit (L/C) disputes between Indian and Pakistani cotton traders to be resolved amicably.

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US miners can keep using L/Cs for environmental contingencies

Letters of credit (L/Cs) will remain an option for mining companies required to guarantee that they will carry out environmental remediation work associated with their activities.

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Ethiopian bankers face L/C scam investigation

The board of an Ethiopian bank has suspended a vice president for an alleged scam that involved bank staff appropriating money from customers opening letters of credit (L/Cs) to obtain foreign currency.

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US municipal L/Cs still hard to come by

Letters of credit (L/Cs) to secure loans for municipal projects in the US are still hard to come by according to officials in Milwaukee.

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Indonesia investigates more alleged L/C frauds

A politically connected lawyer and his business partner have been reported to the Indonesian authorities for alleged money laundering activities that included the use of a fictitious letter of credit (L/C).

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Court to hear why British government curtailed Iranian bank's L/C business

A privately owned Iranian bank accused of providing financial services to companies involved in Iran's nuclear and ballistic missile programmes has won a landmark victory in a British High Court.

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Lack of L/Cs forces liquidation

British Seafood has gone into administration after banks withdrew trade credit, dealing a blow to private equity group 3i, which bought a 28.5 per cent stake in the company two years ago.

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Philippines authorises more L/C issuers

Co-operative banks in the Philippines have been authorised to open more branches and offer more services, including letters of credit (L/Cs).

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Development Bank of Ethiopia borrows to maintain L/C access

The Development Bank of Ethiopia (DBE) is to take out a loan primarily for the purposes of continuing to make letters of credit (L/Cs) available for Ethiopian traders.

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Obama's banking sector overhaul may shape L/C market

Plans recently announced by the administration of President Barack Obama to remove speculative commodity-trading units from US banks could impact on the letter of credit (L/C) market.

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Bangladesh sees massive surge in L/C business

Bangladesh has reported a massive surge in letter of credit (L/C) openings.

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Heleba Group updates trade finance systems

Landesbank Hessen-Thüringen (Helaba Group) is updating its trade finance processes by introducing new software that will include new letter of credit (L/C) solutions.

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Survey sees supply chain L/C decline slowing

The decline in letter of credit (L/C) usage within supply chains is slowing according to a recent survey.

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London insurer hit by L/C failures

A London insurer says it has had a run of claims on letters of credit (L/Cs) it has insured.

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Lawyer jailed for L/C cons

A top London lawyer who conned millions from her bank bosses to help an ailing Indonesian airline has been jailed for five years.

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Maldives cabinet discusses L/C difficulties

The cabinet of the Maldives has discussed difficulties facing businesses attempting to obtain letters of credit (L/Cs) from local banks.

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SWIFT sees upwards L/C trend

The value of letters of credit (L/Cs) in the marketplace has been steadily increasing for nearly a year according to SWIFT

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Two more face trial in Bank Century case

The Indonesian authorities are preparing to prosecute two foreign former owners of a bank who are accused of systematically looting a bank soon after it was rescued by the state.

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Beijing prompts new L/C shortage

Reports are emerging that letters of credit (L/Cs) are once more in short supply in China.

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L/Cs squeeze Central Bank of Ethiopa's liquidity

The Central Bank of Ethiopia (CBE) is facing a squeeze on its liquidity, in part due to a 50 per cent increase in its letter of credit (L/C) commitments, according to a federal official.

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Obama administration pressured French L/C issuers

It has emerged that the administration of US President Barak Obama pressured two French banks into not writing letter of credit (L/C) business with one of India's largest firms because of its dealings with Iran.

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Limited impact for Algeria's import L/C policy

Algeria's insistence that importers use letters of credit (L/Cs) to purchase goods seems to have had only a limited impact, according to official data.

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L/Cs needed to boost trade across divided Kashmir

Traders in an Indian-controlled region of Kashmir are calling on the state government there to bring in measures that will make the much-hyped Cross Line of Control Trade (CLOCT) initiative work in practice.

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Pension benefits jeopardised by lack of L/Cs

Some former senior newspaper editors at a troubled Canadian media group stand to lose as much as C$14.4 million in pension benefits that are not backed by letters of credit (L/Cs).

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Fake L/Cs bring heavier sentence

An Indonesian former bank owner has been handed down a heavier jail sentence because, amongst other things, he issued millions of US dollars of fake letters of credit (L/Cs).

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L/Cs would help Jordanian-Iraqi trade

An Amman-based business leader has said Jordan should recognise Iraqi letters of credit (L/Cs) to complement other measures to boost trade between the two countries.

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Swiss Re's billion dollar L/C

Swiss Re has announced that it has entered into a US$1 billion long-term letter of credit (L/C) facility with JP Morgan to support its US life business.

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IPO for Thai L/C service provider

A Thai factoring and financing company that also services letters of credit (L/Cs), has said it plans to raise at least 200 million baht (US$6 million) in an initial public offering (IPO) later this year.

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False documents for L/Cs in Ghanaian fraud

A Ghanaian businesswoman has been remanded in police custody for allegedly using false documents to secure letters of credit (L/Cs) in a US$370,000 swindle.

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Uganda sees L/C awareness rising

Uganda's trading community is increasingly seeing letters of credit (L/Cs) as a useful method of financing, according to a local consultant.

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Pakistan and Iran mull banks to facilitate L/C business

Pakistan and Iran are considering establishing banks in each other's country in order to improve access to letters of credit (L/Cs).

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Would be arms smuggler refused L/Cs

An Iranian man attempted to use a letter of credit (L/C) in his efforts to ship sensitive military technology to Iran.

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Dubai L/C concerns

There are signs in the UAE that concerns over the stability of federation's banks and businesses are causing a flight from letter of credit (L/C) business.

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Irregular L/Cs overlooked by Bank Indonesia

Indonesia's Corruption Eradication Commission (CEC) has criticised Bank Indonesia for ignoring letter of credit (L/C) irregularities at Bank Century, which had to be bailed out earlier this year.

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Bangladesh and Myanmar mull L/C accord again

Two days of talks headed by the foreign secretaries of Bangladesh and Myanmar are scheduled to prioritise the establishment of direct letters of credit (L/Cs) to facilitate trade between the two countries.

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LA Opera's L/C is saved

The Los Angeles County Board of Supervisors has taken the unusual step of underwriting the Los Angeles Opera so that it can extend a much needed letter of credit (L/C) as part of its refinancing efforts.

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Wind developers offer L/Cs to guarantee power promises

Developers of wind power projects in the so-called Panhandle in northern Texas are turning to letters of credit (L/Cs) to help them start new projects.

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Arab Bank opts for Credoc software

Arab Bank (Switzerland) has chosen the web-based version of Credoc trade finance software according to its developers, Micro Informatique & Technologies (MIT).

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Cheap L/Cs for alternative energy projects

Companies in Pakistan considering renewable power projects of up to 10 megawatts can now get discounted bank financing for letters of credit (L/Cs), according to the central bank

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Contractors demanding L/Cs from Dubai's developers

Contractors contemplating taking on work in Dubai are demanding letters of credit (L/Cs) from developers before they start work.

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J P Morgan expands trade finance cooperation with ADB

J P Morgan has signed a new Credit Guarantee Agreement with the Asian Development Bank (ADB).

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Irregular L/Cs feature in troubled Indonesian banks

Indonesia's banking watchdog has found irregularities in the letter of credit (L/C) business of the troubled Indonesian bank, Bank Century.

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Indonesian banks line up for ADB L/C support

Two more Indonesian banks have signed up to the Asian Development Bank's (ADB) Trade Finance Facilitation Programme (TFFP).

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Standby L/Cs not enough for Kenyan wind farm

Standby letters of credit (L/Cs) alone may be insufficient security for would be financiers of Kenya's largest green field wind power scheme.

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Pakistan's L/Cs too expensive

A business leader in Karachi is calling on Pakistan's government to take action on the cost of commercial banks' letters of credit (L/Cs), which he feels are too high.

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US EximBank increases L/C insurance ceilings

The Export-Import Bank of the United States (US EximBank) has raised the upper limit of its small business multi-buyer export credit insurance policy to allow more small businesses to export their goods and services more easily.

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Sentences for L/C fraudsters

A US court has sentenced two men for their roles in a multimillion-dollar investment fraud that involved bogus letters of credit (L/Cs).

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L/Cs for UAE SMEs at Citibank

Letters of credit (L/Cs) feature in one of two new services to be launched by Citibank in the UAE.

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UK launches L/C guarantee scheme

The UK government's Export Credit Guarantee Department (ECGD) has finally launched its letter of credit (L/C) guarantee scheme.

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Saudi L/Cs indicate stalled credit growth

While many countries are seeing some signs of economic recovery, a decline in letters of credit (L/Cs) settled and bills received by Saudi banks is indicating that confidence has yet to return to the largest Gulf state.

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Indonesia postpones L/C requirement for commodities sales

The Indonesian government has postponed plans to introduce a requirement stipulating that commodities sellers must use letters of credit (L/Cs) for transactions worth more than US$1 million.

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L/Cs could help advance Indo-Pakistan peace process

Letters of credit (L/Cs) may help advance the peace process between India and Pakistan by easing relations between people on either side of the Line of Control - the de facto border created by the military control line between the Indian and Pakistani controlled parts of the former state of Jammu and Kashmir.

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Noble Group goes for Bolero's multi-bank platform

Global commodities trader, Noble Group, has signed an agreement to implement Bolero's multi-bank trade finance service on a global basis in support of both letters of credit (L/Cs) and guarantees.

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L/Cs, derivatives and guarantees way down in India

Off-balance-sheet (OBS) exposure of India's banks -including letters of credit (L/Cs), derivatives and guarantees - declined by a massive 26.4 per cent in the year to March 2009 according to figures recently released by the Reserve Bank of India (RBI).

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British lawyer faces jail for L/C frauds

A British lawyer faces jail having been found guilty of letter of credit (L/C) frauds amounting to nearly £7 million.

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Wind turbine manufacturer opts for @globaltrade

German wind turbine manufacturer, Nordex AG, has adopted the @GlobalTrade Guarantee Issuance System to administer its guarantee business and its communications with banks.

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US$100 million L/C helps land UK Treasury in court

The UK's state-owned Royal Bank of Scotland (RBS) has been extending credit - including a US$100 million letter of credit (L/C) - to controversial mining firms.

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Tough credit terms stem L/C supply to US municipal authorities

Tough credit terms are continuing to adversely affect the ability of municipal authorities in the US to raise letters of credit (L/Cs).

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British L/C support delayed

The British scheme for its export credit agency (ECA) to guarantee letters of credit (L/Cs) that have been in such short supply during the credit crunch has been delayed.The delay comes as the Export Credit Guarantee Department (ECGD) demonstrates that it is moving firmly into areas previously occupied by commercial lenders who have been unable to provide finance as a result of the credit crunch.

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Development agency behind L/C push in Botswana

Botswana's Citizen Entrepreneurial Development Agency (CEDA) is pushing a raft of initiatives and policy changes aimed at providing more services to the small-, micro- and medium-sized enterprise (SME) market.

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Bangladesh and Myanmar mull L/C pact

Bangladesh and Myanmar have entered into talks to encourage bilateral trade by establishing direct banking arrangements between the two countries.

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HSBC recommends L/Cs for Singapore's SMEs

Global banking giant HSBC is suggesting that small- and medium-sized enterprises (SMEs) in Singapore consider using letters of credit (L/Cs) as they prepare for what may be an upturn in the global economy.

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Bankers in India report more L/C interest

Bankers in India are reporting increased interest in letters of credit (L/Cs) as the country's exporters adjust to new global market conditions.

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US banker suggests traders shift to transferable L/Cs

A US-based banker is suggesting that with liquidity still tight in the banking sector, importers could consider turning to transferable letters of credit (L/Cs) as an alternative form of financing.

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Tax delays in Pakistan put L/Cs out of reach

Delays in issuing Pakistan's residents with National Tax Numbers (NTNs) is preventing international traders from accessing letters of credit (L/Cs) and other trade services.

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India's largest bank to provide L/Cs in Dubai

State Bank of India (SBI) has announced that it will offer a range of banking services, including letters of credit (L/Cs), from its base in the Dubai International Financial Centre (DIFC).

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Kuwaiti bank files US$125 million suit alleging L/C fraud

Al Ahli Bank of Kuwait (ABK) has filed a complaint against Saudi billionaire Maan Al Sanea and Saad Trading Contracting and Financial Services for alleged breach of contract and fraud.

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L/C features in Nepal Police procurement irregularities

A letter of credit (L/C) opened by procurement officers at Nepal Police before they had signed a contract with the supplier has featured in a case in which nine senior police personnel have been investigated.

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Reserve Bank of India concerns about L/C fraud

The Reserve Bank of India (RBI) is concerned that letter of credit (L/C) fraud remains a problem in the country's banking system.

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Renminbi settlements for Malaysia's OCBC Bank

OCBC Bank of Malaysia says it will soon be offering corporate customers the opportunity to settle trade transactions, including letters of credit (L/Cs) and perform telegraphic transfers, in renminbi.

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Ghana moves to revive L/Cs for oil imports

The government of Ghana has appointed a transaction adviser to help raise funds to pay half of the US$600 million owed by the Tema Oil Refinery (TOR) to Ghana Commercial Bank (GCB).

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Portuguese bank reports L/C surge

A bank based in Portugal with interests in Lusophone countries worldwide has reported dynamic growth in its letter of credit (L/C) business.

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Malaysian banker sees more L/C appeal

Letters of credit (L/Cs) are becoming an increasingly popular choice for international traders according to a Malaysian banker.

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UAE firms opt to manage L/Cs on multi-bank platform.

Two associated UAE-based firms have opted for a web-based multi-bank platform that aims to streamline the management of their letter of credit (L/C) and other trade finance functions.

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Shamil Bank reports big increase in L/C earnings against falling profits

A Bahrain-based Islamic commercial bank has reported a sharp increase in fees and commission income from letters of credit (L/Cs) over the course of this year.

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Stanbic Bank faces claim in Uganda over standby L/C usage

Stanbic Bank has been asked by a court in Uganda to respond to a claim by Pearl Oils Uganda Ltd that the bank unlawfully debited 515 million Ugandan shillings (USh515 million - around US$250,000) from the company's account.

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Indonesia postpones plans to force L/Cs for commodity exports

Indonesia has postponed a decision on plans to force Indonesian exporters to use letters of credit (L/Cs) in large overseas commodity sales.

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US Senate to mull L/Cs for clean energy

Letters of credit (L/Cs) for firms deploying clean energy technologies may be made available if the US Senate approves measures to comprehensively overhaul the country's energy system.

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Captive insurers turn from L/Cs to trusts for collateral

Captive insurers - insurance companies wholly owned by a company not involved in the insurance sector that provide cover for risks of the group to which it belongs - are turning away from letters of credit (L/Cs) as a form of collateral, according to speakers at a recent captive insurance conference.

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Bangladesh reports pre-Ramadan L/C boost

Figures from Bangladesh Bank (BB) have revealed a sharp rise in letter of credit (L/C) openings in the run-up to the Muslim holy month of Ramadan.

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Nigeria makes L/Cs for oil marketers harder to get

The Central Bank of Nigeria (CBN) has ordered tighter restrictions on the country's commercial banks, making it more difficult for them to issue letters of credit (L/Cs) to oil marketers.

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Britain's export credit agency presses ahead with L/C scheme

The British government is to go ahead with a new insurance scheme to confirm letters of credit (L/Cs) for exporters selling into developing countries.

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Ugandans demand more L/Cs from local sources

Demand from local sources for letters of credit (L/Cs), as well as other types of trade and corporate finance is on the increase in Uganda, according to the central bank.

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Citi's boost for municipal L/Cs

Citigroup has said it is going ahead with two new lending initiatives worth US$6 billion supported by US government bailout funds.

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L/Cs mandatory for Algerian importers

The Algerian government has enacted controversial amendments to the country's finance law so that it now requires importers to use letters of credit (L/Cs).

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L/C availability is improving in India

The availability of letters of credit (L/C) in India is improving according to local media.

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Indian software company challenges Deutsche Bank over false L/C claims

An Indian software consulting, outsourcing and business solutions company has filed a civil suit against Deutsche Bank in a Bangalore court in a dispute in which the bank has accused the company of providing false letters of credit (L/Cs).

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Indian MPs call for probe into L/C irregularities in rice trades

Indian MPs are calling for an investigation into suspected letter of credit (L/C) irregularities caused by rice traders seeking to bypass restrictions on rice exports to certain locations.

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Saudi Arabia reports sharp drop in L/Cs

The value of import letters if credit (L/Cs) opened by Saudi Arabian private sector buyers in the first half of 2009 fell by around one third compared with last year.

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Reinsurance intermediary touts L/C alternative

Aon Benfield, a reinsurance intermediary and capital advisor, is marketing its CapTivate reinsurance product, which it claims provides captive insurance companies with a less expensive form of collateral than letters of credit (L/Cs).

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Fewer L/Cs for US municipal bonds

Fewer letters of credit (L/Cs) are being used to back new US municipal bonds.

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Tougher L/C terms in US bond market

The terms of letters of credit (L/Cs) arranged to underpin variable rate bonds in the US are becoming tighter.

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Exporters in the Philippines can no longer rely on L/Cs

Tight credit conditions are impacting negatively on exporters in the Philippines, who, prior to the global financial crisis, relied on letters of credit (L/Cs), according to a recent World Bank report.

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Bangladesh sees massive drop in L/Cs for investment

A massive drop in the opening of letters of credit (L/Cs) for some imports into Bangladesh is an indication of a lack of investment in the productive economy, according to Bangladesh Bank.

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More L/Cs this year from Trade Bank of Iraq

The Trade Bank of Iraq (TBI) expects to issue letters of credit (L/Cs) worth around US$10 billion this year.

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L/Cs feature in China's yuan-denominated trade services

Letters of credit (L/Cs) feature in a raft of yuan-denominated trade- settlement services launched this month that aim to facilitate trade for China's manufacturers and traders.

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HSBC presses case for L/Cs for Indian SMEs

Indian small and medium enterprises (SMEs) are being courted by HSBC as it presses the case for using letters of credit (L/Cs) and other risk management products in today's economic climate.

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Exporters struggle as L/C costs stay high

The head of the World Trade Organisation (WTO) has said exporters are still struggling to secure the credit they need to finance international trade.

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India supports L/Cs for the Maldives

The government of the Maldives has negotiated an agreement with India so that importers of basic food items and other essential commodities will be able to obtain letters of credit (L/Cs) denominated in US dollars.

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Africa to confirm its own L/Cs

Letters of credit (L/Cs) may soon become available within the Common Market for Eastern and Southern Africa (COMESA) following a series of groundbreaking resolutions by the grouping of African nations.

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Thrift banks take up L/C option

Thrift banks in the Philippines are taking up a programme introduced by the country's central bank to make letters of credit (L/Cs) more available.

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L/Cs help boost DBS Bank India's profits

A bank that serves businesses across India has reported nearly a fourfold increase in net profits, substantially helped by a strong showing in its non-interest income.

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IFC support for Exim Bank India's trade finance programme

The International Finance Corporation (IFC) and the Bank of Tokyo-Mitsubishi have agreed to jointly extend a six-year US$60-million line of credit to Export-Import Bank of India (Exim Bank India).

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Middle Eastern banker reports strong L/C comeback

A senior Dubai banker is reporting a strong comeback for letters of credit (L/Cs) and other structured trade finance solutions.

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Russian banks say no L/Cs for Iran's nuclear plant

Russia's banks are refusing to deal with letters of credit (L/Cs) needed by Iran to pay the Russian company scheduled to commission the Islamic republic's Bushehr nuclear power station.

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Ethiopians' long wait for L/Cs

Ethiopians are waiting months to open letters of credit (L/Cs) as the country works to boost its foreign exchange reserves.

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Innovative L/C use in power financing for Pakistan

A letter of credit (L/C) made possible by the International Finance Corporation (IFC) features in an innovative financing for a new power generation plant in Pakistan.

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China L/C flow eases

Letters of credit (L/Cs) are flowing more freely now in China, according to a Chinese business leader.

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Glencore chases VALCO for allegedly not raising L/Cs

One of the world's largest commodity traders is seeking damages of up to US$6.9 million from Ghana's Volta Aluminium Company (VALCO) for breach of contract.

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Malaysian bank sets up L/C training academy

One of the largest banks in Singapore and Malaysia has set up a trade finance academy with the aim of helping its customers' staff better utilise the range of trade finance options available.

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Slight L/C increase amongst UAE banks

Banks in the UAE wrote more letter of credit (L/C) business in April than they did in the previous three months according to a report recently released by the UAE Central Bank.

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Vietnamese banks sign up to L/C facilitation programme

The Asian Development Bank (ADB) has signed financing agreements with eight Vietnamese banks aimed at making credit more available for local traders.

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Tougher L/C conditions for Nigerian businesses

Nigerian businesses are reporting that it has become tougher for them to obtain letters of credit (L/Cs) as the country's banks adopt a more cautious lending approach.

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Trend towards L/Cs in Asia

Asian exporters are increasingly asking for letters of credit (L/Cs) to guard against the increasing risk of payment defaults caused by the global economic downturn, according to a report in an Indonesian daily paper.

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US to offer L/Cs for low emission projects

Letters of credit (L/Cs) will soon be available in the US to help finance low emission projects.

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Dry bulk carrier says L/Cs help precipitate downturn

The managing director of Thailand's largest dry bulk carrier has said that recent letter of credit (L/C) shortages have contributed to trading conditions under which Thoresen Thai Agencies Plc (TTA) has seen its first quarter profits all but wiped out.

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Indonesia shelves plans to force L/Cs for large exports

Plans to force Indonesian exporters to use letters of credit (L/Cs) in large overseas sales have been shelved.

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New Pakistani banks in Asian Development Bank trade programme

The Asian Development Bank (ADB) is this month signing agreements with nine Pakistani banks that are joining the ADB's Trade Finance Facilitation Programme (TFFP).

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Saudi bank predicts L/C increase in 2009

Saudi Arabia's largest bank is predicting a substantial increase in letter of credit (L/C) business next year as the bank gears up for what it sees as a new era of growth.

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Indian electricity tribunal restores confidence in L/Cs for power producers

India's Appellate Tribunal for Electricity has ruled that power supplies can be rationed to state electricity boards that fail to provide letters of credit (L/Cs) to power generating companies.

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International trade credit still tight says Federal Reserve

An April survey by the US Federal Reserve has revealed that most banks have tightened the conditions under which they will provide international trade finance, including letters of credit (L/Cs).

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L/Cs may not hold up for US landlords

Letters of credit (L/Cs) provided by tenants to US landlords to guarantee that rental payments will be made may not hold up if the tenant goes into bankruptcy, according to a partner at the law firm, Day Pitney.

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L/Cs help Trade Bank of Iraq achieve record profits

Trade Bank of Iraq (TBI) has reported record profits for 2008, with both net profits and operating profits substantially up on the previous year.

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Kazakh bank plans to restructure debt to meet L/C obligations

Kazakhstan's Alliance bank says it plans to restructure its debt in order to meet its letter of credit (L/C) and other short-term liabilities.

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Demand for L/Cs for US municipal debt falls away

The amount of new US municipal bonds backed by a letter of credit (L/C) fell away during the first quarter of this year.

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Britain mulls L/Cs guarantees to support exports

Britain's Department for Business is considering using a £10 billion working capital guarantee fund to make letters of credit (L/Cs) more available for overseas companies wanting to buy goods and services from British companies.

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Former American footballer used L/Cs in investment scam

A former American footballer who played with the New York Giants in the 1960s has pleaded guilty to charges arising out of a scheme that used bogus letters of credit (L/Cs) and other concocted bank instruments in an investment scam.

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Venezuelans report L/C shortage

Venezuelan banks are not making letters of credit (L/Cs) available to importers according to local business leaders.

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Fall in L/Cs prompts Bangladesh Bank intervention

The central bank of Bangladesh is buying US dollars from the country's commercial banks in order to stabilise the inter-bank foreign exchange market.

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Hinduja chooses Credoc trade finance software

Hinduja Bank (Switzerland) Ltd has chosen Credoc software to support its letter of credit (L/C) and wider trade finance operations.

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US state body may not honour standby L/Cs

The US' Federal Deposit Insurance Corporation (FDIC) has notified some commercial landlords that they will no longer honour standby letters of credit (L/Cs) issued by banks currently in receivership by the FDIC.

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Chicago may pocket US$126 million L/C

The city of Chicago may draw on a multi billion US dollar letter of credit (L/C) if the consortium of investors awarded the lease of the city's Midway Airport fails to raise the finance it needs.

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G20 decisions good news for L/Cs

A boost to letter of credit (L/C) business can be anticipated after the G20 leaders in London announced a multi-billion US dollar package to help revive international trade financing.

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Easy L/Cs for China's solar manufacturers

Letters of credit (L/Cs) are being made widely available to Chinese companies making solar energy companies.

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Return to L/Cs observed in Europe

A board member of the European Central Bank (ECB) says he is observing a move back towards traditional trade finance products such as letters of credit (L/Cs).

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L/C fraudster apprehended in Gujarat

An alleged letter of credit (L/C) fraudster has been apprehended in the Indian state of Gujarat.

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Executives says Malaysian L/Cs are available

A senior executive for the global electronics giant, Panasonic, says letters of credit (L/C) are available in Malaysia due to local banks' good liquidity.

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Report says Canada's development bodies should issue L/Cs

A recently published report suggests that two of Canada's state development vehicles should start to issue letters of credit (L/Cs) to help Canadian firms through the credit crunch. The CEO of Allen-Vanguard Corporation, David Luxton, wrote the report.

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HSBC Australia reports trade finance growth on L/C demand

HSBC Australia says its clients are more cautious in terms of credit risk than they used to be.

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UAE bank launches back-to-back L/C facility

Abu Dhabi Commercial Bank (ADCB) has announced the launch of aback-to-back letter of credit (L/C) facility.

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More L/Cs anticipated in Dubai's property sector

Letters of credit (L/Cs) may well feature more in deals between property developers and contractors in Dubai, where the property boom that has witnessed surging real estate prices over recent years has ended.

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Bank of China features L/Cs in credit crunch counter attack

The Bank of China (BOC) has launched a high profile campaign trailing a variety of products it is offering business customers to help them counter some of the worst impacts of the credit crunch.

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Indonesia delays L/C regulations

The Indonesian government is to delay until 1 April the implementation of a new regulation that requires the country's miners to obtain letters of credit (L/Cs) from local banks for exports valued at US$1 million or more.

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Saudi L/Cs start to slide

Demand for letters of credit (L/Cs) in Saudi Arabia has started to slow down as the domestic economy responds to uncertainty in global financial markets.

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L/Cs to help anticipated increase in Indian tea exports

Tea exports from India are expected to increase this financial year, partially helped by the State Bank of India (SBI) allowing letters of credit (L/Cs) for sales to Iran.

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Iraq prefers L/Cs for power projects

Iraq plans to issue letters of credit (L/Cs) to partially finance the costs of two giant electricity contracts.

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India's Corporation Bank opens in Hong Kong

Mangalore-based Corporation Bank has opened a local representative office in Hong Kong to boost the Indian bank's business with commercial partners in the former British colony.

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Indian jewellers want longer L/C terms

India's gem and jewellery industry is pressing for more time to settle letters of credit (L/Cs).

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US federal L/Cs sought to shore up municipal bonds

The US' Securities Industry and Financial Markets Association (SWIFMA) is pressing Washington to provide letters of credit (L/Cs) or standby bond purchase agreements to shore up the troubled municipal and auction-rate bond markets.

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Arabian Gulf ports money laundering warning

Ports in the Arabian Gulf are being used for trade-based money laundering activities that can incorporate fraudulent letters of credit (L/Cs), according to experts speaking at a recent seminar in Manama, Bahrain.

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L/C shortage impacts on road haulage sector

Road haulage companies in the US are reporting big increases in letter of credit (L/C) charges as they consider consolidation or even liquidation in the current economic downturn.

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No letter of credit renewal means jail for singer's trustee

A former trustee of the late singer James Brown will spend the next six months in jail for not paying more than US$400,000 as ordered by a court in 2007.

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Bank officer amongst L/C fraudsters sentenced

An Indian court has sentenced a bank officer along with two business people for their part in a letter of credit (L/C) fraud.

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Florida hurricane fund explores L/C option

Florida's insurance commissioner is lobbying for a federal letter of credit (L/C) to make sure that insurers would be able to pay all claims quickly if a severe hurricane hits the state.

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Baltic Dry Index shows signs of recovery

After months in the doldrums, the Baltic Dry Index (BDI) is showing signs of recovery.

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Toy suppliers say Li & Fung failed to honour L/Cs

More than 10 Hong Kong based toy suppliers plan to take export trader and agent Li & Fung to court because they say it failed to honour letters of credit (L/Cs).

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Iraq ups private banks' L/Cs to US$4 million

The Central Bank of Iraq says the country's private banks will soon be able to handle international payments and foreign currency letters of credit (L/Cs) worth up to US$4 million each.

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Companies shift from L/Cs back to surety bonds

The shortage of letters of credit (L/Cs) has prompted some larger companies with healthy credit ratings to turn away from L/Cs to surety bonds.

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L/Cs feature in Indonesian fighter jet financing

Letters of credit (L/Cs) are to feature in a financing package allowing Indonesia to buy fighter jets from Russia.

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Myanmar exports to India to bypass Singapore L/C requirement

Beans and pulses from Myanmar exported to India will no longer have to go through Singapore dealers to settle letters of credit (L/Cs) now that the two countries have made arrangements for transactions to be made in euros or Singapore dollars.

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L/C alternative reports 31 per cent growth

TradeCard, the electronic trading platform that reckons to provide an alternative to letters of credit (L/Cs) in trade finance, has reported 31 per cent revenue growth in 2008.

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Value of L/Cs for US municipal bonds triples

The value of letters of credit (L/Cs) used by US municipal bond issuers tripled last year.

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JPMorgan sees L/C resurgence

JPMorgan says it is seeing a resurgence in the use of letters of credit (L/Cs) in international trade, even though it concedes that L/Cs remain harder to come by than before.

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US power company questions L/C safety

A US power company has told an official hearing that it had to question whether it should reject letters of credit (L/Cs) from banks that appeared to be troubled as a result of the global financial crisis.

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Some Indonesian commodity exporters will have to use L/Cs

Some of Indonesia's raw commodity exporters will soon have to use letters of credit (L/Cs) in export transactions in a move the government says will allow it to better monitor export payments and boost the country's foreign exchange reserves.

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Bangladesh reports 30 per cent drop in import L/Cs

The value of import letters of credit (L/Cs) in Bangladesh in December 2008 was 30 per cent down compared with the same month a year earlier according to central bank statistics.

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L/C famine may be easing

The widely reported letter of credit (L/C) shortage may be easing according to a report from Australia.

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BCP Dubai adopts Credoc L/C software

Switzerland's Banque de Commerce & de Placements (BCP) in Dubai has gone live with the web-based version of Credoc trade finance software according to its developers, Micro Informatique & Technologies (MIT).

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Hong Kong moves to restore export L/C flows

The Hong Kong government says it will introduce a range of measures to help local small and medium-sized enterprises (SMEs) beat the credit crunch.

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Swiss Re says US1.5 billion L/C will help it seize new opportunities

Swiss Re says it has secured a long-term US$1.5 billion letter of credit (L/C) facility with JP Morgan.

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Turkish minister slams banks for L/C shortage

Turkey's State Minister Kürsad Tüzmen says a shortage of letters of credit (L/Cs) is jeopardising billions of US dollars of Turkish exports.

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Standard and Poor's downgrades major L/C providers

Standard & Poor's has downgraded 11 major US and European banks as they strive to do business in a market where credit is tight.

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New York front company may have funded sanctioned Iranian L/C provider

The US authorities have moved to seize the US assets of what they allege is a front company for the Iranian state-owned Bank Melli.

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India's pharmaceutical exporters hit by lack of L/Cs

The credit shortage is making it difficult for India's pharmaceutical exporters to obtain the letters of credit (L/Cs) they need to sustain one of the country's most buoyant industries.

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Chief financial officers report greater demand for L/Cs

For a second year running, letters of credit (L/Cs) rank second in the list of financial products and services most used by US-based chief financial officers (CFOs) in US manufacturing firms, according to a recent survey.

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Jail for serial L/C fraudsters

A Hong Kong court has jailed two men for up to 55 months for their roles in a HK$260 million letter of credit (L/C) fraud based on non-existent commercial transactions.

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New IT centre to improve Qatar Islamic Bank's L/C management

Qatar Islamic Bank headquarters is now operating a state of the art IT centre, fully equipped as a stand-alone suite that the bank says is set to streamline its management of letters of credit (L/Cs) as a well as a range of other bank services.

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Mumbai atrocity: no impact on Indo-Pakistan L/C business so far

Relations between Indian and Pakistani business people may deteriorate depending on the level of involvement Pakistan had in the attacks on multiple sites in Mumbai that left at least 188 people dead.

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Lack of L/Cs adds to Chinese SMEs' woes

A lack of letters of credit (L/Cs) in recent weeks has added to a catalogue of problems already experienced in 2008 by China's small- and medium-sized enterprise (SMEs) sector.

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US Ex-Im Bank extends L/C offering to ease credit crunch

The Export-Import Bank of the United States (Ex-Im Bank) says it has enhanced several of its trade finance products to help counter tightening credit conditions and the lack of export finance.

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Prospects for L/Cs improved by the credit crunch?

Amidst generally gloomy news about letters of credit (L/Cs) - that are by most reports becoming harder to obtain by buyers, sellers and shippers alike - a sign has emerged indicating perhaps brighter prospects ahead for the documentary credit.

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Merchant convicted in HK260 million L/C fraud

A merchant charged by Hong Kong's Independent Commission Against Corruption has been convicted for his role in a HK$260 million letter of credit (L/C) fraud.

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Standard Chartered scores top Asian L/C rankings

For the second year running, SWIFT has ranked Standard Chartered Bank number one in terms trade transaction volumes in Hong Kong, Singapore and the UAE.

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Strengthening US dollar exacerbates L/C famine

One product of banks worldwide deciding to stop lending to each other was that they could no longer be sure that their correspondent bank would be around in a month or so to pay up on letters of credit (L/Cs). This has made L/Cs harder to obtain in some quarters.

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Exporters worldwide hit by China's L/C shortage

Exporters across the world are finding it increasingly tough to do letter of credit (L/C) business, particularly with China according to some reports.

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Indian banks permitted to issue guarantees or L/Cs for payment obligations

The Reserve Bank of India (RBI) has permitted the country's banks to issue guarantees or standby letters of credit (L/Cs) to support payment obligations for commodity derivative deals overseas.

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Insurer and reinsurer settle differences

The US insurer Penn Treaty American Corporation has announced that it has agreed binding terms for a final settlement agreement in its dispute with Imagine International Reinsurance Limited.

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Complaints about Chinese L/C practices resurface

Complaints about Chinese banks refusing to pay out on letters of credit (L/Cs) because of small documentary discrepancies have resurfaced from Canadian exporters to China.

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China-Taiwan trade deal could impact Hong Kong's L/C business

China and Taiwan have agreed a landmark trade deal that expands the role shipping lines as well as charter and cargo flights can play in bilateral trade between the two markets.

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London blames L/C shortages for shipping downturn

Two of London's leading newspapers are blaming a letter of credit (L/C) shortage for severe downturns in shipping and international trade.

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L/C optimism found amidst credit gloom

Despite the growing volume of reports of a widespread shortage of letters of credit (L/Cs) as banks grow ever more reluctant to lend money for international trade, one of the world's largest suppliers of commodities and raw materials is saying it has no problems obtaining L/Cs.

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Ole Malmqvist, a colleague and friend has passed away

Early morning, October 24, Ole Malmqvist, renowned Danish trade banker, died from head injuries incurred due to a fall on September 27 while riding his bicycle on the pier near his home.

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L/C shortages driving shipping downturn

Several reports over recent days indicate a severe shortage of letters of credit (L/Cs), not only for exporters, but also for shippers who rely on L/Cs to ensure that they are paid for the cargoes they ship.

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UAE banks take tougher stance on Iranian L/C business

Banks in the UAE are stepping up pressure on Iranian firms by not opening letters of credit (L/Cs) for Iranian traders.

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Credit crunch bites into international trade finance

The intensifying credit crunch is spreading to international trade finance, with L/Cs becoming harder to come by as banks increasingly refuse credit to customers accustomed to borrowing to finance foreign transactions.

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Former Malaysian ruler must pay US$1 million in L/C case

A court in Malaysia has ordered one the country's former rulers to pay US$1 million to Standard Chartered Bank Malaysia in settlement of a long-running dispute centred on a letter of credit (L/C).

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Couple jailed for massive Hong Kong L/C fraud

A Hong Kong court has sentenced two people to jail terms of between 40 and 48 months for their part in a massive letter of credit (L/C) fraud.

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L/C cancellations contribute to Iraq fund's income decline

Auditors at the UN say the total income generated by the escrow account for Iraq made up of funds related to the expired and mainly letter of credit (L/C) based oil-for-food programme (OFP) dropped by over one third between 2005-06.

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Financial crisis hits L/Cs for trade finance purposes

In the midst of continued financial turmoil in the banking sector, it appears that it is now becoming harder to obtain letters of credit (L/Cs) for trade finance purposes.

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Nigeria's power probe fails to understand L/Cs

Contractors and consultants involved in Nigeria's programme of National Integrated Power Projects (NIPP) have gone to court to try to stop the house of representatives from deliberating on the report and recommendations of the house committee on power.

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Automated Export System will impact on US L/C professionals

Letter of credit (L/C) professionals in the US are being urged to familiarise themselves with the new ruling on electronic filing by the US Commerce Department.

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Russian bank reports continued increase in L/C market share

Russia's Promsvyazbank says its share of the country's letter of credit (L/C) market increased in the second quarter of 2008 to nearly 12 per cent.

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Self-insurance group suspended for failure to produce L/C

A Florida based residents group has had its certificate of authority to act as an insurer suspended because it failed to provide sufficient letters of credit (L/Cs) to underpin its financial strength.

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Nigeria probes petroleum product L/Cs

The Nigerian government has begun an investigation into letters of credit (L/Cs) used for petroleum product imports from 2004 onwards.

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L/Cs to beat credit crunch

India's sixth largest bank is looking to boost letter of credit (L/C) business as one way to help overcome falling interest income resulting from the global credit crunch.

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Turkey to benefit from EBRD's trade finance initiative

Turkey looks set to join the group of countries of operations to benefit from the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP).

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L/Cs feature in Shariah-compliant SME offering

Dubai-based Islamic Finance Company (IFC) is featuring letters of credit (L/Cs) in its range of Shariah-compliant financing solutions for small- and medium-sized enterprises (SMEs).

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Bolero announces multi-access deals with HVB and Fortis

Electronic trading platform provider Bolero has announced it will provide multi-bank platforms to HypoVereinsbank (HVB) and Fortis ECT Commodities.

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Citi's L/C refusal jeopardises Malawi's farm subsidy programme

Citibank has refused to guarantee a fertiliser deal worth US$17 million for the Malawi government owned Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) because a Belgium-based firm chosen to supply the commodity does not deal in fertiliser.

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L/Cs exposed in Lehman Brothers collapse

One of Sweden's largest banks has emerged as one of Lehman Brothers' largest creditors.

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Nigerian bank opens London branch

Another Nigerian bank is extending its European trade finance operations with a view to increasing letter of credit (L/C) business and other banking services between Europe and West Africa's largest economy.

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UPS proposes L/C alternative for small firms

UPS Capital, the financial services affiliate of the international shipping company UPS, says it is offering a way that is easier and more efficient than letters of credit (L/Cs) for US small companies to finance their trade transactions with international suppliers.

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Pakistan imposes 100 per cent margin on luxury L/Cs

The State Bank of Pakistan (SBP) has imposed a 100 per cent margin on letters of credit (L/Cs) used to import luxury items.

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More L/Cs would boost cross-border trade between India and Myanmar

Improved access to letters of credit (L/Cs) for cross-border traders in India and Myanmar is under discussion as buyers and sellers on each side of the two countries' border look to boost trade.

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L/Cs feature in Serbian oil business privatisation

Two letters of credit (L/Cs) have helped close the financing of the sale of state-owned assets in Serbia's downstream oil industry.

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Habib Bank goes with JPMorgan and IFC to boost L/C business

Pakistan's Habib Bank says it expects to benefit from a jointly funded trade advance by JPMorgan and the International Finance Corpration (IFC) set up to help boost trade activities across the Asia-Pacific region.

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L/Cs may feature in urea scams

Letters of credit (L/Cs) may be being used in scams in Bangladesh's volatile urea market according to local sources.

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Nigerian bank in Paris eyes L/C business

Nigeria's first major financial institution says it will target letter of credit (L/C) business from its new branch in Paris.

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Reinsurer accused of breach of obligation for failing to provide L/C collateral

A US insurer has provided notification of breach to a reinsurer for its alleged failure to provide the requisite level of collateral in the form of letters of credit (L/Cs) under an agreement between the companies.

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Judgment reserved on former Malaysian ruler and his US$1 million standby L/C

A court in Malaysia has reserved judgment in a case concerning the country's former ruler who allegedly owes Standard Chartered Bank Malaysia Berhad around US$1 million.

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Sanctions halt L/Cs for trade between Iran and Pakistan

The refusal by banks in Pakistan to accept letters of credit (L/Cs) from Iranian banks has all but halted bilateral trade between the two countries and encouraged the smuggling of goods, according to a long-established Pakistani newspaper.

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Oil dealers failing to obtain L/Cs

Oil dealers in the US are not obtaining the letters of credit (L/Cs) or other guarantees now required by law if they sign pre-buy contracts with customers placing forward orders for heating oil.

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Trade Bank of Iraq reports new L/C total

Trade Bank of Iraq (TBI) says the volume of letters of credit (L/Cs) it has now issued has now reached approximately US$30 billion over the last four years.

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Letters of credit can feature in new clearing and settlement system

Letters of credit (L/Cs) can feature in a new clearing and settlement system due to be launched during August.

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Oil L/Cs too dear for investment banks

A combination of the credit crunch and soaring fuel prices have pushed the costs of letters of credit (L/Cs) used in physical oil trades sky high and forced investment banks to reconsider whether they will continue in what was once a very lucrative business.

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UN head floats wind-down options for L/C based oil-for-food programme

UN Secretary-General Ban Ki-moon revealed in early August several options for resolving the outstanding issues in the closure of the UN's letter of credit (L/C based oil-for-food programme (OFP) for Iraq.

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Bibby reports strong North American growth

One of the world's oldest providers of international trade finance, including letters of credit (L/Cs), has reported strong growth at its North American division.

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Investment scheme fraudster who used L/Cs escapes jail

A man from the US state of Utah who stole money from four people - including a 73 year-old widow - as part of an investment scheme has avoided prison through plea-bargaining with the state prosecutor.

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Fraud warning from ICC's head in Bangladesh

The president of the International Chamber of Commerce (ICC) in Bangladesh has warned banks to keep a close eye on customers and check against documents likely to be used in letter of credit (L/C) and other frauds.

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Investigators move in on Pakistan's L/C fraudsters

Investigators in Pakistan say they are looking into several new fraud cases, including at least one that is said to have used fake letters of credit (L/Cs).

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Subsiding violence in Iraq boosts L/C business

Letter of credit (L/C) business in Iraq is increasing as violence in the country has dropped to a four-year low

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Delegation may signal improved Indo-Russian L/C relations

An Indian delegation visiting Russia may have prepared the ground for better relations between Indian and Russian banks wanting to write letter of credit (L/C) business.

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Developers shun L/Cs from Freddie Mac and Fannie May

New York state's Housing Finance Agency has said that for the first time, developers of multifamily apartment buildings were not taking up letters of credit (L/Cs) from troubled mortgage providers and backers, Fannie Mae and Freddie Mac.

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Forged L/Cs used in Indian property fraud

India's Central Bureau of Investigation (CBI) is investigating a US$2 million property fraud that employed forged letters of credit (L/Cs) and other fraudulent documents.

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Copper and L/Cs used in China to raise credit

Letters of credit (L/Cs) and copper imports are being used to obtain hard to come by credit from Chinese banks.

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Tennis club sued for failing to obtain L/C or bond

The Pennsylvania state attorney's office in the US has launched a consumer protection lawsuit against the operator of a failed tennis club who failed to obtain a letter of credit (L/C) that would have refunded membership fees to club members whose subscriptions to the club had not expired when it folded.

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Go ahead for L/C messaging via Swift

Banks and corporates have been given the go ahead to use the SWIFT financial messaging network for the exchange of trade finance-related information, including letter of credit (L/C) advice and applications.

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Exxon Mobil will not need L/C to help pay off US$5.4 billion Valdez oil spill damages

A divided US Supreme Court has slashed the amount of damages oil major Exxon Mobil will have to pay for the 1989 Valdez disaster to $507.5 million, ending a 19-year legal saga over the worst oil spill in US history.

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Survey finds significant increase in credit insurance, but L/Cs remain popular

A survey by one of the world's biggest credit insurers has reported a significant increase in the take up of credit insurance, but according to the survey by Atradius, letters of credit (L/Cs) remain a popular tool for ensuring payment.

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Swiss L/C software developer wins new customer

A Swiss developer of an advanced software solution designed for banks' letter of credit (L/C) departments says a European subsidiary of the National Bank of Abu Dhabi (NBAD) has now gone live with its software.

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Pakistan waives 35 per cent L/C cash margins on some items

Pakistan's central bank has waived a requirement to provide a 35 per cent letter of credit (L/C) cash margin on a number of essential imports.

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L/C features in trade finance deal of the year

A letter of credit (L/C) features in a deal that was recently awarded the 2007 Trade Finance Deal of the Year Award from Euromoney's Trade Finance Magazine.

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Bank's new Nevada operations boosted by L/C business

Buoyant letter of credit (L/C) business has helped a California-based bank expand its operations into Nevada in the US.

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Islamic Development Bank member reports increased L/C insurance business

The Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) has reported a 71 per cent increase in business in its 2007-08 financial year, bringing the total amount of business it insured during the year to US$1.47 billion.

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IFC initiative to improve trade finance in South Asia

The International Finance Corporation (IFC) is promoting its substantially letter of credit (L/C) based Global Trade Finance Programme (GTFP) in South Asia.

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JPMorgan and Asian Development Bank (ADB) sign L/C-based trade finance agreement

JPMorgan and the Asian Development Bank (ADB) have issued a statement to say they have entered a Risk Participation Agreement (RPA) designed to boost international trade in developing countries in Asia.

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Top countries named in EBRD's L/C centred financing programme

Russia, Azerbaijan, Tajikistan, Kazakhstan and Bosnia Herzegovina have emerged as frequent users of guarantees provided under the European Bank of Reconstruction and Development's (EBRD's) programme that guarantees letters of credit (L/C) and other trade finance instruments.

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L/C could have protected Canadian electricity supplier

A letter of credit (L/C) could have protected a company that supplies electricity tothe Canadian province of New Brunswick.

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Pakistan under pressure to reduce 35 per cent L/C margin

Pakistan's business leaders are pressuring the authorities to ease the blanket 35 per cent margin recently imposed on import letters of credit (L/Cs).

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Bolero rolls out end-to-end L/C solution in Nordic and Baltic regions

A financial services group in the Nordic and Baltic region, Nordea, and the neutral secure platform enabling paperless trading, Bolero International, have entered into an agreement that allows Nordea to offer Bolero's automated letter of credit (L/C) solution to more customers.

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Multi-billion US dollar L/C for Nigerian cement plants

A multi-billion US dollar letter of credit (L/C) has been used to finance much needed new cement capacity in Nigeria.

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Inflation makes Vietnamese L/Cs hard to come by

The cost of borrowing in Vietnam is making life difficult for the country's exporters, who are finding it increasingly difficult to obtain credit lines and letters of credit (L/Cs).

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Bank held liable for money transfer to a 'non-existent' foreign bank

A court in Sri Lanka has recently delivered what an insurance ombudsman has described as a landmark judgment on a letter of credit (L/C) transaction involving a local bank and an export shipment of gherkins.

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Pakistan imposes tough L/C margin in battle against inflation

The State Bank of Pakistan (SBP) has imposed a 35 per cent margin on most import letters of credit (L/Cs) as one measure in the central bank's battle to tame the country's spiralling inflation.

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US convention host disappointed by state's failure to provide L/C guarantees

A local committee in St Paul hosting the US Republican National Convention (RNC) says it is disappointed that state of Minnesota has failed fulfil its promise to provide letters of credit (L/Cs) as financial guarantees for the host city.

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Pakistan's MCB Bank joins IFC's L/C-based trade finance programme

Pakistan's MCB Bank Limited has become one of the latest financial institutions to join the International Finance Corporation's (IFC's) mainly letter of credit (L/C)-based Global Trade Finance Programme (GTFP).

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Deutsche Bank says L/Cs helped in dismal first quarter

Letter of credit (L/Cs) business has eased Deutsche Bank's losses in the first quarter of this year.

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Mediterranean bank network to enable better regional L/C provision

Members of the Mediterranean Bank Network could find it easier to provide customers with credit facilities, including letters of credit (L/Cs), as a result of a new agreement.

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US$6 billion of L/Cs for planes for India

The Export-Import Bank of the US (US Exim Bank) wants to provide a massive US$6 billion in letters of credit (L/Cs) to Indian carriers for acquiring aircraft from US producers.

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KBC and Bolero sign new agreement

KBC has signed with Bolero a new agreement that extends the relationship between the Belgian bank and the electronic trade platform provider.

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Nepal bans L/Cs for food grains

Nepal has followed India's suit by banning letters of credit (L/Cs) for food exports.

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Pakistan halves forex advance on import L/Cs

The State Bank of Pakistan (SBP) has halved the 100 per cent advance foreign exchange payment importers have been able to make against irrevocable letters of credit (L/Cs) for the last few months.

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IFC's L/C based trade finance scheme hits US$2 billion target

The International Finance Corporation's (IFC's) mainly letter of credit (L/C) based Global Trade Finance Programme (GTFP) has reached a new milestone.

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New credit insurance to supplement L/Cs for Bahraini businesses

Bahrain Kuwait Insurance Company (BKIC) has launched a new credit insurance scheme that it says will supplement letters of credit (L/Cs) already available for Bahraini businesses.

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Former bank worker jailed for L/C conspiracy

An Ohio woman who helped an accomplice create fake letters of credit (L/Cs) to try to defraud a truck leasing company out of more than US$1 million worth of trucks and trailers has been jailed.

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Calls for cut price L/Cs for Gambian rice imports

The Gambian government should encourage low interest letters of credit (L/Cs) to keep soaring global prices of essential foodstuffs, particularly rice, as low as possible, according to a Gambian consultant.

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Improved L/C availability for Russia-Kazakhstan deals

Kazkommertsbank has signed an agreement with Export-Import Bank of Russia (EximBank) to co-operate in financing and guaranteeing the supply of Russian capital equipment to Kazakhstan.

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Steel company uses L/C in allegedly illegal price manipulation

Investigators are saying that Bangladesh Steel Re-rolling Mills (BSRM) used a letter of credit (L/C) in a deal that made it the main offender behind an increase in iron rod prices in the local market.

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Financial institution fails to act on L/C fraud

Reports are emerging from the Faisalabad region of Pakistan that a financial institution has yet to act on an alleged letter of credit (L/C) fraud that appears to have cost it the equivalent of more than US$5 million.

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Financial institution fails to act on L/C fraud

Further details are emerging about the letters of credit (L/Cs) used in financing arrangements for the expansion of Nigeria's power sector.

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Investigators search for L/Cs in Jamaican investment probe

The executives of a controversial Jamaican investment scheme may have used letters of credit (L/Cs) to channel investors' funds across several continents.

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China's credit regulations hits L/C business

Tight credit regulations in China are making an impact on buyers who used to use letters of credit (L/Cs) to buy caprolactam, a key feedstock for a type of nylon routinely used in manufacturing processes.

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Ethiopian bank goes hi-tech to meet increased L/C demand

State-owned Commercial Bank of Ethiopia (CBE) says it will adopt a technologically advanced letter of credit (LC) mechanism as a result of a business process re-engineering exercise carried out by the bank.

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Lawyer sees more L/C business

An international lawyer says he is seeing traditional trade finance products, including the letter of credit (L/C), making a comeback.

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Service tax refunds on L/C charges for Indian exporters

The Indian government has announced refunds on taxes paid by exporters on various services, including costs of letters of credit (L/Cs), custom house agent service and commission agent service.

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Automated L/Cs for old and new Questaweb users

Questaweb, a US-based provider of global trade and logistics management solutions, has announced that the latest versions of its global trade management system will totally automate the letter of credit (L/C) process as a standard, fully integrated feature.

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Bangladesh sees increase in L/C business

Letter of credit (L/C) usage is on the increase in Bangladesh on the back of private sector credit growth of 11.1 per cent to US$2.44 billion during July-December last year.

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No concessions for traders with L/Cs in India's ban on edible oil exports

India has banned exports of edible oil for one year in its efforts to check rising domestic prices and control inflation.

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Vietnam's Seabank signs L/C pact with Bank of China

The Bank of China (BoC) has agreed to cooperate with Vietnam's Southeast Asian Bank (Seabank) in international payments, including letters of credit (L/Cs).

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Ex-bank manager acquitted after 22-year L/C graft trial

An ex-bank manager and four other people have been acquitted of graft charges mainly related to letters of credit (L/Cs) issued by a bank in the Indian city of Chandigarh.

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Standard Chartered says its L/Cs will help Brunei's small firms

Standard Chartered Bank has launched its Express Trade service for small- and medium-sized enterprises (SMEs) in Brunei with the aim of accelerating the country's trade with the rest of the world.

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L/Cs provide safe haven in global financial turmoil

An Indian businessman has turned to letters of credit (L/Cs) to raise finance for his company as more exotic financing options apparently become more difficult to secure amidst uncertainties in the global financial markets.

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L/Cs will guarantee delivery of Nigeria's power infrastructure

Letters of credit (L/Cs) will make sure that Nigeria's long-term and very large scale plans to develop a reliable power generation and transmission grid stay on track according to a government minister.

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Legg Mason procures new L/C to assure investors

Legg Mason, a US asset manager, has obtained a letter of credit (L/C) worth US$150 million to support a cash fund's holding in the UK-based structured investment vehicle Cheyne Finance.

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US watchdog says US$47 of bogus L/Cs appeared to be assets

The US Securities and Exchange Commission (SEC) says it has filed a complaint against five individuals charging them with a financial fraud that allegedly involved bogus letters of credit (L/Cs) purportedly worth US$47 million.

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Iran's central bank helps sanctioned banks write L/C business

US senators are pressing for sanctions to be imposed on Bank Markazi, Iran's central bank, for helping banks already blacklisted by Washington to do letter of credit (L/C) business.

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Two jailed for HK$9 million L/C frauds

Two company directors have been sentenced by a Hong Kong court for their roles in a HK$9 million letter of credit (L/C) fraud based on bogus business transactions.

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India and Russia should improve L/C relationships

The Federation of Indian Chambers of Commerce and Industries (FICCI) is calling on the Indian government to explore ways to make letter of credit (L/C) transactions between Russia and India work effectively.

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L/C is unlawful says ethanol plant developer

The developer of a Canadian ethanol plant that has been asked to open a C$32 million letter of credit (L/C) by the contractor laying the pipeline to the plant has filed a motion with the Ontario Energy Board (OEB) saying the contractor's request is unlawful.

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Trade Bank of Iraq ups 2008 L/C target

Trade Bank of Iraq (TBI), established to finance trade and help in the reconstruction of the country, plans to issue about US$7.5 billion in letters of credit (L/Cs) this year according a top official.

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Iran to use L/C alternatives for oil exports

Letters of credit (L/Cs) are not the only method of payment for Iranian oil according to an official who appears determined to overcome the obstacles placed on the Islamic republic's exporters by sanctions imposed by Washington.

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No L/Cs please say Myanmar's rice exporters

Private sector exporters in Myanmar say they plan to export 400,000 tons of rice to Bangladesh, but importers will not be able to use letters of credit (L/Cs) to pay for the much-needed staple.

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India withdraws rice exporters' L/C concession

The Indian government has withdrawn concessions given to rice exporters using letters of credit (L/Cs) by announcing the complete prohibition of exports of non-basmati rice to strengthen supplies in the domestic market.

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US lawyer cautions against L/Cs for mortgage protection

A lawyer has warned US mortgage holders to treat requests for letters of credit (L/Cs) by lenders suggesting that their homes would be protected by doing so with some caution.

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Bangladesh reports L/C surge

The value of import letters of credit (L/Cs) opened in Bangladesh in January 2008 was double the value of similar credits opened in January 2007.

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Left over oil-for-food L/Cs to develop Iraq

The UN has transferred US$161 million from the L/C-based and now defunct oil-for-food programme (OFP) to a development programme for Iraq, UN Secretary-General Ban Ki-moon has said.

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Football coach stumps up US$1.5 million L/C in contract dispute

A prominent American football coach has filed a US$1.5 million letter of credit (L/C) with a US court as a gesture of good faith in an employment contract dispute with his former employer.

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Bankrupt firm not liable to pay L/C investments

In 2006 a total of 74 investors signed letters of credit (L/Cs) for Central Illinois Energy's (CIE's) proposed ethanol project in the US.

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Nigerian and Chinese banks agree L/C cooperation

As China increasingly looks to Africa as a source of commodities and natural resources, banks are forging closer ties to facilitate trade and investment between the two places.

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L/C prompts Kenyan exchange rate review

A letter of credit (L/C) deal has prompted Kenya's courts to decide to change the way the date on which exchange rates are calculated is decided.

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L/C refused by eBay fraudster

A US couple who offered to pay mainly by letter of credit (L/C) for a vintage car they saw advertised on the auction site eBay were conned outof tens of thousands of US dollars by the bogus seller who said that only cash up front would do for him.

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New twists in US L/C scam

A second man has agreed to plead guilty to federal charges in connection with an Internet sales scheme in which nearly US$15 million was netted from people across the US who wanted to buy electronic gadgets.

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UCP 600 awareness for corporates

Since October 2006 when the latest revision of the Uniform Customs and Practice for Documentary Credits (UCP 600) was announced, bankers have been learning about and working with the new rules.

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Delays in L/C settlement in Bangladesh are a hidden investment cost

Delays in the settlement of letters of credit (L/Cs) are amongst hidden costs for investors in Bangladesh, where the overall cost of investment is falling according to a new survey conducted by the agency that promotes trade and investment between Japan and the rest of the world.

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UAE currency revaluation likely to impact on L/C business

Letter of credit (L/C) business will be affected if the United Arab Emirates (UAE) revalues its currency according to a recent report.

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Bolero launches new Multi-Bank Dashboard for corporates

Bolero, the online platform for electronic transactions, has announced the commercial availability of the latest version of its Multi-Bank Dashboard.

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US presidential hopeful funded by L/Cs

Presidential hopeful John McCain has resorted to letter of credit (L/C) funding for his campaign to become the Republican's candidate for the White House.

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US banker faces jail for L/C fraud

A former bank manager faces jail for his part in a 2005 scam that included a fraudulent letter of credit (L/C).

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How L/Cs play a role in the credit crunch

Some of the roles letters of credit (L/Cs) played in the credit crunch that started in the US sub prime mortgage market last year are beginning to emerge.

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Trade Technologies acquires International Document Control Company

A US-based new start provider of technology and outsourced services for overseas payments has acquired a specialist provider of letter of credit (L/C) documentation in the New York area.

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Westpac to offer L/Cs in Shanghai

Letters of credit (L/Cs) and other trade finance services will be a key focus for Australia's Westpac as it expands its presence in China.

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India denies US pressure on Iranian L/Cs

The State Bank of India (SBI) has denied that it has been pressured by the US to stop honouring letters of credit (L/Cs) issued by Iranian banks.

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Philippine National Bank need not turn over US$4.4 milllion L/C yet

The Supreme Court in the Philippines has issued a temporary restraining order against a lower court's ruling for the Philippine National Bank (PNB) to turn over to the government a US$4.4-million letter of credit (L/C).

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Georgian importer alleges L/C fraud by Brazilian food producer

Georgian food importer Agritechnics Group is suing Brazilian food producer Sadia and its subsidiary Wellax Food Logistics for misappropriation of US$1.4 million based on a fraudulent transaction.

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Bangladesh reports L/C surge

The opening of new letters of credit (L/Cs) against imports into Bangladesh increased by 20.4 per cent during the first five months of the current fiscal year compared with the same period last year, according to provisional statistics released by Bangladesh Bank (BB), the country's central bank.

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Cash management and L/Cs top US list of bank services

Letters of credit (L/Cs) rank second in the list of financial products and services most used by US-based chief financial officers (CFOs) in US manufacturing firms according to a recent survey.

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L/C business increasing claims Iranian banker

A senior Iranian banker has said that letter of credit (L/C) business at Iran's Bank Mellat is on the increase.

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L/C delays a factor in Iraq's uncertain oil future

A former Iraqi oil minister has identified delays in opening letters of credit (L/Cs) as one reason why he believes the prospects for Iraq's oil sector are uncertain.

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US banker faces jail for L/C fraud

A former bank manager faces jail for his part in a 2005 scam that included a fraudulent letter of credit (L/C).

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Credit crunch spurs new L/C business

Letters of credit (L/Cs) are being employed by large investment firms struggling to make their money market funds appear safe amidst the current turmoil in the credit markets.

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Auditors should turn "whistle blowers" if they detect L/C fraud

In what lawyers say is an important decision, an English commercial court has decided that a claim can be made against auditors who failed to spot a letter of credit (L/C) fraud, even if the fraud was perpetrated with the aim of benefiting the company in question.

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Pakistan's state of emergency hits L/C business

The state of emergency declared by President Pervez Musharraf in Pakistan has substantially reduced the amount of import letters of credit (L/Cs) opened in the country.

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Iraqi ministries to receive L/C training

The Trade Bank of Iraq (TBI) is to hold a series of training sessions for Iraqi ministries that will include classes on how to handle letters of credit (L/Cs).

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Exim Bank India lends L/C support to Senegal

Export-Import Bank of India (EximBank India) has agreed with the government of the Republic of Senegal to provide a US$10 million credit line for the West African country.

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Canada's actuaries recommend L/Cs in pension reforms

Canada's actuaries have presented the Ontario government with an action plan for reversing the decline in defined benefit pension plans.

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Ghana's central bank goes live with Temenos system to support L/C business

Ghana's central bank has gone live with Temenos T24 (T24) banking software, which supports letters of credit (L/Cs) as well as a raft of other banking functions.

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Bank of America offers lower price L/Cs in drive for Chinese business

The Bank of America is pushing its Vendor Financing Programme (VFP) - which includes lower cost letters of credit (L/Cs) - as part of it's bid to win potentially lucrative China mandates.

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Latin American banks sign up for IDB's L/C-based trade programme

The Latin American units of Spain's Banco Bilbao Vizcaya Argentaria (BBVA) have joined the Inter-American Development Bank's (IDB's) largely letter of credit (L/C) based Trade Finance Facilitation Programme (TFFP) as confirming banks.

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First Capital plugs L/C alternatives

A US financial services company has launched a trade finance programme that it claims contains products that could provide cash flow improvements and other benefits to importers currently paying on letter of credit (L/C) or cash terms.

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Sanctions stemming Iran's L/C flow

The Iranian economy is starting to feel the sting of banking sanctions applied by the US to pressure Tehran over its controversial nuclear drive and its support of what Washington sees as terrorist groups, according to a recent report.

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Omani bank reports strong L/C performance

Another Middle Eastern bank has reported brisk letter of credit (L/C) business for the first nine months of this year.

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Uncertainty over pre-rice export ban L/C commitments

Rice exporters in India are uncertain what to do about shipments committed to by letters of credit (L/Cs) before the authorities banned the export of non-basmati rice.

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Government L/Cs will keep Lebanon's electricity flowing

Lebanon's finance minister, Jihad Azour, has said the government will issue all the letters of credit (L/Cs) needed for tankers to unload the fuel required by the country's state-run power stations.

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Provinces L/C use in Canada's pension schemes

Two Canadian provinces will consider the use of letters of credit (L/Cs) in pension schemes as they work together to harmonise their pension standards.

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Maltese L/C case appeal

An appeal court in Malta has found in favour of a bank that paid out on a letter of credit (L/C) to a foreign supplier for goods, even though those goods were of inferior quality.

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Bangladesh reports 23 per cent L/C growth

The value of fresh letters of credit (L/Cs) opened against imports into Bangladesh increased by 23.35 per cent during the first quarter of the current fiscal year (July through August) compared with the same period last year.

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US L/C fraudster convicted

A recently convicted fraudster who used fake letters of credit (L/Cs) in a venture capital scam faces a maximum sentence of 145 years in prison and fines of more than $2.4 million when he is sentenced in November.

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Forged L/Cs may have landed US communications contract

A former employee of a now collapsed US communications company is suspected of forging a letter of credit (L/C) to win a contract to provide digital cable television, telephone and Internet services in the city of Provo in Utah.

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HSBC India suggests factoring when L/Cs fail to satisfy

Small- and medium-sized enterprises (SMEs) involved in exporting should consider factoring if importers balk at the prospect of bearing costs associated with letters of credit (L/Cs).

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L/Cs allowed for Sino-Russian trades

China and Russia have formally launched a trade platform that will allow letter of credits (L/Cs) transactions and futures trading between the two countries.

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Bangladeshi banks: L/Cs for businesses of people facing charges

The Bangladesh Bank (BB) has advised the country's commercial banks that decisions whether to open letters of credit (L/Cs) for the businesses of people facing criminal charges should not be unduly influenced by the prospect of legal action.

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Indian L/Cs set to grow in trade finance surge

Letter of credit (L/C) business is set to grow in India, and banks should prepare for a surge of trade finance business as the country's economy grows.

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Low risk L/Cs should attract Brazilian businesses to the Gulf

Brazilian companies should take advantage of low risk letters of credit (L/Cs) to win business in the Gulf's booming construction market.

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L/Cs in yen, not US dollars, for Iranian oil

Japan's Nippon Oil is to start opening letters of credit (L/Cs) to pay for Iranian oil in yen rather than in US dollars.

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Interpol cautions against L/C scams in its name

Interpol has issued a warning about emails from fraudsters claiming to be acting for the world's largest police organisation.

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Pakistan allows advance payments against L/Cs

The State Bank of Pakistan (SBP) has allowed advance payments against letters of credit (L/Cs) and firm-registered contracts up to 100 per cent of the value of the imported goods.

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L/Cs in West African Monetary Zone can be in national currencies

Letters of credit (L/Cs) can be opened in national currencies in countries participating in the emerging West African Monetary Zone (WAMZ).

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BNP Paribas to increase Gulf L/C availability

BNP Paribas will make letters of credit (L/Cs) more available to its clients in the Gulf as it expands its network of offices and delivery channels in the UAE and the wider region according to a senior bank executive.

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Animal deaths followed L/C delays says Australian animal rights group

An Australian animal rights group has called on the federal regulator of the controversial live-export trade to prosecute exporters after revelations of high mortality rates on four ships last year.

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Indian court says L/C contract takes precedence over export ban

A court in India has overturned an order by India's Director General of Foreign Trade (DGFT) for an exporter to stop shipments of skimmed milk powder (SMP) as specified in letters of credit (L/Cs) opened before India decided to ban SMP exports.

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Long opening hours for HSBC's L/C customers in Sharjah

Letters of credit (L/Cs) will be available six days a week in HSBC Bank Middle East's expansion plan in the United Arab Emirates (UAE) for its business banking franchise.

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Bangladesh reports L/C surge

The value of fresh import letters of credit (L/Cs) opened in Bangladesh significantly increased ahead of the Muslim holy month of Ramadan according to officials in Dhaka.

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China postpones enforcing L/Cs for raw material imports rule

China has held off enforcing a controversial new rule that would force manufacturers of cheaper goods to pay cash deposits on imports of essential raw materials.

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Thai officials predict L/C surge

Thai officials are concerned that the country's export drive is not going as well as they originally forecast.

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Bhutan signs up for IFC's L/C guarantee programme

Bhutan National Bank (BNB) has become the first bank in Bhutan to join the International Finance Corporation's (IFC's) largely L/C-based Global Trade Finance Programme (GTFP).

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Bangladesh says keep L/C prices low in Ramadan

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is concerned that banks will overcharge for letters of credit (L/Cs) opened during the Muslim holy month of Ramadan.

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Thai barter deal controversy dies down

The controversy in Thailand over a barter deal triggered by a letter of credit (L/C) looks set to die down after an Assets Scrutiny Committee (ASC) panel agreed the deal was lawful.

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Confusion for L/C managers over Nigeria's currency redenomination

In mid August the governor of the Central Bank of Nigeria (CBN) announced plans to remove two zeros from the naira. This policy would have required banks handling letter of credit (L/C) business to open special accounts to cover transactions opened under the old denomination and settled under the redenominated currency.

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Lack of L/Cs impedes Lebanon's fuel imports

A total electricity blackout is expected in Lebanon due to a lack of fuel for the country's power plants according to local media.

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L/C scamster extradited from Germany

A man wanted by India's Central Bureau of Investigation (CBI) for allegedly cheating six Indian state banks of about US$8.5 million and defrauding the government of Vanuatu, has been extradited from Germany in an air ambulance.

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US Ex-Im Bank standby L/C support

The Export-Import Bank of the United States (Ex-Im Bank) is continuing its support of US exporters using letters of credit (L/Cs) by providing a multi-million dollar working capital loan guarantee to a small California-based technology company.

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JPMorgan selected to handle OCBC Bank's L/C processing

JPMorgan Treasury Services has announced that it has been selected by Overseas-Chinese Banking Corporation Limited (OCBC Bank) as its trade processing partner.

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Check contractual partners to avoid L/C scams says maritime fraud expert

An expert in maritime fraud has told the Sri Lankan maritime community that trade finance involving shipment of goods by sea can lend itself to money laundering.

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IFC says it has guaranteed US$1.5 billion of trade finance

The International Finance Corporation (IFC) says it has reached a milestone of US$1.5 billion in guarantees issued since its Global Trade Finance Programme (GTFP) began in October 2005.

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L/C arrangements complicate Iraq's government procedures

Letter of credit (L/C) arrangements contribute to a raft of problems that hinder the establishment of a functioning government in Iraq, according to the latest report published by the Special Inspector General for Iraq Reconstruction (SIGIR)

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Hong Kong investors say L/Cs not cash in China's new trade policy

Hong Kong investors have called on China to accept letters of credit (L/Cs) in lieu of cash deposits under Beijing's new trade policy.

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L/Cs could make food available in flood stricken Bangladesh

Letters of credit (L/Cs) should be made more available to food importers in Bangladesh to help alleviate food shortages there caused by flooding brought by torrential rains.

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Shanghai firms business L/C holders can apply to recover funds says Britain

The former chairman of a US-based trading company has gone on trial for allegedly swindling 5.63 million yuan (US$740,789) from four Chinese trading companies.

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Alleged L/C fraudster files for bankruptcy

An alleged letter of credit (L/C) fraudster has filed for bankruptcy in the US in an attempt to settle nine fraud claims made against him.

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First listed Vietnamese bank to provide L/Cs for China trades

Ho Chi Minh City-based Sacombank has received approval from Vietnam's central bank to set up its first overseas representative office in Guangxi, China.

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Iran wants L/Cs yen not dollar denominated

Iran has asked Japanese refiners to switch to yen rather than US dollar denominated letters of credit (L/Cs) to pay for all crude oil purchases.

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Scrapping L/C restrictions would lift US agriculture sales to Cuba

The US' share of Cuban agricultural imports would rise to between one-half and two-thirds if trade and travel restrictions were lifted says a report by the US International Trade Commission (ITC).

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Wrangling over L/Cs continues to dog Dhabol power plant

The beleaguered Dabhol power plant in the Indian state of Maharashtra is once more ready to start generating power, but yet again a failure to make suitable letter of credit (L/C) arrangements may prevent the power plant from generating electricity.

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Thai exporters must show L/Cs to obtain credit

Conditions for obtaining loans are tightening for beleaguered Thai textile and garment exporters, whose baht denominated income is being steadily eroded by the strengthening currency.

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BNP Paribas connects Cypriot clients

BNP Paribas has introduced its Cypriot clients to an internet-based trade finance solution that will allow clients to manage several letter of credit (L/C) functions online.

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Underworld connections to L/Cs in export scam

Indian investigators probing the illegal exports of pulses at a time when such sales were banned have unearthed evidence connecting the alleged scam with one of the world's most notorious underworld groups.

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Forged L/Cs in Bangladeshi import scam

Customs officers at Bhomra land port in Bangladesh have unearthed a trading scam apparently organised by fraudsters using forged letters of credit (L/Cs).

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L/Cs feature in programme to promote Kenyan SMEs owned by women

An initiative delivered through Equity Bank in Kenya will offer loans and business services, including letters of credit (L/Cs), to the country's women entrepreneurs.

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L/Cs help reveal customs evasion in Bangladesh

Over the last six years, unscrupulous traders and agents in Bangladesh have avoided paying the equivalent of around US$83 million in customs duties on imported fruit alone at two land ports in Bangladesh according to a recent investigation.

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Kolkota court to hear L/C fraud case

A court in Kolkata is to hear a case of alleged fraud involving forged letters of credit (L/Cs) amounting to the equivalent of around US$2 million.

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FMO and Standard Chartered ink Bangladesh L/C guarantee facility

The Netherlands Development Finance Company (FMO), which supports the private sector in developing countries and emerging markets, and Standard Chartered Bank have signed an agreement that will provide better letter of credit (L/C) access for clients of private commercial banks in Bangladesh.

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IFC builds support for African L/Cs with Kenyan Commercial Bank

The International Finance Corporation's (IFC's) largely letter of credit (L/C)-based Global Trade Finance Programme (GTFP) is making significant inroads in Africa.

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State support for China's L/C transacted exports

China's state-owned export credit agency (ECA) has been explaining how it can support letter of credit (L/C) transactions to help China's burgeoning motor manufacturing sector reach into new and wider global markets.

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Investigations into L/C scam to reopen

The Congress (government) of Assam is threatening to revive investigations into an alleged letter of credit (L/C) scam in which the north-eastern Indian state's former chief minister Prafulla Kumar Mahanta is suspected of involvement.

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Standby L/C unacceptable in East African pipeline financing

A standby letter of credit (L/C) proposed in the financing arrangements for the US$100 million Eldoret-Kampala Oil Pipeline Extension Project in East Africa is unacceptable to the project sponsors. They have delayed signing the winning bid for this major project for several reasons.

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Lenders refuse L/Cs for petrochemical giant

Bankers are refusing to open new letters of credit (L/Cs) for one of India's largest petrochemical companies.

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IDB goes to Guyana to explain L/C support

The Inter-American Development Bank (IDB) has been in Guyana explaining how it can help entrepreneurs to access finance for smaller scale trade and investment opportunities through a variety of mechanisms.

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Five per cent duty on L/C in new levies for Pakistan's banks

Pakistan's government has imposed five per cent federal excise duty on twelve types of non-fund banking services, including letter of credit (L/C) issuance.

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Citibusiness introduced to Indonesia

Citibank has introduced in Indonesia a package of banking services specifically geared to the country's fast growing stock of small- and medium-sized enterprises (SMEs).

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BNP Paribas says L/Cs could win it Cypriot business

BNP Paribas is lining itself up to become a prime contender for new banking business likely to materialise in Cyprus when it adopts the euro in January 2008.

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L/Cs employed in clampdown on oil traders

Letters of credit (L/Cs) are being employed by some US states in new laws that aim to prevent unscrupulous oil traders sellingand subsequently failing to deliver oil for heating purposesto customers who putmoney up front.

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Business moguls fall out over L/C loan

Two super-rich businessmen are slugging it out through the Singaporean courts after one of them allowed the other to use his letter of credit (L/C) facilities.

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IFC lends L/C support for Kathmandhu

The International Finance Corporation (IFC) is providing a US$2 million facility to the Bank of Kathmandu in Nepal as part of its substantially letter of credit (L/C)-based Global Trade Finance Programme (GTFP).

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L/Cs blamed for clogging Nigerian ports

A Nigerian business group has cited delays in processing letters of credit (L/Cs) as one reason why new customs arrangements at Nigeria's ports are unworkable.

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Too many small L/Cs for Bangladesh

Bangladesh is struggling to keep the lid on inflation substantially caused by a shortage of imported essential items. One of the measures taken by the Bangladeshi central bank to combat this has been to encourage commercial banks to offer letters of credit (L/Cs) to smaller importers to buy goods that are in short supply.

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New L/C facility set to boost Indo-Myanmar trade

New letter of credit (L/C) facilities at banks in India and Myanmar may emerge after a senior Indian official revealed that the governments of both countries are considering opening up cross-border banking arrangements.

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SWIFT issues early standards to fit with UCP600

SWIFT, the industry-owned co-operative supplying secure, standardised messaging services and interface software to financial institutions worldwide, has taken the unusual step of issuing new guidelines ahead of revised standards that are usually released just once a year.

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BNP Paribas connects Cypriot clients

BNP Paribas has introduced its Cypriot clients to an internet-based trade finance solution that will allow clients to manage several letter of credit (L/C) functions online.

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Japan backs L/Cs for exports to Pakistan

Japan Bank of International Cooperation (JBIC) has agreed to extend a long-term credit line to National Bank of Pakistan (NBP) with the specific aim of boosting letter of credit (L/C) transactions between the two countries.

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Solo Industries suspect held in India

Reports are emerging in the Gulf media that suspected letter of credit (L/C) fraudster Madhav Patel has been apprehended by the Indian authorities.

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German worries over UN sanctions' impact on L/Cs for Iran

German firms have hit out against their government's support for UN sanctions imposed on Iran's financial institutions that, amongst other things, restrict letter of credit (L/C) transactions between the Islamic republic and countries in support of the sanctions.

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Algerians warned of L/Cs position in money-laundering

An advisor to the Financial Action Task Force on money laundering (FATF) has been telling Algerian bankers that money launderers routinely employ letters of credit (L/Cs) somewhere in their attempts to make illegitimately obtained money appear legitimate.

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Pakistan calls for accelerated L/C flows with Iran

A Pakistani business leader has urged officials in Pakistan and Iran to prepare a framework for accelerated letter of credit (L/C) transactions for the benefit of traders on both sides of the two countries' borders.

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Supply chain solution features L/C progress tracking

Two US companies have announced a new web-enabled solution that reckons to track goods and payments in a way that can improve companies' supply chain management.

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Macau bank accused of providing L/Cs to North Korean clients

A small Macau bank accused by the US of money laundering and distribution is accused of providing letters of credit (L/Cs) to North Korean clients, according to an audit report recently obtained by The Associated Press (AP).

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National Bank of Oman joins others to report improved L/C performance

Increased letter of credit (L/C) business has contributed to improved performance at one of Oman's largest banks.

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L/C transactions recommended for US exports to Africa

The head of a US e-commerce company providing international trade finance services is pressing US exporters to use pre-shipment finance backed by importers' letters of credit (L/Cs) when dealing with African buyers.

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Bangladesh Bank launches US$7.5 million L/C fraud investigation

The Bangladesh Bank (BB-central bank) has launched an investigation into allegations that US$7.5 million has been smuggled out of the country via letters of credit (L/Cs) opened at several banks.

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Mongolia targeted for EBRD's L/C-based trade programme

Mongolia looks set to become the latest country to benefit from the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP), the letter of credit (L/C) based trade finance initiative widely regarded as one of the more successful stories in development banking.

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TradeBeam strikes partnership with Chinese government

An organisation charged with providing information technology infrastructure services for China's Ministry of Commerce and rolling out e-government services across China says it has struck a 10 year strategic partnership with TradeBeam of the US to bring its global trade management (GTM) software to the Chinese market.

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Standby L/Cs help exporter win US Ex-Im Bank environmental award

A financing structure that incorporates guarantees from the Export-Import Bank of the United States (Ex-Im Bank) and standby letters of credit (L/Cs) has helped The Robbins Company win this year's Small Business Environmental Project Exporter of the Year award.

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Failure to obtain L/C interpreted as indication of leak over the future of Ground Zero

A Chinese company's statement that it had failed to obtain a letter of credit (L/C) for a lease on a prestigious piece of New York real estate has been interpreted as an indication that news of a U-turn on the future of Ground Zero was leaked before it was publicly announced.

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Columbia man pleads guilty to US$3 million L/C scam

A man who duped US investors from Missouri and Georgia into investing in schemes supposedly incorporating standby letters of credit (L/Cs) has pleaded guilty to conspiracy to commit money laundering.

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Standard Chartered sees move away from L/Cs

"Trade is moving to open account away from documentary credit," according to senior executives of Standard Chartered Bank (StanChart) in Dubai.

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Sierra Leonean banks sign up to IFC's Global Trade Finance Programme

The International Finance Corporation (IFC) signed trade finance agreements on 22 March with three leading banks in Sierra Leone that should enable them to provide import letters of credit (L/Cs) to the country's business community.

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Alberta delays inclusion of L/Cs in pension schemes

Far-reaching amendments to the Alberta Employment Pension Plans Act have come into effect. The amendments either ensure that Alberta is in step with standards in other jurisdictions or place the western Canadian province ahead of other jurisdictions, according to law firm, Blake, Cassels & Graydon (Blake's).

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L/Cs used to bypass India's pulse export ban

India's Commerce Ministry says it has asked the Central Bureau of Investigation (CBI) to look into the matter of "inappropriate" usage of letters of credit (L/Cs), which are apparently being used to circumvent an export ban.

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Bank officials face trial over fraudulent L/C negotiation

A court in Calcutta is to hear a case in which a businessman and bank officials are alleged to have fraudulently negotiated export bills drawn on a letter of credit (L/C), despite another bank's refusal to do so because it found gross discrepancies in the documents.

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Forged L/C documents may be central to investigations into suspected British fraud in Iraq

A report in a British newspaper says letters of credit (L/Cs) may be central to investigations into a multi-billion dollar alleged fraud in Iraq in which at least one British company was paid for armoured vehicles ordered by the Coalition Provisional Authority (CPA) in Iraq.

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Delayed L/Cs are no excuse for Indian power company

India's Supreme Court has dismissed an appeal by the National Thermal Power Corporation Ltd (NTPC) against the judgment of the Delhi High Court where the Indian power company had challenged the partial award given by arbitrators at the International Chamber of Commerce (ICC) in Paris.

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Fitch ratings upgrade for Malawi good for L/C business

Fitch, the international ratings agency, has upgraded Malawi's long-term foreign currency Issuer Default Rating (IDR) from CCC to B- with a Stable Outlook and its short-term IDR from C to B-.

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IMF declares legal US' L/C-impeding ban on Iranian banks

Sanctions imposed by the US on an Iranian bank do not contravene foreign exchange rules according to an International Monetary Fund (IMF) spokesman. He was responding to a request from Tehran asking the IMF to determine whether Washington's actions were legal.

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US exporters soon may not need L/Cs for exports to Cuba

Letters of credit (L/Cs), which are required by law for US exports of food and medicine to Cuba, may soon not be needed.

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Alleged L/C fraudster's Singapore safe haven challenge

A suspected Indonesian letter of credit (L/C) fraudster's refuge may become an unsafe haven if Jakarta succeeds in persuading Singapore to sign an extradition treaty, albeit by employing some apparently strange tactics.

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S1 Enterprise announces new trade finance system

Atlanta-based S1 Enterprise has announced the availability of S1 Enterprise Trade Finance.

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Short-term L/Cs excluded from China's reduced foreign debt quota

The Chinese authorities have told banks to reduce short-term foreign debt quotas, but only letters of credit (L/Cs) with terms of more than 90 days will count towards the new quotas.

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Bangkok governor cleared in Thai fire engine scandal

High-ranking politicians are among five people to be investigated by Thailand's Assets Examination Committee for alleged involvement in a scandal that hinged on an official opening a letter of credit (L/C).

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Hawala clampdown in Dubai may impact on L/C business

Dubai's hawala operators, who move huge sums of money mainly for Asian expatriates via informal money transfers, have been told by the UAE Central Bank to freeze the accounts of those involved in money laundering

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No problems with L/Cs despite sanctions on Iranian banks

An Iranian industry leader says business is booming and there are no problems opening foreign exchange letters of credit (L/Cs) despite sanctions imposed by Washington on dealings with Iranian banks.

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Citibank chips in with its SME offering

Citibank has announced a new suite of business and financial solutions, including letters of credit (L/Cs) specifically aimed at UAE-based small- and medium-sized enterprises (SMEs) with annual turnover of up to US$50 million

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Bangladesh L/C values in decline

The value of import letters of credit (L/Cs) in Bangladesh declined by about US$100 million in January 2007 compared with the same month last year.

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Mysterious circumstances surround L/C fraudster's death

A letter of credit (L/C) fraudster who was apparently killed in a plane crash in the US now appears to have died in even more mysterious circumstances according to a report by the National Transportation Safety Board (NTSB).

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Tougi presents customers with L/C alternative

A new online platform over which buyers and manufacturers can do business, is suggesting that its customers could benefit from a letter of credit (L/C) alternative they are making available.

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IFC doubles trade finance scheme to US$1 billion

The International Finance Corportation (IFC) has doubled the ceiling in its Global Trade Finance Programme (GTFP), allowing the World Bank affiliate to guarantee trade finance in emerging markets up to a total amount of US$1 billion on a revolving basis.

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Missouri man indicted in prime bank scam

A US jury has indicted a Missouri man for his role in a conspiracy to defraud approximately 120 investors of nearly US$3 million in a securities and wire fraud scheme.

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US sanctions force cash up front for Iranian L/Cs

Iranian buyers are required to put cash up front to obtain import letters of credit (L/Cs) as US sanctions imposed on the Islamic republic last year apparently bite into its economy and international trading ability.

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Bangladesh watches L/Cs in cartel and currency investigations

Letters of credit (L/Cs) are being closely monitored in Bangladesh where the authorities are concerned about cartels forcing up the prices of imported consumer essentials and foreign currency smuggling.

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UN disappointed by slow progress of L/Cs under Iraq's Oil-for-Food Programme

The United Nations Security Council (UNSC) has said it is disappointed with the Iraqi government's "slow progress" closing the remaining contracts and the associated letters of credit (L/Cs) under the Oil-for-Food Programme.

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L/C commissions boost Cathay's performance

Increased letter of credit (L/C) commissions have helped Cathay General Bancorp to its 13th consecutive year of double-digit earnings growth and record 2006 earnings of US$117.6 million.

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Liberia signs up to Global Trade Finance Programme

Liberia has become the latest West African country to sign up to the International Finance Corporation's (IFC's) largely letter of credit (L/C)-based Global Trade Finance Programme (GTFP).

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L/Cs support burgeoning US agricultural exports to Cuba

Fears that an order stipulating that US exporters must use letters of credit (L/Cs) if they sell to Cuba would stifle trade appear to be have been unfounded.

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Indian banks may call on Russian counterparts for improved L/C provision

An Indian business group is asking its government to urge Indian banks to talk to Russian banks with the aim of making letter of credit (L/C) transactions between the two countries more effective.

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Hong Kong's L/C graft buster to strengthen China connections

The Hong Kong-based anti-graft agency that has investigated and successfully brought charges against the perpetrators of some very substantial letter of credit (L/C) frauds centred on the former British colony plans to strengthen cooperation with agencies in mainland China.

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Dubai bank posts 41 per cent hike in L/Cs and guarantees

Commercial Bank of Dubai (CBD) has announced record results for the year 2006, enabling it to propose a generous cash dividend of 45 per cent to its shareholders.

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FMO shareholding Ghanaian bank bolsters L/C offering

The Netherlands Development Finance Company (FMO) has taken a 15 per cent equity stake in Guaranty Trust Bank (GT Bank) Ghana Limited.

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Bank of Asia expands mainland China trade cover

The Bank of East Asia (BEA) in December opened its latest branch on the Chinese mainland.

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Internet L/Cs feature in Union Bank's export awards

The Federation of Indian Export Organisations (FIEO) in New Delhi recently presented Union Bank of India with two awards for providing banking services that support the promotion of exports.

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IMF slams Sri Lanka for L/C intervention

The International Monetary Fund (IMF) has reclassified Sri Lanka's exchange rate regime from free float to managed float.

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HSBC relaxes collateral requirement for import L/Cs for Bangladeshi SMEs

HSBC in Bangladesh has launched a new facility to make it easier for small- and medium-sized enterprises (SMEs) to obtain import letters of credit (L/Cs).

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Jamaican bank wins IDB approval for L/C guarantee scheme

Jamaica's First Global Bank (FGB) has become the first bank in the country to secure a line of credit from the Inter-American Development Bank (IDB) that will make it easier for the bank to provide letters of credit (L/Cs).

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Civil servants jailed for L/C fraud

An Indian court has sentenced four people involved in a US$530 million letter of credit (L/C) scam in the Assam Veterinary Department.

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Quicker and easier access to L/Cs for Ugandan SMEs

Standard Chartered Bank-Uganda (StanChart) has launched a new facility to support the import and export operations of small and medium-sized enterprises (SMEs), including micro-businesses.

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Vietnamese government legislates to provide L/C guarantees

The Vietnamese government has issued a decree, primarily to support export credits for both domestic and foreign businesses.

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No L/Cs for Kenya's foreign exchange dealers

The Central Bank of Kenya (CBK) has issued new guidelines for foreign exchange dealers, allowing them to resume offering a range of services they were banned from providing last June. They will not, however, be able to offer letters of credit (L/C).

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Iran moves to Euro L/Cs

A top Iranian government official has urged businesses in Iran to open letters of credit (L/Cs) in euros in the future.

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Political strife hits Bangladeshi L/C business

The number of letters of credit (L/Cs) has fallen in the last six weeks in Bangladesh since a new government took charge of the country on a temporary basis.

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Delhi police uncover L/C fraud

Delhi Police have arrested three people who allegedly cheated several banks by mortgaging public land that they claimed to be their own.

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L/Cs feature in Ugandan textile scandal

Letters of credit (L/Cs) feature in an ongoing financial controversy in Uganda.

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China trade boosts US bank's L/C business

A US bank is reporting a significant increase in export letter of credit (L/C) business as local exporters write more and more business with China.

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US manufacturers say L/Cs still widely used

Businesses are shying away from letter of credit (L/C) transactions towards open account trading according to several sources, notably credit insurers, factors and purveyors of online L/C alternatives.

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Sanctioned Iranian bank switches from dollar-denominated L/Cs

The managing director of Iran's state-operated Bank Saderat says it is responding to US sanctions preventing other banks from doing US dollar business with it by writing deals in other currencies.

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India's Exim Bank supports agricultural equipment exports to Angola

The Export-Import Bank of India (Exim Bank India) has concluded an agreement with the government of Angola for a US$10 million line of credit (LoC).

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IFC strengthens trade finance ties in Bangladesh

The International Finance Corporation (IFC) says it plans to invest at least US$8 million in Bangladesh's banking sector through its Global Trade Finance Programme (GTFP), which centres on providing guarantees for letters of credit (L/Cs).

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China confirms foreign banks can handle L/Cs

The Chinese government has released detailed guidelines for foreign banks operating on the Chinese mainland.

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Trade finance activities help boost Gulf Bank's profits

Increased letter of credit (L/C) and guarantee business have contributed to an 18 per cent increase in profits in the nine months to 30 Septembercompared with the same period in 2005 at Gulf International Bank (GIB).

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Sri Lanka explains 50 per cent L/C margin

Senior Sri Lankan central bankers have been meeting with the country's senior financiers in a bid to explain the rationale behind several moves made by the Central Bank, including the imposition of a 50 per cent margin on some letter of credit (L/C) transactions.

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US Exim-Bank deal means bigger, cheaper export finance for Californian exporters

Exporters in California who need working capital to fulfil overseas orders can now more easily qualify for larger export finance loans with lower fees from City National Bank (CNB).

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EADS Subsidiaries and 22 Banks Go Live with HVB-@GlobalTrade Guarantee Platform

Toronto-based GlobalTrade Corporation (GTC) has formally announced that 36 subsidiaries of Airbus parent EADS and 22 banks have 'gone live' with its @GlobalTrade Guarantee Platform via a co-operation agreement between GTC and Germany's Bayerische Hypo-und Vereinsbank AG (HVB).

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BRAC bank of Bangladesh joins GTFP

The International Finance Corporation (IFC) has announced that BRAC Bank, which specialises in the small- and medium-sized enterprise banking market in Bangladesh, has joined its Global Trade Finance Programme (GTFP).

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Exporters demand more Nigerian banks in West African countries

Ghanaian exporters are calling for more Nigerian banks to open up in other West African countries in order to facilitate speedier letter of credit (L/C)-based export business transactions.

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Banks sign agreement to provide Islamic L/C requirements

Dubai-based Emirates Islamic Bank (EIB) and Bahrain-based Albaraka Banking Group (ABC) have signed a memorandum of understanding (MoU) to strengthen their relationship and raise the profile of Islamic products.

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Iran eliminates L/C requirement for hard currency receipts

Iranian exporters no longer need to open letters of credit (L/Cs) to obtain hard currency loans from the Export Guarantee Fund of Iran (EGFI) according to its managing director.

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Reserve Bank of India sets import L/C ceiling

The Reserve Bank of India (RBI) has issued new rulings meant to stimulate growth after a thorough review of credit policy.

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L/Cs credited for narrowing Bangladesh's trade deficit with India

Increased availability of letters of credit (L/Cs) appears to have contributed to a very significant rise in exports from Bangladesh to India.

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Dubai picks up Iranian L/C business from international banks

Dubai appears to be benefiting from Washington's targeting of Iran's banking sector, which US officials say is a response to the Islamic republic's support for terrorism and its nuclear ambitions.

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Former Hong Kong listed company chairman served extra time for HK$57m L/C fraud

The former chairman of a Hong Kong listed public company has been sentenced by a court in the former British colony to an additional 27 months' imprisonment for his role in defrauding banks of HK$57 million in letters of credit (L/C) facilities based on bogus business transactions.

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UCP 600 approved

UCP 600 - the sixth revision of the Uniform Customs and Practice for Documentary Credits since they first appeared more than sixty years ago - has been approved.

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IFC's Global Trade Finance Programme scores 500 transactions

The International Finance Corporation (IFC) has announced that its Global Trade Finance Programme (GTFP), which centres on providing guarantees for letters of credit (L/Cs), has notched up its 500th transaction.

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Kenya gets tough on maritime L/C frauds

Rising cases of maritime fraud have prompted the Kenya Ports Authority to organise special training on combating such scams for its managers.

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IFC's Global Trade Finance Programme goes to China

The International Finance Corporation (IFC) has announced that China Construction Bank Corporation (CCBC) has become the first bank in China to join its letter of credit (L/C)-oriented Global Trade Finance Programme (GTFP).

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Guilty plea in US standby L/C scam

A US man has pleaded guilty to federal obstruction of justice charges in connection with an alleged US$3 million securities scam that involved investors in the US, Australia and South Korea.

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Relations between Islamic and conventional banks in L/C transactions

Relationships between Islamic banks and conventional banks in letter of credit (L/C) transactions are discussed in some detail on the Greater Kashmir web site.

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Facility to ease collateral requirements for Iraqi L/Cs

A new facility arranged for the Trade Bank of Iraq (TBI) will allow commercial lenders to extend letters of credit (L/Cs) in Iraq that are not fully cash collateralised.

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Ex-Im Bank denies break in L/C transactions for Ghana

An official of the Export and Import Bank of the United States of America (Ex-Im Bank) has denied reports that it withdrew cover for letter of credit (L/C) and other business for Ghana around six years ago, only to reinstate normal cover for both public and private sector companies at a later date.

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Multi-bank platform prepared for take off

"Corporates want to have multi-bank platforms," says CEO of Globaltrade Corporation (GTC), Jacob Katsman, who is now able to claim that 25 banks are using the Canadian company's @GlobalTrade platform technology, which includes letter of credit (L/C) applications.

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Former police chief jailed for BNI fraud

A former senior policeman who in 2004 led the investigation into the massive letter of credit (L/C) frauds involving state-owned Bank Negara Indonesia (BNI) has been sent to jail for accepting bribes.

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Wachovia bolsters Yes Bank's trade offering

India's Yes Bank has signed a currency-loan agreement with the US-based banking and financial services provider, Wachovia Corporation.

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HSBC aims to extend L/C reach in the Philippines

Having recently extended its trade services in one of the Philippines most promising business districts, banking giant HSBC now says it wants to extend its presence in the country where it writes significant amounts of letter of credit (L/C) business.

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Stanchart improves e-banking services

Standard Chartered Bank says it has made improvements to its e-banking services, with the aim of providing more customers with faster online access without compromising security or privacy.

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Saudi L/C business increases substantially to finance imports

A Saudi Arabian economist has described how letter of credit (L/C) business has increased significantly in the kingdom this year.

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Washington follows up move to stem Iranian L/C flows

In a move to curb what US officials allege to be Iran's support for terrorism, the US Department of the Treasury has announced that Iran's Bank Saderat is being cut off from all access to the US financial system, direct or indirect.

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L/C features in groundbreaking Russian Shar'iah financing

A standby letter of credit (L/C) is a key feature in an innovative Shar'iah-compliant facility arranged for Globexbank in Moscow.

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Indian exporters say Bangladeshi L/Cs are dishonoured

Indian traders are complaining that letters of credit (L/Cs) for exports to Bangladesh are not being honoured.

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HVB tries multiple bank online L/C platform

Germany's Bayerische Hypo-und Vereinsbank (HVB) is hosting an online letter of credit (L/C) platform that can be used by corporate clients that do not want to be limited to using HVB but do want can connect to all their banks.

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Qatar's Commercialbank introduces Internet trade finance service

Doha-based Commercialbank has announced the launch of a new service enabling corporate clients to carry out trade transactions entirely online using the bank's Corporate Internet Banking (CIB) platform.

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HSBC tie up with New India Assurance touts L/C alternative

HSBC has announced a tie up with the Indian government-owned, non-life insurer New India Assurance Company Limited.

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Azerigazbank and IFC issue first foreign L/C

Azerigazbank (AGBank) and the International Finance Corporation (IFC) have concluded for the first time in Azerbaijan an international trade finance transaction involving the issuance of a letter of credit (L/C) in favour of foreign companies.

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L/Cs feature in BankMuscat's new SME division

Bahrain-based small- and medium-sized enterprises (SMEs) will soon be served by a business division specifically geared to their needs at BankMuscat International according to a statement released this week by the bank.

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Citigroup presents convenient L/C windows

Global Transaction Services (GTS), a business unit of Citigroup serving middle market US businesses, has announced the opening of two Trade Service Windows (TSWs).

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Trade finance not top priority for East African Development Bank

The East African Development Bank (EADB) is one of several development banks worldwide to recognise that trade finance programmes, often involving letters of credit (L/Cs), can be very useful tools for integrating emerging economies in global markets.

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Jail for L/C arranging fraudster

A Singaporean man has been jailed for four and a half years for promising to arrange letters of credit (L/Cs) for a Taiwanese businessman.

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Four years for energy trader who used L/C to cheat employers

A court in Indonesia has jailed an energy trader who used a letter of credit (L/C) to cheat his employers of US$8 million.

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Hong Kong bank targets Shanghai L/C business

The Bank of East Asia (BEA) has opened a new sub-branch in Shanghai Xujiahui on the Chinese mainland.

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Bankers confident Lebanese L/Cs will return

Lebanese bankers are confident that the country's banking sector will come out of the crisis precipitated by Israel's month long military campaign against Hezbollah.

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Malaysian MD on trial for L/C fraud

The managing director of a Malaysian timber company is to face trial for his alleged participation in a letter of credit (L/C) fraud.

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Rome Convention reforms threaten European L/C business

The UK's Financial Markets Law Committee (FMLC) has warned that if proposed European Commission (EC) reforms to the Rome Convention are adopted, this could result in legal uncertainty for letter of credit (L/C) contracts.

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Stanchart suggests replacing L/Cs with supply chain financing

Standard Chartered Bank (Stanchart) is embarked on a campaign to persuade some customers to switch from letter of credit (L/C) financing to what they describe as supply chain financing.

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No charges, no job for bank president implicated in L/C irregularities

An Ethiopian bank president has been released from jail where he was being held on suspicion of corruption in a multi-million US dollar letter of credit (L/C) deal.

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Kuwaiti oil stranded by delayed L/Cs

Oil tankers loaded with Kuwaiti oil have refused to deliver their cargo to the Bangladesh Petroleum Corporation (BPC) unless foreign banks guarantee letters of credit (L/Cs) opened by the state-owned oil importer.

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L/Cs from Singapore support sales of stolen Indonesian timber

The illegal logging and smuggling of merbau timber from Papua involves a complex web of international middlemen, timber barons and financial backers in several countries, according to an Indonesian foundation involved in environmental matters.

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Suspicious L/Cs take the blame for Bangladesh's currency depreciation

Bangladesh Bank is investigating 50 branches of different commercial banks for suspicious transactions as a part of its anti-money laundering drive.

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Israeli strikes on Lebanon hit L/C traders

Traders with Lebanon using letters of credit (L/Cs) are being adversely hit by the violent conflict that has erupted in the country according to a leading Canada-based Lebanese businessman.

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Iraqi oil flow awaits L/C

Deliveries of Iraqi oil by pipeline to a Turkish refinery have been on hold for a year for security reasons.

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Solicitor and four others jailed in false standby L/Cs case

A solicitor and four other people have been sentenced by a Hong Kong court to jail terms of up to six years for their roles in fraudulent schemes that used bogus standby letters of credit (L/Cs) to swindle HK$5.93 million (DC World News, 10 July 2006).

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HSBC launches Internet Trade Services

HSBC Vietnam has introduced its Internet Trade Services (ITS), an online import/export trading service to help its clients conduct international business transactions.

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Bangkok governor ordered to sign-off L/C deal

The elected governor of Bangkok, Apirak Kosayodhin, has held a press conference to fend off his critics who say that a letter of credit (L/C) he authorised facilitated a controversial deal to buy overpriced fire-fighting equipment from an Austrian firm (DC World News, 3 May 2006).

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5,000th transaction marks new record for EBRD initiative

The European Bank of Reconstruction and Development (EBRD) has processed its 5,000th transaction under its apparently very successful L/C-based Trade Facilitation Programme (TFP).

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Three convictions in HK$5.9 million false standby L/C fraud

A solicitor is amongst three people convicted in a Hong Kong court for their roles in a fraudulent scheme to swindle HK$5.93 million with bogus standby letters of credit (L/Cs).

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Iran approves rial L/C issuance

The Central Bank of Iran (CBI) has approved the issuance of letters of credit (L/Cs) in Iranian rials in a bid to diversify trade exchanges and maintain the value of the domestic currency.

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L/C fraud suspected as China gets tough on listed companies

A business executive has gone on trial for allegedly perpetrating a contract fraud that involved persuading one of China's largest companies to open letters of credit (L/Cs) for copper shipments.

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US Ex-Im Bank to launch online L/C insurance soon

The US' Export-Import Bank (Ex-Im Bank) has launched a new interactive web-based service that will soon allow US small businesses to obtain letter of credit (L/C) insurance online.

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Sentence too lenient for serial fraudster in Bank Negara Indonesia L/C scam

A former banker with a previous conviction for fraud has been sentenced to 20 years in jail for his part in the US$200 million Bank Negara Indonesia (BNI) letter of credit (L/C) scam uncovered three years ago. (DC World News 4 November 2003).

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L/Cs for UAE-China trades in Standard Chartered package

Cut-price letters of credit (L/Cs) feature in a package developed by Standard Chartered designed to win business from UAE-based small- and medium-sized enterprises (SMEs) doing business one way or another with China.

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Investors cautioned on L/C withdrawal in political hotspots

Investors should beware of banks refusing to issue letters of credit (L/Cs) to natural resource companies operating in politically volatile countries where leaders are threatening to nationalise metal and mineral resources.

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New application supports L/C automation for companies

Europe's largest software house, SAP AG, has unveiled a new version of its Global Trade Services (GTS) software, which is aimed at large global companies involved in international trade.

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L/Cs may feature in Indian political rows

The use of letters of credit (L/C) in questionable deals involving some of India's top politicians and contractors working in and around the massive Bangalore-Mysore Infrastructure Corridor (BMIC) economic development area may re-emerge as rival politicians seek to discredit each other.

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Jail for mortgage fraudster who falsified L/Cs

A fraudster who incorporated fake letters of credit (L/Cs) in a mortgage scam in the US has been sentenced to four years in jail.

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Iranian L/Cs slowing up

Pressure from Washington on banks to think twice about writing letter of credit (L/C) business with Iran is working, according to a report in the globally read Time magazine.

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Indian daily highlights late detection of fraud

One of India's leading business dailies has highlighted instances where banks have lost court cases involving letter of credit (L/C) fraud.

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L/C condition could hamper exporters in the Philippines

Legislators in the Philippines currently drafting an anti-smuggling bill are considering making it mandatory for manufacturing exporters to put up letters of credit (L/Cs) if they want to withdraw from Customs the parts, components and raw materials they need to make goods for exports.

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Daewoo founder faces jail sentence

The former chairman and founder of South Korea's troubled electronics and industrial giant, Daewoo, has been sentenced to a 10-year jail term for accounting fraud and embezzlement.

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More Latin American banks for IDB trade finance programme

The Inter-American Development Bank (IDB) says it expects eight new Latin American issuing banks to sign up to its largely letter of credit (L/C)-based trade finance facilitation programme (TFFP).

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Citibank India's small business programme

Citibank India has introduced a new package specifically to fit the needs for small businesses with annual turnovers of up to Rs50 million (around US$10 million).

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L/Cs could help solve Russia's M&A problems

Letters of credit (L/Cs) could solve one of several problems facing investors contemplating mergers and acquisitions (M&A) in Russia as it acclimatises itself to the commercial realities of buying and selling listed companies after years of Communism with its state enterprises, according to a Moscow-based lawyer.

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Banks mull Iranian prospects as sanctions loom

Four of Europe's biggest European banks have started to curb their activities in Iran, even before the UN Security Council decides on a resolution to impose economic sanctions on Iran over nuclear ambitions, according to the New York Times.

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Former chairman of Hong Kong company jailed for HK$94 million L/C fraud

The former chairman of a de-listed Hong Kong company has been jailed for four and a half years' for his part in a HK$94.6 million letter of credit (L/C) fraud based on bogus business transactions.

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L/Cs limited as Chinese metal buyers face cash shortage

Soaring demand and high prices for metals are diminishing profit margins for Chinese metal-using firms, prompting banks to fear that cash strapped metal buyers may add to the heavy bad debt burden already borne by Chinese banks.

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First Nicaraguan bank joins Latin American and Caribbean trade programme

The Inter-American Development Bank (IDB) has announced that the Banco de Crédito Centroamericano (Bancentro) has become the first Nicaraguan issuing bank in its Trade Finance Facilitation Programme (TFFP).

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Arab Bank outsources to Dubai

By Mark Ford

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Investors want more legal action against fraudsters in L/C investment scam

A financial advisor and several others implicated in an investment scam incorporating standby letters of credit (L/Cs) still face the prospect of trial in the Canadian courts, even though the Royal Canadian Mounted Police (RCMP) decided not to prosecute some of them.

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Pakistan may impose L/C duty increase

Pakistan's tax authority is lobbying the finance ministry to announce the imposition of excise duty of 7.5 per cent on financial services in the 2006-07 budget to be presented to the National Assembly on 5 June.

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L/Cs permitted in Canadian pension plan solution

Letters of credit (L/Cs) can now be employed by private pension schemes of companies in Canada struggling with hundreds of millions of dollars in shortfalls in their defined-benefit pension plans.

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Bangkok governor faces questions over L/C opening

The elected governor of Bangkok, Apirak Kosayodhin, is under pressure to explain his role in a row that has broken out concerning the Bangkok Metropolitan Administration's (BMA's) purchase of fire-trucks and boats last year.

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US authorities fail to use L/C safeguard

Local authorities in the US routinely ask property developers to open standby letters of credit (L/Cs) to guarantee that they build properties that meet legal standards or the specific requirements of planning permissions. If the developer fails to meet its obligations, then the L/C should be cashed or renewed.

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Company director admits HK$49m L/C fraud

Hong Kong's Independent Commission Against Corruption (ICAC) has successfully prosecuted a director and shareholder of a trading company for frauds involving over HK$49 million worth of letters of credit (L/Cs) in bogus business transactions.

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Ministries to sort out problems with L/Cs for Bangladeshi fuel imports

Officials from the finance ministry in Bangladesh are to meet their counterparts in the energy and minerals resources ministry to discuss problems encountered by Bangladesh Petroleum Corporation (BPC) while trying to open letters of credit (L/Cs) for fuel imports.

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Former Nepalese bank officials face fraudulent L/C charges

Nepalese investigators have charged several former bank officials with misappropriating funds worth hundreds of thousand of US dollars.

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Vietnamese and Chinese banks sign cross-border payment agreement

The Bank for Agriculture and Rural Development of Vietnam (Agribank) branch in northern Quang Ninh province has signed an agreement on cross-border payment co-operation with the Industrial and Commercial Bank of China's (ICBC's) Guangxi branch.

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India defines role for power sector L/Cs

The Indian authorities have defined the role letters of credit (L/Cs) will play in financing arrangements between independent power producers (IPPs) and the state electricity boards that purchase power from them.

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Bolero goes for Chinese trade finance business

Bolero, the online platform and rulebook provider for electronic trade financing, says it has signed a strategic initiative with a Chinese state-owned import and export logistics company with the aim of capturing market share in China's fast growing trade finance market.

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Soaring gold prices inspire L/C assisted bullion scams

A Johannesburg court has been hearing how standby letters of credit (L/Cs) are making an appearance in scams inspired by soaring gold prices.

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L/C backlog after SBI pension strike

A one-week strike over pensions at the monolithic State Bank of India (SBI) has created havoc for Indian businesses and their international trading partners.

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Reserve Bank of India fines bank for L/C failures

The Reserve Bank of India (RBI) has fined Jammu and Kashmir Bank (JKB) 500,000 rupees (around US$11,000) for failing to ensure adequate and effective arrangements when the bank arranged letter of credit (L/C) facilities for one of its customers.

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Equestrians lose out as L/C fails

The issuer of a US$1,050,000 million letter of credit (L/C) meant to have guaranteed the earnings of riders, officials and workers at a prestigious US equestrian event says it is not responsible for payment.

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Bank of New York to provide L/C technology to Rabobank

The technologically savvy Bank of New York (BoNY) is to provide processing and technology services to Rabobank Nederland to help process its letter of credit (L/C) business.

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TradeCard's L/C and open account systems suit fails

A federal jury in the US has found that Bank of America (BofA) and the financial and payments solution provider S1 Corporation are not infringing a patent in their banking and payments software.

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Banks sell L/Cs to Rosneft as Yukos disintegrates

A consortium of western creditor banks of the failing Russian oil company, Yukos, have sold letters of credit (L/Cs) worth US$482 million to another Russian hydrocarbon giant, Rosneft.

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Assets confiscated as investigators target bankers in BNI L/C fraud

Police investigating the multi-million dollar letter of credit (L/C) fraud at state-owned Bank Negara Indonesia (BNI) have confiscated assets valued at around US$1 million from a suspect.

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Guilty plea in mortgage fraud

A Colorado real estate agent has pleaded guilty to wire fraud and money laundering in a mortgage scam that incorporated the illicit use of letters of credit (L/Cs).

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US State Department says L/Cs instrumental in Far Eastern narcotics trades

A US State Department report says letters of credit (L/Cs) are playing a very large part in the Far Eastern illegal drugs trade.

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Foreign banks active in Vietnam's L/C market

With Vietnam's commercial banks ready for the first time ever to raise capital by selling shares to foreign banks later this year, nearly three dozen foreign banks have already established a presence in this modestly growing Asian market, according to a report in a state-owned English language e-newspaper.

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China issues regulations for trying L/C disputes in court

China's Supreme People's Court has promulgated Regulations of the Supreme People's Court on Relevant Issues on Trying Cases of Letter of Credit Disputes, effective as of 1 January 2006.

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HSBC rolls out Chinese documentary credit advising service with local partner

HSBC has become the first foreign bank in China to offer documentary credit (D/C) advising services in partnership with a local Chinese bank.

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Russia's auto-giant establishes new L/C settlement system

Russia's automobile giant, AvtoVAZ, is establishing new system of mutual settlement with its dealers.

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L/C familiarity underpins Australian exports to India

Australian exports to India have more than trebled since the Asian giant liberalised its trade policies in 1991, according to a report in one of Australia's oldest broadsheets.

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Bolero reports progress and closure of internal funding round

Bolero, the electronic platform and rulebook on which online letter of credit (L/C) transactions can take place, has announced that eight major and regional banks are now live with the company's multi-bank programme.

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Nigeria's U-turn on new L/C arrangements

The Central Bank of Nigeria (CBN) has issued clarifications and amendments to its 30 December 2005 circular on import guidelines, procedures and documentation requirements under documentation inspection.

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Kenyan concerns over Dubai's L/Cs for tea offer

Allegations of corruption within the Kenya Tea Development Agency (KTDA) and dissatisfaction amongst the East African country's tea growers with the agency responsible for around two-thirds of Kenyan tea exports are contributing to a crisis within Kenya's tea industry.

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First Bangladesh deal for IFC's L/C programme

The International Finance Corporation (IFC) has concluded the first transaction in Bangladesh under its Global Trade Finance Programme (GTFP).

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Institutional support for L/Cs in Indian infrastructure projects

India's Infrastructure Development Finance Company Ltd (IDFC) has signed a memorandum of understanding (MoU) with Bank of Baroda with the aim of enhancing finance and banking services to support the development of India's infrastructure.

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India mulls L/Cs for private power producers

India's state electricity boards (SEBs) may be asked to open letters of credit (L/Cs) in favour of independent power producers as the country looks towards the private sector once more to provide electricity.

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Thais fail to grasp L/C security in deals with China

The free trade agreement (FTA) struck between Thailand and China in October 2003 is failing to deliver the benefits Thai exporters expected.

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Nigeria slams discriminatory L/C treatment

The Nigerian authorities have criticised the international business community for what they perceive to be discrimination on its insistence on cash-backed letters of credit (L/Cs) from Nigerian importers.

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India complains of L/C non-payment by Bangladeshi banks

Indian exporters are blaming institutional inefficiencies for a 30 per cent fall in exports to Bangladesh.

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Euro payment area threat to L/C volumes

Trade financiers anticipate fewer letters of credit (L/Cs) when cross-border payments between European countries that ditched domestic currencies in favour of the euro effectively become domestic payments under the Single Euro Payments Area (SEPA).

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Turkish companies demand L/Cs for trade with Iraq

Turkish companies say they are writing an increasing amount of business with customers in northern Iraq.

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US dollar record prices for Bangladeshi L/Cs

Bangladesh is facing a deepening currency crisis, caused primarily by the sharply higher cost of petroleum imports. The crisis is pushing the price of US dollar denominated letters of credit (L/Cs) up to a record high, with a rate of 69.25 Taka (Tk69.25) reported at the end of January for opening new credits.

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Maltese bank first in IFC trade finance programme

A Maltese bank specialising in trade finance says it has become the first bank worldwide to be granted both confirming and issuing bank status in the International Finance Corporation (IFC's) recently launched letter of credit (L/C) oriented programme to make trade finance easier to access for emerging market trades.

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HypoVereinsbank joins the Bolero bandwagon

Another major bank has decide to use Bolero, the online platform and rulebook for electronic trade, to provide letter of credit (L/C) support for its customers.

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L/Cs used to prime auction scam

A British fraudster has been jailed for swindling more than a million pounds of paintings out of the world famous Christie's auction house.

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Factors target Vietnamese L/C market

An organisation representing international factoring companies has been in Vietnam this month, pressing the case for businesses to use factoring rather than letters of credit (L/Cs).

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L/C guarantees may play part in hurricane rescue plans

Partial letter of credit (L/C) guarantees may have a role to play in state support for businesses and local governments in parts of the US' south that suffered from last year's devastating Katrina and Rita hurricanes.

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Two indicted in the US on standby L/C fraud

A US federal grand jury has now indicted two District of Columbia residents on fraud charges related to a case that allegedly employed bogus standby letters of credit (L/Cs) to defraud investors.

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Bangladesh orders new L/C controls in clamp down on import scams

The authorities in Bangladesh have issued new orders saying banks must submit copies of import letters of credit (L/Cs) for food imports and importers of knit yarn must use back-to-back L/Cs in all transactions.

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Chinese to establish bank in Nigeria to overcome L/C problems

Investors from China say they plan to open a bank in Nigeria specifically to enable letter of credit (L/C) transactions between the two countries.

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Vietnamese and Chinese banks ink L/C deal

One of Vietnam's fast growing breed of joint stock banks has joined up with one of China's big four commercial banks with the aim of providing superior trade finance services.

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Bangladeshi banks sign up to IFC trade programme

The International Finance Corporation (IFC) has announced that two banks in Bangladesh have joined its recently introduced scheme to boost global trade by making letters of credit (L/Cs) more widely available.

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Former Komercni Banka chief charged in L/C fraud case

New charges have been brought by Czech prosecutors against the former head of the Komercni Banka (KB) department for funding bank operations.

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Reserve Bank of India promises tougher ombudsmen

As of 1 January 2006 the Reserve Bank of India (RBI) says banking ombudsmen will have more power to summon bank officials and issue directives to resolve customer complaints, including those concerning letters of credit (L/Cs).

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Creditors to receive around 60 per cent of defaulted Iraqi L/Cs

Commercial creditors holding letters of credit (L/Cs) that defaulted under Saddam Hussain's regime in Iraq have agreed to a settlement entitling them to around 60 per cent of the face value of the credits.

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ABN Amro fined for L/C transactions with Iran and Libya

Dutch bank ABN Amro has been ordered by US officials to pay fines totalling US$80 million for transactions that US banking regulators say violated money-laundering laws and sanctions imposed on Iran and Libya.

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Police chief faces bribery allegations in Indonesian L/C scam

The former chief of Indonesia's National Police criminal investigation bureau faces allegations of accepting at least one bribe while investigating the multi-million dollar letter of credit (L/C) scam at state-run Bank Negara Indonesia (BNI).

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Cameroon to pioneer new L/C-based investment guarantees

Cameroon is to become the first African state to pioneer a new initiative launched by the International Private Infrastructure Association (IPIA) meant to arrest the decline in investment in infrastructure projects in emerging markets.

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HSH Nordbank adopts Bolero electronic L/C platform

One of northern Europe's largest regional banks has become the latest in a string of banks to announce that it is working with Bolero to provide its corporate customers with an electronic platform capable of communicating letter of credit (L/C) applications and advices between it and its customers.

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South American cut price L/Cs surprise bankers

Bankers have told a well-regarded trade finance journal that pricing for Latin American letter of credit (L/C) confirmation has fallen sharply over recent months, and margins appear very slim given the levels of risk in the region.

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Indian banks cautious on L/C business with Pakistani banks

Relations between banks in India and Pakistan are improving as a result of the two-year peace process between the two nuclear rivals that have fought two wars over the disputed Kashmir region since independence in from Britain in 1947.

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Bangladesh's tougher L/C checks to cut militants' funding

A spate of suicide bombings in Bangladesh last week has apparently prompted the government to push for changes to its Money Laundering Act with the aim of blocking funding for the militant groups thought to be responsible for the attacks.

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Czech bank executives acquitted in ghost L/C case

A Czech court has acquitted nine former executives of Komercni Bank (KB) charged with violating banking obligations in connection with suspicious deals that may have cost the bank the equivalent of around US$250 million.

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German export guarantees for Iraqi L/Cs

The Trade Bank of Iraq (TBI) has announced the completion of an agreement with the German government to guarantee exports from Germany to Iraq.

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Indian development bank ties up with L/C providers

The development bank tasked with making finance more available to the tiny village and cottage industries that form a significant slice of India's economy is forging ties with commercial banks in order to expand its reach and range of products.

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EBRD launches new L/C guarantee for Turkmenistan

The European Bank for Reconstruction and Development (EBRD) is making US$500,000 a year available to the Ashgabat branch of the National Bank of Pakistan (NBP) in Turkmenistan to guarantee trading operations of private businesses.

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IMF prescription for L/Cs hammered

An International Monetary Fund (IMF) delegation visiting Bangladesh has come under fierce attack from the country's finance and planning minister, Saifur Rahman, who has severely criticised what he describes as the multilateral agency's wrong prescriptions and policies.

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Dresdner signs up to Bolero

Bolero has announced it is to work with Dresdner Bank with the aim of providing the bank's corporate customers with an electronic gateway to all their trade finance transactions, including letters of credit (L/Cs).

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Bank of Baroda loses Dubai L/C appeals

A Dubai court has ordered the Bank of Baroda to pay up on a letter of credit (L/C) guarantee that has been in dispute for around six years.

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Iraqi bank sees Syrian trade finance opening

A privately owned Iraqi bank has set up shop in Damascus because it wants to participate in the opening up of trade flows between Syria and Iraq.

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L/Cs employed in complex Dominican fraud case

A US court has found one of the Dominican Republic's most powerful financiers liable in a conspiracy and fraudulent money transfer case in which letters of credit (L/Cs) from a failed bank were used as collateral to obtain loans.

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L/Cs feature in India's drive for private sector power investors

India is inviting bids from commercial companies across the world to build 20,000 megawatts (MW) of independent power projects (IPPs).

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Bank of China's Hong Kong branch automates L/Cs with SmartStream

One of Hong Kong's leading commercial banking groups in terms of assets and customer deposits has opted for to use SmartStream Technologies to automate letter of credit (L/C) and other trade finance functions.

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Standard Chartered Bank ties up with India's Oriental Bank of Commerce

One of India's fast growing commercial banks has tied up with Standard Chartered Bank (SCB) to improve the standards of its trade finance services, including letters of credit (L/Cs).

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Wachovia sues Lloyds in Solo suit

One of the largest providers of financial services in the US is to sue several insurance companies for refusing to cover claims related to the massive Solo Industries frauds that were uncovered in the late 1990s.

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Singapore's enterprise agency pushes L/C alternative

An official agency in Singapore says it is to launch a trade credit insurance programme that will allow the firms it supports to compete more effectively in global markets than those employing letters of credit (L/Cs).

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ING opts for Bolero L/C support

Part of one of the world's largest financial institutions has opted for Bolero, the online platform and rulebook for electronic trade, to provide letter of credit (L/C) support for its corporate customers.

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India says banks can issue L/Cs to textile firms

The Reserve Bank of India (RBI) has allowed the banks to issue guarantees or standby letters of credit (L/Cs) to textile companies raising external commercial borrowings (ECBs).

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BNP Paribas defends against criticism in UN oil-for-food programme

BNP Paribas, the bank that handled all letters of credit (L/Cs) under the UN's oil-for-food programme has refuted allegations made against it in the recently published US inquiry that says several major firms were involved in surcharges and kickbacks related to humanitarian goods shipped to Iraq.

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Iran blocks L/Cs from South Korea, the UK, Argentina and the Czech Republic

Iran is blocking letters of credit (L/Cs) for companies from South Korea, Britain, Argentina and the Czech Republic, according to newspaper reports in those countries.

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Dubai uses L/Cs to woo tea merchants from Kenya

Representatives of the newly conceived Dubai Tea Trading Centre (DTTC) have been causing some anxiety amongst officials and traders using Kenya's leading tea trading centre, the Mombasa Tea Auction.

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US accounting watchdog finds KPMG errors in L/C reporting

The US federal regulator of public accounting firms has uncovered some serious errors in audit work undertaken by one of the world's largest auditors.

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TradeCard boss says banks too slow to reform L/Cs

The CEO of New York-based TradeCard, Kurt Cavano, continues his campaign to topple letters of credit (L/Cs) as a preferred method of international payment.

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Clinton initiative backs L/Cs for poverty reduction

Former US President Bill Clinton's recently launched global initiative is backing a new programme that aims to make as much as US$50 million available in credit guarantees to microfinance institutions supporting small businesses in some of the world's less developed markets.

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IFC announces first L/C in Global Trade Finance Programme

The International Finance Corporation (IFC) says it has completed its first transaction under its US$500 million Global Trade Finance Programme (GTFP).

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L/Cs feature in ABN Amro's new online corporate banking facility

ABN Amro has introduced a new Internet banking service called Access Online, targeted at its international corporate market segment.

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BNI directors targeted in L/C fraud probe

More than a year after their investigations into the massive letter of credit (L/C) fraud at Bank Negara Indonesia (BNI) began, police say they are now directing their attention to the bank's board of directors.

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Home shopping giant signs up for Tradebeam

The world's third largest home shopping company has signed an agreement to use several applications developed by Tradebeam.

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Thirteen banks sign up to trial SwiftNet Trade Services Utility

Thirteen trade banks have signed up to pilot the SwiftNet Trade Services Utility (TSU). They are ABN AMRO, BNP Paribas, Calyon, Citigroup, Deutsche, First Rand Bank, HSBC Group, JPMorgan Chase, KBC, The Royal Bank of Scotland, San Paolo IMI, Standard Bank of South Africa and The Bank of Tokyo-Mitsubishi.

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US$3.1 million standby L/C fraud uncovered

The FBI has arrested a Columbian man this week in connection with an allegedly fraudulent investment scam that promised ultra-high returns, but apparently succeeded only in defrauding would be investors of at least US$3.1 million.

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India to allow L/Cs for gold imports for domestic jewellery

The Reserve Bank of India (RBI) has decided to allow jewellery manufacturers supplying the domestic market to obtain loans using letters of credit (L/Cs) or bank guarantees to import gold. Such loans have until now been restricted to manufacturers of jewellery for export.

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Iran backs Venezuelan L/C deals in trade and investment drive

Venezuela has so far opened letters of credit (L/Cs) worth US$10 million for private Iranian companies to create small-scale industries in the South American country, according to a senior official at Iran's Small-scale Industries and Industrial Townships Agency (SIITA).

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OPIC guarantees Iraqi L/Cs for US exporters

The US government's Overseas Private Investment Corporation (OPIC) has approved a US$150 million in financing for a US trust facility that it says is established to support efforts by the new Trade Bank of Iraq (TBI) to rebuild the Iraqi economy.

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Bolero announces 'major' L/C solution through Australia's Westpac

Bolero, the online platform and rulebook for trade financing transacted over the Internet, has announced that one of Australia and New Zealand's leading banking groups has successfully implemented an electronic Letter of Credit Advise (L/CA) solution for what it describes as "a major Australian exporting organisation."

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J P Morgan signs up for IFC's Global Trade Finance Programme

J P Morgan Chase has said it has joined the International Finance Corporation's (IFC's) Global Trade Finance Programme (GTFP).

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L/Cs from Korea for massive Romanian-built ship deal

Korean Development Bank (KDB) has announced a letter of credit (L/C) based deal that will enable the Daewoo Mangalia Heavy Industries Shipyard (DMHIS) in south-eastern Romania to undertake a major new order worth half a billion US dollars.

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China recommends irrevocable L/Cs in deals with Nigeria

Chinese traders should use third country irrevocable L/Cs in trades with Nigeria.

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Indian investigators revive multi-million US dollar L/C scam

India's Central Bureau of Investigation (CBI), has revived an alleged US$90 million letter of credit (L/C) scam in which several senior politicians in the Asom Gana Parishad (AGP - Assam Peoples Association) party are implicated.

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L/C troubles obstruct Indonesia's petroleum supplies

Indonesian banks' reluctance to issue letters of credit (L/Cs) to Indonesia's state-owned oil firm Pertamina is obstructing imports of petroleum products from Saudi Arabia.

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India's banks wary of L/Cs from China

India's public sector banks (PSBs) remain wary of dealing with Chinese banks in letter of credit (L/C) transactions according to a report in a well-regarded financial daily.

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Bangladeshi agents say L/Cs used in money laundering

Indenting agents, who act on behalf of exporters to Bangladesh, are calling on the government to ban a system whereby importers can open letters of credit (L/Cs) to buy goods direct from other countries.

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Stamp duty on L/Cs diverts business from Cyprus

Stamp duty on letters of credit (L/Cs) is one of several burdens making it difficult for Cypriot businesses adjusting to life within the European Union according to local business leaders.

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Support for L/Cs helps boost Iran's exports

Iran has recorded improved trade balances with 100 countries in the fiscal year 2003-04, due in part to government interventions that include support for letters of credit (L/Cs).

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L/C support for Organisation of the Islamic Conference members

The Islamic Corporation for Insurance of Investments and Export Credits (ICIEC) has recently introduced a new documentary credit insurance scheme for exporters in its member countries.

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HSBC extends L/C reach in China

Global banking giant HSBC has opened its 12th branch on mainland China, thus extending the availability of its letter of credit (L/C) facilities in this massive, fast growing and newly opened market.

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Korea proposes system to streamline letters of credit

South Korea is making a concerted effort to migrate traders from paper-based to electronic letters of credit (L/Cs).

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Daewoo boss faces L/C fraud charges

The former chairman of Korea's collapsed electronics and industrial giant, Daewoo, has appeared in a Seoul court on charges of fraud.

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ABN Amro wins Groupe Caisse d'Epargne outsourcing mandate

ABN AMRO has announced that it is to provide outsourced and white-labelled trade services to Groupe Caisse d'Epargne (GCE), one of France's largest financial services institutions.

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Online L/Cs work says finance manager

Online trade finance services are working well according to company executives interviewed recently in a monthly financial journal.

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Plane crash reveals L/C investment mystery

A US businessman based in Connecticut who died last year in a suspicious plane crash allegedly used letters of credit (L/Cs) to swindle senior citizens out of millions of US dollars.

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Bangladeshi banks co-operate to make L/C payments

Ten major dealer banks in Bangladesh have decided to co-operate to ensure that they can meet letter of credit (L/C) payments as the country faces a shortage of US dollars.

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Banks in the UK improving online L/C services

Several UK banks are gearing up the level of their trade finance offerings, including letter of credit (L/C) services, according to a recent survey.

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Improper L/Cs in Czech fraud investigations

Czech police are investigating losses in Komercni Banka's (KB's) deals involving an Austrian businessman of Israeli origin, Barak Alon, and the former director of the KB financing department, Jirina Kaplanova.

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L/Cs cited in trade quarrels between India and Bangladesh

Indian traders have alleged that some Bangladeshi commercial banks are refusing to pay some letters of credit (L/Cs).

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L/Cs take the blame for embezzlements from Indonesian banks

A leading Indonesian politician has said that fake letters of credit (L/Cs) are behind a substantial number of cases of theft by insiders at Indonesia's banks.

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Guarantees for L/C transactions between Iraq and Pakistan

Iran is to provide export guarantees to cover the risk of non-payment of all types of trade credit in import and export deals between Iran and Pakistan.

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Hong Kong couple found guilty of bribery in US$17m L/C scam

A Hong Kong couple has been convicted of offering about HK$1 million in bribes to a former bank officer to defraud the bank at which he worked by securing loans totalling US$17 million with standby letters of credit (L/Cs).

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US Ex-Im Bank supports for US agricultural exports to Iraq

The Export- Import Bank of the United States (Ex-Im Bank) has approved an insurance policy for agricultural export financing specialist CoBank to provide up to US$180 million in letters of credit (L/Cs) to support US exports to Iraq.

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L/C threats as relations deteriorate between Syria and Lebanon.

Syria is considering blocking Lebanese exports. This could impact on regional letter of credit (L/C) flows from at least two perspectives.

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L/C guarantee to kick start Iran-Iraq Trade

Iran and Iraq have signed a memorandum of understanding to open a US$1 billion credit line aimed at boosting trade flows between the two neighbouring countries.

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EBRD's trade finance facility goes from strength to strength

The letter of credit (L/C)-based scheme operated by the European Bank of Reconstruction and Development (EBRD) that promotes foreign trade to, from and within central and eastern Europe and the Commonwealth of Independent States (CIS) appears to be going from strength to strength.

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Slow L/Cs holding back Indo-Iranian trade

Trade between India and Iran is being hampered because of the length of time it takes to obtain letters of credit (L/Cs) in Iran, according to an Indian business leader.

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Steel makers say Chinese banks dishonour L/Cs

Steel manufacturers in India exporting to China say some state-owned banks there are dishonouring letters of credit (L/Cs) according to a report in an Indian financial daily.

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L/C outsourcing trend continues

Allahabad Bank, one of India's largest banks with around 2,000 branches, has opted to outsource its letter of credit (L/C) processing to Standard Chartered Bank.

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Better access to L/Cs for Indian SMEs

A unique public-private partnership has launched an initiative designed to improve access to banking services, including letters of credit (L/Cs), for small- and medium-sized enterprises (SMEs) near the Indian capital of Delhi.

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Korean banks line up to join Asian L/C trade facility

Banks in Korea are considering their participation in the Asian Development Bank's (ADB's) Trade Finance Facilitation Programme (TFFP).

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Bulk of UCP 600 draft revealed in Dublin

The prospect of revised Uniform Customs and Practice for Documentary Credits (UCP) drew closer last week with the first presentation of a draft containing most of the revisions put forward so far to the International Chamber of Commerce (ICC) rules that apply to letters of credit (L/Cs).

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Banks refusing L/Cs in Bangladesh

Textile mill owners in Bangladesh have told local media that commercial banks, particularly those in the public sector, have been refusing to open their letters of credit (L/Cs).

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Growth through L/C business for small private Iraqi bank

A crop of small privately owned banks established in the 1990s is emerging in Iraq.

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Businessman slams decisions in US Eximbank's L/C scheme

The Export-Import Bank of the United States (Eximbank) has come under fierce attack from a businessman who says that the official US export credit agency (ECA) is these days favouring larger businesses.

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Central banker says Iranian L/Cs are better received

Deputy governor for foreign exchange affairs at the Central Bank of Iran (CBI) says the country's foreign liabilities are amongst the lowest in transitional economies.

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Bank must pay damages for sending L/C to the wrong place

The UK's House of Lords has overturned an appeal court decision and ordered the Royal Bank of Scotland (RBS) to pay damages because it sent letters of credit (L/Cs) to the wrong place.

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Hong Kong's graftbuster claims more fraud prosecutions

More top executives and senior business people are being brought to book in corruption cases because of the efforts of Hong Kong's graftbuster, the Independent Commission Against Corruption (ICAC).

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Fraudulent Iranian trade finance market brings banking due diligence to the fore

Fraudulent activity in the busy Iranian trade finance market is dampening down enthusiasm and ramping up due diligence procedures. International authorities are working with Iranian banks to counter the grafters who are harming Tehran's reputation as a good place for banks to do business.

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L/Cs employed in unusual home loans scam

Letters of credit (L/Cs) were employed in an unusual alleged conspiracy to defraud in Freeport in the US state of Illinois according to officials involved in the case.

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Standard Chartered fined for L/C delay

The State Consumer Commission in Delhi has ordered Standard Chartered Bank to pay textile firm HB Impex Ltd compensation of around US$10,000 and legal costs of around US$1,100 as compensation for the bank's delay in preparing a letter of credit (L/C) for a cross-border transaction.

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Former weapons inspector says L/C audits could thwart nuclear black marketeers

A former weapons inspector with the UN Monitoring, Verification and Inspection Commission (UNMOVIC) has called for an international auditing authority that could focus on examining trading documentation, including letters of credit (L/Cs), with the aim of detecting components of or complete weapons of mass destruction (WMD) trading on the black market.

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IFC steps in to boost trade financing in Iraq

The International Finance Corporation (IFC) is to provide a US$12 million loan to the Al-Ahli Bank of Iraq to boost the country's ability and capacity to provide banking services for small- and medium-sized enterprises (SMEs).

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L/Cs fuelling US housing boom

Letters of credit (L/Cs) are increasingly being used to finance property investments in the US housing market, particularly when it comes to purchases of beachfront condominiums and other holiday homes.

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New twist in L/C usage in oil-for-food programme

Saddam Hussein's regime used Jordanian banks to open letters of credit (L/Cs) to purchase weapons and other materials between 1996 and 2003, when the UN's oil-for-food programme should have prevented all but the most essential imports reaching Iraq according to a report in the Washington Times.

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L/Cs employed to boost IPO price

Six people are facing charges connected with a scam that employed letters of credit (L/Cs) to inflate the value of a Hong Kong company as it headed for an initial public offering (IPO).

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ANZ says L/C business is booming, but retail is prime target in China

Encouraged by burgeoning volumes and values of letters of credit (L/Cs) for Australian exports to China, ANZ Bank says it plans to invest in two Chinese banks in the next 12 months.

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Banks in India expand trade finance networks

Local and foreign banks in India are making and implementing plans to expand their trade finance networks across the country.

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Myanmar-Bangladesh L/C-based trade facility under review

A letter of credit (L/C) based trade facility designed to promote trade between Myanmar and Bangladesh remains under review by the two countries.

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Pakistan establishes banking ombudsman

Pakistan has established an institution of Banking Mohtasib (Ombudsman) following an amendment passed by the federal government into the country's banking laws.

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BNP Paribas chief concedes "avoidable errors" in UN oil-for-food hearing

The chief executive officer of BNP Paribas-North America has conceded to a US Congress hearing that the bank made "avoidable errors" in its role as the banker for the UN's oil-for-food programme (OFP) for Iraq.

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Bangladesh claims success in curbing use of L/Cs in fraudulent imports

Authorities in Bangladesh concerned about the use of letters of credit (L/Cs) in fraudulent imports say they have already seen falling L/C openings since introducing measures to curb this type of fraud (DC World News, 11 & 14 April 2004).

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Bolero announces deal with MaxeTrade for Australian exporters

Bolero, the web-based platform and set of standards over which electronic trade finance products can run, has announced a partnership with MaxeTrade to provide Australia's exporters with access to Bolero solutions.

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Barclays launches Hong Kong international trade division

Barclays is opening a new international corporate banking division in Hong Kong providing services in cash management and trade finance services, including letters of credit (L/Cs).

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Two Jailed for Bank Mandiri L/C fraud

Two former employees of Indonesian state-owned Bank Mandiri have been sentenced to jail for embezzling Rp24 billion (US$2.5 million) from the bank.

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Damascus promises quicker L/C reforms

Syria is quickening the pace of its long-heralded banking sector reforms according to a government minister. As a result, Damascus hopes domestic banks will win business from Syrians who have felt uncomfortable about doing business with banks in Lebanon since tensions between the two countries mounted after the assassination of former Lebanese Prime Minister, Rafik Harari.

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Cisco's idea to wean its dealers off L/Cs

Cisco, the massive computer-networking specialist, has come up with a financing scheme aimed at improving its dealer network's access to trade credit.

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US Ex-Im Bank small business bank award recognises L/C insurance achievements

A California-based bank serving companies in the technology, life sciences, winemaking and private equity markets has won the 2005 Small Business Bank of the Year Award from the Export-Import Bank of the United States (US Ex-Im Bank).

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Bangladeshi L/C customers of suspended branches can go elsewhere.

Customers of the 19 branches of 13 commercial banks in Bangladesh suspended from opening fresh letters of credit (L/Cs) against imports (DC World News, 11 April 2005) can open fresh L/Cs at other authorised branches of the banks, according to official sources at the central bank.

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Bolero teams up with Chinese electronic trade partner

Bolero, the online platform and rulebook for electronic trade finance transactions, has signed an agreement with the Beijing-based China International Electronic Commerce Centre (CIECC).

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Bangladeshi banks barred from opening fresh L/Cs

The Bangladesh Bank (BB) has suspended its authorisation of 19 branches of 13 commercial banks allowing them to open fresh letters of credit (L/Cs) against imports.

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Philippines Customs chief wants L/Cs to force duty payments

The Philippines newly appointed Customs commissioner says his office has made a proposal that would require all importers to open letters of credit (L/Cs).

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US entrepreneur asks would-be Chinese car dealers for US$2 million L/Cs

An entrepreneur who wants to be first to distribute Chinese cars in the US is asking would-be dealer-investors to stump up US$2 million to put into an escrow account and a US$2 million letter of credit (L/C).

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Tycoon faces life in Indonesia's multi-million dollar L/C scam

A tycoon and would-be presidential candidate has been sentenced to life imprisonment for embezzling up to US$200 million in the Bank Negara Indonesia (BNI ) letter of credit (L/C) scandal (DC World News, 20 November 2003).

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L/Cs share the blame for Bangladesh's liquidity problems

High volumes of letters of credit (L/Cs) are contributing to a persistent liquidity problem in Bangladesh's banking sector that has caught the country's central bank in a dilemma.

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Natural resource giant signs up to Bolero's L/C technology

One of the world's largest diversified natural resources companies - Swiss-based commodities trading house Glencore International - has selected Bolero technology for the online automation of its letter of credit (L/C) application process.

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Damascus pushes banking reform as Syrians withdraw from Lebanon's banks

Damascus is pushing through banking reforms with the aim of capturing business from Syrians who now feel uncomfortable about doing business with banks in Lebanon.

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Washington's new guidelines for L/Cs in US sales to Cuba

Washington has sought to end the confusion surrounding the use of letters of credit (L/Cs) that US exporters of agricultural goods may use in trades with Cuba.

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L/Cs in US home loan fraud

A real estate agent operating out of the US state of Ohio has been indicted on charges of fraud.

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Future for L/Cs in India's power financings

Letters of credit (L/Cs) appear to have held on to their position as key components in Indian power sector financings with the announcement that they will feature in the financing of a power project near Mangalore.

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Restrictions on L/Cs for Cuba may soon be eased

Traders in the US are optimistic that the restrictions on letter of credit (L/C) transactions in US-Cuban trades may be eased.

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HSBC's expanding corporate platform

Global banking group HSBC is extending its internet banking platform - which includes online letter of credit (L/C) functionality to its business customers.

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TradeCard's mellow L/C approach

TradeCard, which at one stage marketed itself as a company with a web-based product to replace the letter of credit (L/C), now seems to have mellowed its approach to documentary credits.

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Beyond L/Cs for pioneering Trade Bank of Iraq

The Trade Bank of Iraq (TBI), which has been praised for its efforts providing letter of credit (L/C) finance for Iraqi transactions, is to lead the way into other banking segments by expanding its range of services.

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Beleaguered aviation fuel supplier contests bank's L/C claim

A debt ridden aviation fuel supplier is contesting a bank's claim for around US$13 million.

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Exim Bank backed L/Cs to boost Indian sales to Lesotho

The Export-Import Bank of India (Exim Bank) has extended a US$5 million line of credit to Lesotho under which letters of credit (L/C) can be opened for two years.

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Bangladesh reports record import L/C growth

The value of import letters of credit (L/Cs) opened in Bangladesh in the six months to December 2004 surged by nearly 25 per cent.

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ABN AMRO says new trade portal responds to declining L/C business

ABN AMRO recently launched its latest version of its MaxTrad portal through which provides online access to a range of trade applications.

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Bush says no L/Cs for undemocratic Cuba

Washington is tightening financial rules on US exports to Cuba to put pressure on Havana to introduce democratic reforms.

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German fugitive faces charges of L/C forgery

A German fugitive facing charges related to several offences including letter of credit (L/C) forgery, has been extradited to South Africa from Britain.

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Bank refuses to show L/Cs to Canadian investigators

A standoff in Toronto between the Bank of Nova Scotia (Scotiabank) and the Royal Canadian Mounted Police (RCMP) over the disclosure of documents - including letters of credit (L/Cs) - is raising questions over the extent of privacy laws.

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Man admits role in false standby L/C plot

A man has pleaded guilty to one count of conspiracy to use a copy of a false instrument in a fraudulent scheme to swindle money with bogus standby letters of credit (L/Cs)

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L/C threats reduced as money laundering blacklist shortens

The Financial Action Task Force (FATF) has removed Indonesia, the Philippines and the Cook Islands from its blacklist of countries and territories it considers to have insufficient safeguards against money laundering and other illicit financial transactions.

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Discount L/Cs from Thailand's Exim Bank

The Export-Import Bank of Thailand (Exim Bank) plans to take a more active role in helping exporters expand into new export markets, according to its president, Sataporn Jinachitra.

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TradeBeam claims supply chain integration will shape L/C business

A software and services company providing solutions aimed at streamlining trading processes for businesses says demand is on the increase from companies wanting solutions that integrate physical and financial supply chains.

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No cash for L/Cs as Nepal's king freezes telecommunications

Nepal's monarch has frozen the country's telecommunications network as part of the state of emergency he declared after losing patience with the government for its apparent inability to organise elections and clampdown on Maoist insurgents.

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L/C volumes squeeze forex in Bangladesh

Massive import payments by Bangladeshi commercial banks against letters of credit (L/Cs) for capital machinery, foodgrains, fuel and fertiliser have put pressure on country's foreign exchange market.

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Hong Kong exporters first to see unified view of all outstanding L/C advices

An electronic letter of credit (L/C) advice solution claims to offer thousands of Hong Kong exporters the opportunity to reduce their order-to-cash cycle and improve speed and accuracy.

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Editor's note

As we enter our eleventh year of DCInsight, we're in a reflective mood. Ten years ago, when we started up this magazine, UCP 500 had just come into force. The first two commentators on the (then) new rules were Bernard Wheble, Chairman Emeritus of the Banking Commission and Charles del Busto, the (then) Chairman who replaced him. Mr Wheble, who has unfortunately been taken from us in the meantime, focused on the new UCP Transport Articles, and said that the idea of having a different Article for each mode of transport was a revolutionary one. He added meaningfully that "when constituting any possible future UCP revision group, that group could possibly benefit from membership including disciplines additional to banking and the law." Charles del Busto, on the other hand, said that the (then) new UCP would result in "a better type of letter of credit being effectively issued".

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L/C support for Eastern and Southern African SMEs

The Eastern and Southern African Trade and Development Bank (PTA Bank) is to provide support for letter of credit (L/C) business written by small- and medium-sized enterprises (SMEs) in its member states.

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Two arrested in India for export frauds

Delhi Police has arrested two people for allegedly cheating Indian exporters on the pretext of winning them lucrative orders for home furnishings from overseas buyers.

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Iran and Iraq mull bilateral trade opportunities

The Export Development Bank of Iran (EDBI) has agreed to cover millions of US dollars worth of letter of credit (L/C) transacted trade with Iraq.

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Seven face charges in Kong Kong charge over alleged false standby L/C plot

A solicitor, a solicitor's clerk and five others are facing charges brought by Hong Kong's Independent Commission Against Corruption (ICAC) for their alleged roles in a fraudulent scheme to swindle money with bogus standby letters of credit (L/C).

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Fortune 500 company switches from L/Cs to TradeCard

One of the largest US drugstore chains has signed up to TradeCard, the Web-based alternative to letters of credit (L/Cs).

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China arrests dozens in massive alleged L/C fraud

Chinese investigators have revealed frauds involving letters of credit (L/Cs) on a massive scale as they continue to crackdown on corruption in the country's banks.

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Iraq's trade minister refutes allegations of secrecy in L/C transactions

Iraq's trade minister has refuted claims made in a British newspaper article that secrecy motivated his ministry's decision to use Lebanese banks instead of the Iraq Trade Bank (ITB) to open letters of credit (L/Cs) for food imports (DC World News, 7 January 2005).

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Checking scheme produces 95 per cent L/C accuracy

A new service launched in Britain is claiming that the exporting businesses it serves are receiving prompt payment because 95 per cent of the letters of credit (L/Cs) used in the scheme have proved acceptable on first presentation.

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Bangladeshi graft-buster cuts teeth on discrepancies between L/C and customs declaration

The recently formed Anti-Corruption Commission (ACC), established to probe financial crimes in Bangladesh, is investigating a complaint of evasion of import duty by a Bangladeshi trader.

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L/Cs to remain a feature in the new Dabhol power projects

The Indian government is planning to acquire the assets of the failed Dabhol Power Company (DPC) through a debt recovery tribunal.

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Nonbank-issued letters of credit accommodated by SWIFT

Trade Finance Maintenance Working Group reverses its earlier decision

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Iraq Trade Bank taking too long to open L/Cs

The Iraq Trade Bank (ITB) is taking too long to open letters of credit (L/Cs), apparently causing Iraqi officials to turn to banks in the Lebanon according to a British newspaper.

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Company director faces court for alleged HK$89m L/C fraud

A director and shareholder of a trading company has been charged in a Hong Kong court with allegedly defrauding five banks of HK$89 million worth of letter of credit (L/Cs) facilities with bogus documents on business transactions.

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Oman reports surging L/C figures

Provisional statistics released by the Central Bank of Oman (CBO) indicate that import letter of credit (L/C) turnover in the Gulf country increased by nearly 50 per cent in the year to 31 October 2004.

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Iran and South Africa look to use L/Cs to expand trade links

The Export Guarantee Fund of Iran (EGFI) has said it will cover certain letter of credit (L/C) transactions with South Africa in the two countries' efforts to boost bilateral trade.

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Canara Bank pays up in dispute with Wells Fargo

Eight years after a letter of credit (L/C) dispute between Canara Bank and Wells Fargo began, the Indian bank has paid the US bank the principal amount of the disputed paper.

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Concerns about China's L/Cs from the US and India

The way Chinese banks handle letters of credit (L/Cs) is causing concern in the US and India.

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Letters of Credit - The Autonomy Principle

The autonomy principle remains unscathed and, absent fraud, a bank will be required to pay against a properly presented letter of credit (L/C) according to lawyers.

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Smaller US life insurers disadvantaged by rising L/C costs

Small- to medium-sized life insurance writers in the US are apparently disadvantaged relative to their larger rivals because they are being hit by rising letter of credit (L/C) costs, and according to an insurance ratings agency they could be further disadvantaged if demand for L/Cs results in a lack of capacity.

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New ICC Opinions from the Banking Commission Meeting held in Moscow in October 2004

There were 7 ICC Opinions decided upon at the ICC Banking Commission Meeting held in Moscow in October.

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Seven face charges in L/C frauds involving Hong Kong listed companies

Seven people have been charged in two separate cases in Hong Kong for their parts in alleged frauds. The charges follow investigations by Hong Kong's Independent Commission Against Corruption (ICAC).

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Indonesia to phase out L/C guarantees

Indonesia plans to start phasing out its costly guarantees on bank liabilities, including letters of credit (L/Cs) used in international trade.

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Jury remains out on paperless trade finance systems

Legal rather than technical reasons are preventing a widespread take up of paperless trade finance systems according to a managing partner of a trade finance software house.

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Another businessman sentenced in BNI L/C scam

A businessman has been sentenced to 15 years in jail for his part in the multi-million dollar Indonesia-centred letter of credit (L/C) fraud that was revealed last year (DC World News 20 November 2003).

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Exporters warn of L/C difficulties in China

Chinese demand is soaring for all manner of imported goods, from consumables to construction equipment.

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Exim Bank India extends credit lines for Brazil and Myanmar

The Export-Import Bank of India (Exim Bank India) has extended two credit lines to Indian businesses looking to do most types of business with Brazil and to enterprises providing equipment to major railway projects in Myanmar.

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Accreting L/Cs feature in groundbreaking construction financing

Bank of America (BoA) Tower in New York City should be completed by 2007 thanks in part to an innovative public-private financing mechanism that incorporates an unusual use of letters of credit (L/Cs).

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IFC launches largest global trade financing programme to date

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has approved a largely letter of credit (L/C) based US$500 million global trade finance programme (GTFP).

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BNP Paribas denies wrongdoing in Iraqi oil-for-food programme hearing

The French bank that managed the letter of credit (L/C) based UN oil-for-food programme in Iraq is defending itself against accusations made by a US congressman that it improperly monitored transactions involving Saddam Hussein's oil sales.

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Lack of L/Cs contributing to China's US$100 billion bad export debt

China's exporters appear reluctant to use letters of credit (L/Cs) or employ credit control strategies as they seek to conquer new and wider markets worldwide.

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Online L/Cs feature in China car financing deal

Dongfeng Peugeot, a unit of the joint venture between French motor giant Peugeot Citroen and China's Dongfeng Motor Corp, has reached agreement on a car financing deal with three Chinese commercial banks.

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L/C solutions provider deploys software for safer trade

TradeBeam, a software and services company providing global trade management solutions says it has successfully completed two deployments of its software to support the Operation Safe Commerce (OSC) initiative led by the US Department of Homeland Security (DHS).

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Southeast Bank to offer new ADB trade facility

Southeast Bank has become the first private sector bank in Bangladesh to sign an agreement with the Asian Development Bank (ADB) to operate its Trade Finance Facilitation Programme (TFFP).

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Senior bank manager jailed for Hong Kong L/C frauds

A former Hang Seng Bank employee, Lam Tze-leung, has been jailed for seven years and nine months for fraudulently granting letters of credit (L/Cs) worth more than HK$490 million.

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EBRD support for Rosbank L/Cs

One of Russia's new generation of joint stock banks has said it has reached an agreement with the European Bank of Reconstruction and Development (EBRD) that should widen the availability of export letters of credit (L/Cs) for its clients.

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Bangladesh calls for locally available L/Cs in northeast India to boost trade

A Bangladeshi minister has called for the simplification of trade arrangements, particularly in respect of letters of credit (L/Cs) for Indian importers, to facilitate greater volumes of commerce between his country and states in northeast India.

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Standard Bank promotes online trade finance tools

South Africa's Standard Bank has been familiarising international traders with its latest online trade finance tools, including electronic letters of credit (L/Cs) facilities, at a major international trade exhibition.

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Directors and employees of former listed company found guilty of HK$100m L/C fraud

The chairman of a former publicly listed company, Firstone International Holdings Limited, has been found guilty by a Hong Kong court for his role in a HK$100 million letter of credit (L/C) fraud.

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Editor's note

This issue, which completes our 10th year of DCInsight, contains a special supplement on guarantees. Why, some may ask, devote so much space to guarantees in a publication focused on documentary credits? The answer is that a number of the same issues facing documentary credit specialists carry over into guarantee practice and that practitioners often find themselves dealing with both instruments. Recognizing the links, a few years ago the ICC Banking Commission set up a Task Force on Guarantees, which has become highly active and which now includes more than 20 members. It's also worth noting that the ICC's Uniform Rules for Demand Guarantees (URDG) received new impetus when they were adopted by the World Bank in its unconditional guarantee forms.

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Indonesian L/Cs remain under threat from money laundering watchdog

The Financial Action Task Force (FATF) has decided that Indonesia should remain on the list of non-co-operative countries and territories in the international campaign against money laundering.

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Mysis claims true front-to-back straight-through L/C processing

Misys Wholesale Banking Systems (Misys) says it has integrated two of its solutions to deliver a highly automated pre-packaged solution designed to support true front-to-back straight-through processing (STP).

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Plans for L/C facility to help smaller Californian exporters

Small- and medium-sized enterprises (SMEs) in California may soon be able to apply for a letter of credit (L/C) based pre-export finance facility backed and delivered by several publicly funded business support agencies and private sector players.

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Another conviction in Bank Negara Indonesia L/C scam

The businesswoman sister of the chief suspect in the multi-million dollar letter of credit (L/C) scams involving state-owned Bank Negara Indonesia (BNI) has been sentenced to eight years in jail for her role in the frauds.

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Factor claims importers will demand better than L/C terms next year

A factoring company in Pakistan is suggesting that the final 1 January 2004 loosening of quotas restricting imports of textiles to North America and Europe will lead to demands from importers for payment terms that favour them better than letter of credit (L/C) terms.

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Police want to question BNI suspect's lawyer and doctor

A second chief suspect in the multimillion-dollar letter of credit (L/C) frauds involving state-owned Bank Negara Indonesia (BNI) has gone missing.

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Bolero reports on L/C advice system take-up

Twenty banks and corporates have now taken up the electronic letter of credit (L/C) advice application produced by Bolero, the secure electronic platform over which trade data and documentation can be exchanged on the worldwide web.

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US Ex-Im Bank and Trade Bank of Iraq sign trade financing agreement

The Export-Import Bank of the United States (US Ex-Im Bank), the Iraqi ministry of finance, and the Trade Bank of Iraq (TBI) have signed a framework agreement that enables Ex-Im Bank to continue supporting US exports for Iraqi reconstruction.

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More heavy sentences in Bank Negara Indonesia L/C fraud trial

Five directors of the company at the centre of the multi million dollar letter of credit (L/C) frauds involving state-owned Bank Negara Indonesia (BNI) have been sentenced to jail terms of between eight and 15 years.

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Open account and L/C platform on same online platform

One of the world's leading trade finance providers says it is responding to customers' needs by offering importers the ability to manage their open account cross-border settlement activity on the same online platform as their letter of credit (L/C) and documentary collection activity.

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Investors grapple with L/C complexities in Indian power privatisation

Potential investors in the National Thermal Power Corporation (NTPC), which is soon to be privatised through an initial public offering (IPO), are trying to work out how watertight guarantees of payments from power purchasers are.

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L/Cs feature in more business process outsourcing scams

Fake letters of credit (L/Cs) appear to be increasingly employed in scams in the emerging business process outsourcing (BPO) and call centre industries.

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China cracks down on financial crime

China says it has scored some notable victories in a crackdown on document-based financial crimes that began in March.

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First Indian commercial bank opens in Russia

The first wholly Indian-owned commercial bank in Russia has opened in Moscow with the aim of boosting trade and economic cooperation between the two countries.

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Vietnamese and Chinese leaders call for local currency L/Cs

Vietnam and China are calling for local currency letters of credit (L/Cs) to support economic corridors connecting various cities and provinces in the two countries.

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China executes former banker who took bribes for issuing false L/Cs

A former bank employee in the southern Chinese city of Zhuhau, near Hong Kong, was executed on Tuesday for taking bribes to issue letters of credit (L/Cs) that cost the bank at least US$10.3 million, according to a report in China's state media.

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Unauthorised signature by documentary credit officer is binding

A decision by the High Court of Australia underlines, for documentary credit officers and the banks that employ them, the potential perils of signing or allowing to be signed documents other than those strictly associated with a documentary credit transaction.

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India's reserve bank warns of mounting pile of outstanding L/Cs

The Reserve Bank of India (RBI) is concerned about the mounting pile of outstanding letters of credit (L/Cs) opened for imports of diamonds, copper and other commodities.

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Azeri bank hails EBRD's L/C-based trade facilitation programme a success

Azeri-based Unibank has been singing the praises of the European Bank of Reconstruction and Development's ( EBRD's) apparently successful Trade Facilitation Programme ( TFP ), which guarantees letter of credit (L/C) business in the former Soviet states of Central and Eastern Europe (DC World News 14 May 2004).

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Ugandan traders say their new bank will take L/Cs as security

A group of traders in the Ugandan capital of Kampala say they are establishing their own credit bank that will accept import documents, including letters of credit (L/Cs) as security.

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Centralised L/C function features in Habib Bank's Basel II strategy

Banks have work to do in order to meet compliance challenges in the new Basel II agreement effective from 2006 according to the head of global operations of Habib Bank, Jamil Iqbal.

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Thailand and Laos back away from US dollar denominated L/Cs to boost trade

The governor of the Bank of Thailand (BOT) has signalled that he wants to boost trade between his country and neighbouring Laos.

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Central Bank of Kenya reports wide range of import L/C charges

Kenyan importers wishing to obtain import letters of credit (L/Cs) could be much better off if they talked to Guardian and Habib AG Zurich banks instead of some of their competitors.

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South Africa's corporates call for online L/C quotes

A recent study reveals that South Africa's corporates are generally satisfied with the services and service levels provided by their banks but would nevertheless like to see some improvements in bank provision.

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Jailed L/C fraudster faces more questions

A former bank chairman serving a prison sentence in an Indian jail for his part in a letter of credit (L/C) scam has been implicated in more allegations of bank fraud.

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Import L/Cs up 23.5 per cent in Bangladesh

Import letters of credit (L/Cs) opened in Bangladesh during the 2003-04 fiscal year increased by 23.53 per cent over the previous year according to the central bank.

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Life sentence and 16-year jail term for former Indonesian bank officials

Two senior Indonesian bank officials have been handed down sentences of life and 16 years' imprisonment for their part in the US$184 million letter of credit (L/C) frauds that rocked state-owned Bank Negara Indonesia (BNI) last year (DC World News, 4 November 2003, 6 November 2003 & 20 November 2003).

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Fake L/Cs employed in outsourcing scam

Police in the northern Indian province of Haryana have raided the offices of an IT outsourcing company suspected of defrauding clients out of thousands of rupees.

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L/Cs in the Philippines may grind to a halt warns bank committee chairman

Letters of credit (L/Cs) may grind to a halt in the Philippines if it does not implement financial sector legislation to combat money laundering and illicit financing demanded by the Financial Action Task Force (FATF), according to a top politician.

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Korea and India sign L/C agreement

The Export-Import Banks (Eximbanks) of Korea and India have signed a letter of credit (L/C) agreement aimed at facilitating import-export flows between the two countries.

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Bangladesh Bank's fake L/C warning

The central bank of Bangladesh has issued a circular to banks asking them to verify the identity of importers before opening letters of credit (L/Cs).

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L/C agreement to facilitate Iran-Iraq trade

Iran and Iraq have signed an agreement under which Iranian banks will facilitate the opening of letters of credit (L/Cs) for Iraqi business people, thus making it easier for them to do business with Iran.

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TradeBeam claims successes in its electronic L/C solutions

A trade finance software developer founded four years ago says it is making significant advances in the field of global trade settlement solutions.

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WestLB must honour US$165 million L/C Enron financing

J P Morgan Chase & Co has won a rare legal victory in its vigorous campaign to recoup money for controversial Enron financings that several financial institutions have argued were illegal and breached US accounting and securities rules.

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Asian Development Bank launches Trade Finance Facilitation Programme

The Asian Development Bank (ADB) has formally launched its US$150 million Trade Finance Facilitation Programme (TFFP).

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Officials from two Indonesian banks in court over L/C scams

Letters of credit (L/Cs) feature prominently in two separate fraud cases in Indonesia where prosecutors are calling for tough sentences for those found guilty of defrauding banks.

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China uses L/C intervention to cool economy

The Chinese government is attempting to cool its red-hot economy by instructing state banks to stop issuing letters of credit (L/Cs) in sectors that are in its opinion running out of control.

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No L/Cs for Google say major brokerage firms

Google's US$2.7 billion planned initial public offering (IPO) is unconventional in several respects, not least that it is essentially a Dutch auction in which the share price, rather than being fixed in advance will be determined by bidders.

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Editor's note

Once again, we devote considerable space in this issue to the UCP revision, now in its second year. The Drafting Group developing the revised rules is moving ahead at a steady pace, with several Articles already in their second drafts and others about to be released to the UCP Consulting Group.

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India caps L/C usance period on arbitrage fears

India has capped the tenure at 90 days for suppliers' and buyers' credit, including the usance period of letters of credit (L/Cs) for directly imported gold.

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HSBC and Standard Chartered may miss deadline to open in Iraq

HSBC and Standard Chartered Bank have told the Iraqi authorities they may not be able to meet a deadline to open branches in the country by the end of the year due to a lack of adequate security, according to Reuters.

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Electronic alternatives to L/Cs remain a distant but appealing prospect

Electronic alternatives to traditional transport documents have not yet cleared the obstacles that need to be removed before they can replace negotiable bills of lading (B/Ls) as the staple fare in international trade according to a survey by the United Nations Conference on Trade and Development (UNCTAD).

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L/C outsourcing on the increase

One of the pioneers of letter of credit (L/C) processing services is predicting a significant growth in the volume of trade services outsourced by banks.

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American Express to establish back office in the Philippines

American Express Bank (Amex Bank) is to establish facilities in the Philippines to provide back office processing for its global operations, including some trade services.

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Pakistan eases rules for exporters with irrevocable L/Cs

The State Bank of Pakistan (SBP) has authorised commercial banks to release shipping documents to exporters upon full advance payment against the exports of goods from the country.

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Failure to address money laundering could compromise Indonesia's ability to write L/C business

The government's lack of political will and effort is to blame for Indonesia's failure to curb money laundering according to the head of the Financial Transaction and Report Analysis Centre (PPATK), the organisation formed under the country's anti-money laundering law.

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Business fails after customer makes it impossible to arrange L/Cs

A US clothing distributor is suing a retailer for fraud and breach of contract that it contends made it impossible for the distributor to arrange the letters of credit (L/Cs) it needed to carry on its business.

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Trade Bank of Iraq expects to double L/C turnover under new government

Trade Bank of Iraq (TBI) expects to double the value of public trade it finances on letter of credit (L/C) terms in the next few months according to the bank's president.

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L/Cs could have prevented alleged corporate-criminality

Letters of credit (L/Cs) could have prevented the fall from grace of a US software company that less than a year ago was one of Wall Street's favourite technology stocks.

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Indian L/C backed power purchases in jeopardy

Letters of credit (L/Cs) to secure power purchases by India's state electricity boards (SEBs) are not assured as the Indian government looks forward to frame new legislation covering the electricity sector.

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Bolero announces new top man

Bolero, the cross-industry platform for transacting e-business over the Internet, has announced that Arthur Vonchek has been appointed as its new chief executive. He replaces Barry Morse who resigned in March 2004.

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US banks eye Libyan L/C opportunities

US banks barred from operating in Libya for the last two decades want to resume business with the North African state as it opens up after sanctions.

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Union Planters launches automated L/C system

One of the US' larger banks has announced that it is providing a new way for importers to handle virtually all their letter of credit (L/C) needs from any location worldwide.

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L/Cs may not prevent Chinese export scams

Hundreds of manufacturers in China have reportedly been ensnared in a business scam in which manufacturers are asked to pay miscellaneous fees in advance of receiving a down payment for apparently lucrative export orders.

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Wells Fargo to offer digital signature solution

Wells Fargo is to offer customers a new digital signature solution to create legally binding electronic documents that could be used in letter of credit (L/C) documentation.

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Improved risk perceptions boost Algerian L/C confidence

Improvements in external perceptions of Algerian risk have led to an increase in letter of credit (L/C) business for exports to Algeria according to French bankers.

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International trade services firm denies wrongdoing in L/C-based Iraqi oil-for-food programme.

Cotecna Inspections, the company that won the contract to inspect shipments of food and medicine to Saddam's sanctioned regime, has issued a denial of any wrongdoing in the UN's oil-for-food programme (OFP) under which Iraqi oil trades were governed between 1995 and 2003.

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Koreans say L/Cs are difficult to open in China

Difficulties in opening letters of credit (L/Cs) are cited by South Korean investors in China as one of several difficulties they face as they try to establish and maintain positions in the burgeoning Chinese economy.

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Alleged L/C fraud reveals extradition difficulties

Hong Kong has extradited a man suspected of letter of credit (L/C) fraud to India in a drawn out process that underlines some of the difficulties faced by investigators and prosecutors of cross-border fraud cases.

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Trading giants consider bilateral L/C confirmation agreement

India and China are making plans to introduce reciprocal credit lines with the aim of boosting still further the already burgeoning volumes of trade between the two countries.

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Ringleader absent from Indonesian L/C fraud trial

The trial has begun of some of those suspected of defrauding the Bank Negara Indonesia (BNI) of US$190 million by employing false documentary credits (DC World News. 20 November 2003).

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L/Cs central to Asian Development Bank's new US$150 million trade facility

The Asian Development Bank (ADB) has formally launched its US$150-million Trade Finance Facilitation Programme (TFFP) in a bid to boost liquidity and improve stability in the trade finance system in the Asia-Pacific region.

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Documentary credits may prevent barter abuses

Documentary credits may be employed to prevent abuses in a barter programme envisaged by Vietnam and Indonesia.

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Payroll firm accused of passing more fraudulent L/Cs

One of the US' larger providers of outsourced human resource management services has been accused of passing counterfeit letters of credit (L/Cs) for the second time in a year.

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UCP revision advances

The UCP Drafting Group, meeting in Paris 12-14 May, has completed another set of revised UCP Articles to send to the UCP Consultative Group. The Articles, numbering Articles 20-29, were sent to the latter group at the end of last week.

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L/Cs caught up in outsourcing trends

The trend towards outsourcing trade services seems to be gathering pace, perhaps even to the extent that a new paradigm in trade financing is emerging where processing of letters of credit (L/Cs) along with most commonly used trade services could possibly be undertaken by just a handful of major players.One of the most serious contenders in the competition to become a trade service provider to other banks and their customers on an outsourced basis is ABN Amro.

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Credit insurer claims big fall in L/C usage

A surprising report in a Hong Kong newspaper that letter of credit (L/C) usage has fallen by more than 80 per cent in recent years will most likely raise questions in certain quarters of the trade finance community.

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New tax refunds on L/Cs aim to bring new jobs to British Columbia

New tax refunds on import letters of credit (L/Cs) are being introduced in British Columbia (BC) as part of a suite of measures meant to stimulate international trade and create jobs in the province.

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Integrated logistics and trade finance solutions key to success

A company that provides applications for managing the entire lifecycle of domestic and international trades has been selected as one of the top 100 IT providers for 2004 by a leading logistics magazine.

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Financiers eye Iranian L/C business

Iranian importers are opening very large volumes of letters of credit (L/Cs) as exporters seek more business in one of the Middle East's more promising markets.

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Record year for EBRD supported L/C business in former Soviet states

Record volumes and values of business were written in 2003 under the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme ( TFP ), which guarantees letter of credit (L/C) business in the former Soviet states of Central and Eastern Europe (CIS).

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Factors gun for L/C business

Factoring is a faster and more cash flow beneficial alternative to letters of credit (L/Cs) according to speakers at a recent gathering of factors in Dubai.

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Uncertain future for L/C alternative

A system for buying and selling products between two countries that does not depend on hard currency payments has been seen as a good alternative to letters of credit (L/Cs) by governments of countries experiencing foreign exchange difficulties or those wanting to develop trade with countries where hard currency is hard to come by.

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Indian exporters call for L/Cs to provide key to cheap credit

Indian exporters are calling for letters of credit (L/Cs) to become a key with which they should be able to access export credit on preferable terms.

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Editor's note

With the UCP revision now in full swing, the edition of DCInsight devotes some space to commentators' views as to what should be in (or taken out of) the future UCP 600. The first is Charles Debattista, a transport expert, who in "The Insight interview", tells us about some of the problems he sees in article 25 (charter parties), and on what he believes to be ambiguity in UCP 500 concerning whether bankers should be required to read both sides of the bill of lading. Debattista underlines the key point that a UCP revision should not be exclusively the domain of bankers: "The UCP 500," he says, "are an integral and extremely important part of the entire chain in international trade", and that means they concern transporters, insurers, importers, exporters and a range of other interests.

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TradeCard and CIT alliance presented as L/C alternative

CIT Commercial Services, one of the US' more prominent providers of factoring, accounts receivable management, credit protection, and lending services, has entered into a strategic alliance with TradeCard, the web-based platform that automates trade finance processes.

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Former Keen Lloyd chairman amongst five jailed for US$28.78 million L/C fraud

A former chairman of the diversified natural resource, energy and shipping logistics conglomerate, Keen Lloyd Group (KLG), has been sentenced to a jail term of six and a half years for his part in a massive letter of credit (L/C) fraud.

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L/C issuers in explosives probe

Bank officials who opened a letter of credit (L/Cs) connected with a consignment of explosives seized at an inland port in Bangladesh are facing questions from investigators looking into apparent irregularities in arrangements for this shipment.

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Second credit line to boost Indian exports to Iran

Export-Import Bank of India (Exim Bank India) has extended a second US$ 20 million short-term line of credit to six Iranian commercial banks.

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Shaping Iraq's trade finance sector

The recent spate of fierce factional fighting and the kidnappings and killings of foreigners in Iraq will not have boosted the confidence of those trying to re-establish a workable trade finance sector in the country that is supposed to be self-governing on 1 July 2004.

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L/Cs that fail to show up in financial frauds

The repertoire of frauds involving letters of credit (L/Cs) is large but in some financial scams, it can be the very absence of an L/C that allows fraudsters to make away with cash from their victims.

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Canadian landlords beware of L/Cs

Tenants in leasehold premises, notably in North America, routinely provide letters of credit (L/Cs) to landlords who suppose that they will provide security of payment in lieu of rent if the tenant declares bankruptcy.

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US legislators approve L/C counterfeiting law

Legislators in the US look set to make the act of counterfeiting letters of credit (L/Cs) a criminal offence.

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Nigeria legislates to gain international L/C acceptance

Nigeria's President Olusegun Obasanjo has signed the country's new Money Laundering Bill into law.

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New US supports for L/C exports to Pakistan

Improved stability in Pakistan's economic situation and probably a number of political considerations have prompted the Export-Import Bank of United States (Ex-Im Bank) to expand its financing facilities for US companies selling goods and services into Pakistan.

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Chief Information Officers impressed with HSBC's online credits

HSBC Malaysia has received an award for its automate@HSBC, a service that seems to have been successful in persuading Malaysian small- and medium-sized enterprises (SMEs) to manage some aspects of letters of credit (L/Cs) online.

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L/Cs for Iraqi oil sales to start flowing soon

The Trade Bank of Iraq, will next month start for the first time setting up letters of credit (L/Cs) to help finance the country's oil exports.

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New L/C provider in UAE

A new letter of credit (L/C) provider is to open for business in Abu Dhabi, the largest and wealthiest of the United Arab Emirates (UAE).

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Honours for L/C legal eagle

The achievements of one of America's most widely recognised legal experts on letters of credit (L/Cs) will be recognised this year when he receives an award from the largest voluntary professional association in the world.

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L/C boost for Iranian exports to Romania

Romanian importers should find it easier to open letters of credit (L/Cs) for purchases from Iranian exporters if they use a scheme devised by the Export Development Bank of Iran (EDBI) and EXIM Bank of Romania.

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Bank officials under investigation in Parmalat probe

Reports are emerging that Italian officials looking into the collapse of Parmalat, Italy's largest food company, are investigating Bank of America's Milan branch manager.

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Four banks go local in China

Four foreign banks have been given the go ahead to provide local currency services in China as it implements its commitment to the World Trade Organisation (WTO) to open up its financial markets.

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Utilities support L/Cs for US minority businesses and banks

A US utilities group has announced that it is backing a scheme to make it easier for growing minority businesses in its areas operations to obtain letters of credit (L/Cs).

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New online trade finance solution now available from S1 Corporation

Nasdaq listed S1 Corporation has said its S1 Trade Finance 2.2 system is now available. This is the latest version of the internet-based solution for managing international trade finance operations produced the company. It says the solution is used by several of North America's leading banks.

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Dozens of banks named in US class action

A US class action brought on behalf of veterans of the 1991 Gulf War has named 33 banks in a suit that holds that they helped finance chemical weapons supplies to the deposed Iraqi leader Saddam Hussein's Baathist regime before Iraqi forces invaded Kuwait.

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L/C trends point to growing confidence in Middle East trade

Despite continuing uncertainty in Iraq and Afghanistan, trends in letters of credit (L/C) pricing are pointing to growing confidence in trade with Middle Eastern countries.

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Investigators probe Indian L/C scam

Investigators in India have raided the premises of former Central Bank of India employees in connection with alleged frauds that used letters of credit (L/Cs) to a significant extent.

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L/C business booming at Commercial Bank of Dubai

Business is booming for banks in the United Arab Emirates (UAE) if their financial results for 2003 are anything to go by.

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Three indicted in US$25 million trade finance frauds

Three people have been indicted in Manhattan's Federal District Court on charges that they defrauded the New York branch of the Bank of China (BoC) out of more than US$25 million.

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Iraqi bank says it is not liable for Saddam's unsettled L/Cs

As it prepares for privatisation, Iraq's largest bank says it is not responsible for millions of US dollars worth of unsettled letters of credit (L/Cs) run up by Saddam Hussain's administration.

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Indian taskforce says stick to L/C-backed power purchases agreements

Letters of credit (L/Cs) are to remain the main security for power purchasers in India if the recommendations of a taskforce on power sector reforms are taken on board.

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India halves L/C stamp duty

India's central government says it will halve government stamp duties on letters of credit (L/Cs) as part of its budget plans to reduce transaction costs.

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Foreign banks line up for reconstruction opportunities in Iraq and Afghanistan

Foreign banks have been looking very carefully at the two emerging markets for commercial banking that have arisen out of Washington's war on terror.

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Iraq Trade Bank issues L/Cs

The recently established Iraq Trade Bank (ITB) has so far written over 100 letters of credit (L/Cs) for imports to Iraq and is considering many more applications from suppliers that want to finance trade with the war-torn country.

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Dubai-based shipping companies press for changes in UAE maritime law.

Shipping companies operating out of the United Arab Emirates (UAE) have called for changes in aspects of the Emirates' maritime law that concern the usage of letters of credit (L/Cs).

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Maharashtra state electricity board contemplates settling Dabhol L/C dispute

The Maharashtra state electricity board (MSEB) is contemplating settling an unpaid letter of credit (L/C) that has been at the centre of the long-running saga at the stalled Dabhol power project (DPC) in the Indian state.

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Editor's note

With this issue, DCInsight begins its 10th year of publication. Our first issue, in January 1995, came out only a short time after UCP 500 entered into force and contained an interview with the then Chairman of the ICC Banking Commission, Charles del Busto, explaining some of the new concepts introduced in the rules.

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CTL corporation appoints Washington Mutual as its L/C banker

A global corporation that claims to be a very large issuer of letters of credit (L/Cs) has announced the appointment of new bankers on the basis that they provide excellent service levels and technologies for international trade financing.

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Parmalat's impact on L/C business

Companies that supplied the failed Italian dairy giant Parmalat on letter of credit (L/C) terms may be confident that they will be paid. However, according to an Italian legal expert, even suppliers with L/Cs should be slightly circumspect about whether payment is a certainty.

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Public sector banks in India go for regional processing centres

Two of India's public sector banks are in the process of setting up regional processing centres (RPCs) with the aim of speeding up and creating more efficient back office operations.

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Improved access to L/Cs envisaged in ADB's Asia Pacific trade facility

Traders in around 10 developing countries in the Asia Pacific region could benefit from improved access to letters of credit (L/Cs) by the end of 2004 under a trade finance facilitation programme (TFFP) launched by the Asian Development Bank (ADB).The TFFP is designed to complement other ADB initiatives in the financial and trade finance sectors as well as various policy reform and capacity-building programmes established elsewhere in the region over the past few years.

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New IFC trade facility to double Nigerian banks' L/C confirmation capacity

The International Finance Corporation (IFC) and Standard Chartered Bank have announced they will establish a new US$40 million trade finance facility aimed at helping Nigerian commercial banks expand and improve their trade finance services.

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Arbitrage plays based on cheap L/Cs limiting India's foreign exchange availability

Letters of credit (L/Cs) are apparently being used by Indian importers in arbitrage plays that take advantage of circumstances whereby documentary credits are available at much lower interest rates than other types of credit. This enables importers to employ money raised on cheap buyer's credits available from local banks in a range of investments.

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UN transfers US$2.6 billion from oil-for-food programme to Iraq development fund

The UN has transferred US$2.6 billion in surplus funds from its now-defunct oil-for-food programme to the Development Fund for Iraq (DFI) in what appears to be the last but one chapter in the scheme's seven-year history.

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Investor alert for North American L/C scam

People in the Canadian province of Manitoba have been warned not to invest in two separate investment scams, one of which involves letters of credit (L/Cs) promising abnormally high returns.

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US$250 million L/C insurances for US exports to Iraq

Exporters from the US will be able to apply for insurance cover of up to US$250 million to cover letters of credit (L/Cs) to be issued by, or on behalf of, the Trade Bank of Iraq (TBI).

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ABN AMRO rolls trade portal out to India

A new online trade finance product introduced by ABN AMRO to its customers in India aims to make letter of credit (L/C) transactions easier for the bank's customers there.

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Short-term export guarantees to activate Iraq Trade Bank L/C business

A deal signed on 5 December by 16 countries has paved the way for the much trumpeted Iraq Trade Bank to start issuing the letters of credit (L/Cs) that will allow Iraqi agencies and oil concerns to buy big ticket foreign goods.

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Israeli surprise at Egypt's L/C demand

Egypt has demanded that the Israeli government and Israel Electric Corporation (IEC) provide a letter of credit (L/C) to guarantee the electricity company's payments to Egypt for the gas that IEC has agreed to buy in a 15-year contract.

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Bangladesh scraps L/C margins completely

Bangladesh Bank has scrapped import letter of credit (L/C) margins on all imports in a move expected to make imported goods 7 to 10 percent cheaper.

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Thailand and India sign bilateral L/C confirmation facility agreement

The Export-Import Bank of Thailand (Eximbank Thailand) and the Export-Import Bank of India (Eximbank India) have concluded an agreement that aims to stimulate new and strengthen existing trade flows between the two countries.

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Canadian legislators mull feasibility of L/Cs in agricultural programmes

Canadian legislators are considering the use of letters of credit (L/Cs) in their efforts to persuade farmers in two dissident provinces to sign up to a controversial new federal agricultural programme.

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TradeCard closes new US$10 million equity round

TradeCard, the electronic trade system that provides an online alternative to letter of credit (L/C) transactions, has announced the closure of a US$10 million equity financing.

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Bogus L/C features in theatre project

A bogus letter of credit (L/C) has emerged in a welter of documentation turned over by Cincinnati city officials to FBI agents investigating a failed theatre project in the city.

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No smooth changeover for Iraq's L/C financing

As the UN's oil-for-food programme for Iraq enters its rather bumpy final descent into history, the Trade Bank of Iraq (TBI) appears to be nearly - but not quite - ready to issue its first letter of credit (L/C).

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Cyber Merchants Exchange makes first profit in seven-year history

A company that allows US buyers to use an electronic trading platform to purchase overseas merchandise without needing to issue a letter of credit (L/C) has declared its first profit in its seven-year history.

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A bright future predicted for web-enabled L/Cs

Even if the hype of what the dot.com boom could do for trade finance has slipped into history, some solution providers of online letter of credit (L/C) services remain optimistic about the future for web-enabled transactions.

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Presidential candidate implicated in Indonesian L/C scam

A former military commander and businessman with sights on the Indonesian presidency has been arrested in connection with the alleged US$200 million letter of credit (L/C) scam apparently perpetrated by senior bank officials at Bank Negara Indonesia (BNI) (DC World News 4 November 2003 & 6 November 2003).

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IFC urges Indian banks to consider trade enhancement facility for L/C trades with Bangladesh

The International Finance Corporation (IFC) has suggested that banks in North East India should consider adopting a trade enhancement facility similar to one already adopted over the border in Bangladesh.

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Judge quits in long-running Philippines L/C dispute

The judge presiding over the Philippines' long-running case to resolve a dispute over a US$4.4 million letter of credit (L/C) has quit the case.

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L/Cs in vanguard of Russia-South Korea trade revival

A multi million dollar agreement featuring letters of credit (L/Cs) between Korea's export credit agency and a Russian bank signifies a new start for trade between two old trading partners.

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Banks go local in China's L/C market

Banks are continuing to establish or expand their positions in mainland China with the aim of seizing opportunities they believe exist with the continuing opening up of China's banking sector under World Trade Organization (WTO) agreements.

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BankMuscat and ATFP sign US$35m line of credit pact

BankMuscat of Oman and Arab Trade Financing Programme (ATFP) have signed an agreement to open a US$35 million line of credit to finance exports from Oman.

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Two new DOCDEX decisions are now on DC-PRO

Sub-Article 28(a)(iii)

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Editor's note

We devote a great deal of this issue to the UCP revision. That's not only because it will impact the world of documentary credits for years to come, but also because almost everyone seems to have an idea about what should go in it.

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Bangladesh central bank halves L/C margins on 56 categories of items

Bangladesh Bank has halved import letter of credit (L/C) margins on 56 categories of items that it considers to be essential and consumer items.

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L/Cs employed in suspect ship-breaking scheme

Customs investigators in India have unearthed a large-scale under-invoicing and money-laundering scheme at one of the India's largest ship-breaking centres according to one of India's established business dailies.

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Guarantees boost L/C business in former Soviet states

Volumes of business and the total value of business written each year are increasing under the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP), which guarantees letter of credit (L/C) business in the former Soviet states.

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Doubtful end for L/C-based Iraqi oil-for-food programme

Terrorist attacks on the UN's Baghdad headquarters, confusion in the Coalition Provisional Authority (CPA) and uncertainty over the constitution of the Iraqi Governing Council (IGC) could delay the end of Iraq's oil-for-food programme (OFP) according to a top UN official.

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Financial Objects pins turnaround hopes on new trade finance modules

A London-based developer of software for the financial services industry has announced the launch of its latest version of its banking software in an effort to arrest the company's declining sales.

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New UN notice on Iraqi oil-for-food programme

The UN has issued its latest notice to suppliers and permanent missions under the oil-for-food programme for transactions with Iraq.

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L/C refusals contribute to pressure on Myanmar's military junta

A lack of letters of credit (L/Cs) may have played a significant role in nudging Myanmar's much-criticised military junta into opening up one of world's least transparent countries.

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DC-PRO Online Community blasts Maersk's bills of lading

The DC-PRO online community of documentary credit professionals seems to have caused an international crisis in the shipping world after a contributor to a discussion forum spotted a clause in a Maersk Sealand bill of lading (B/L) that appeared to make it no longer a secure document of title.

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Former bank manager returns home to face L/C scam charges

A former bank manager wanted by Hong Kong investigators looking into a HK$460 million letter of credit (L/C) scam has voluntarily returned from Canada.

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New L/C for a revived Dabhol Power Company

The Maharashtra State Electricity Board (MSEB) should provide the new buyer of the Dabhol Power Company (DPC) an irrevocable letter of credit (L/C) equal to the sum of one month's capacity according to the financial consultants advising on the sale of the troubled Indian power plant.

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Documentary credit legal expert dies

Henry Harfield, widely recognised as one of the world's leading international financial lawyers and author on documentary credits, died in Manhattan earlier this month.

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India relaxes L/C requirements for importers

India has relaxed its requirement for importers to put up bank guarantees or letters of credit (L/Cs) if they make advance payments for foreign goods or services. Now it appears that Indian buyers can make advance remittances of up to US$100,000 for imported goods.

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L/C outsourcing company expands customer base

A small Texas-based software company that provides letter of credit (L/C) outsourcing to banks and international traders says it has expanded its customer base through the purchase of an Atlanta-based import/export outsourcing company.

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Japan joins US export credit agency to support trades with Iraq

Tokyo has decided to provide Japanese exporters to Iraq with trade insurance to cover transactions with the new Trade Bank of Iraq (TBI).

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Status quo prevails in Maharashtra L/C dispute

The Supreme Court in Mumbai has ruled that there will be no change in the legal position over a letter of credit (L/C) facility that has been centre of a three-year dispute between the now failed Dabhol Power Company (DPC) and the Maharashtra State Electricity Board (MSEB).

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Bangladesh mulls higher L/C margins

The government of Bangladesh is considering imposing higher margins on letters of credit (L/Cs) to curb what it sees as an economically unhealthy boom in imports.

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US bank to lead consortium operating Trade Bank of Iraq

Iraq's civilian administrators have appointed US bank J P Morgan to lead a consortium of international banks representing 14 countries to operate the newly created Trade Bank of Iraq.

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UN issues new notice on goods in transit to Iraq

The UN has issued a notice confirming its position on goods in transit approved under its oil-for-food programme for Iraq. The notice relates to export sales scheduled to be paid for by letters of credit (L/Cs) opened with the New York branch of BNP Paribas and arranged prior to the latest Iraqi conflict.

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Pakistan abolishes limits on non-L/C imports

The State Bank of Pakistan (SBP) has abolished limits on the cost of imports purchased without opening letters of credits (L/Cs). Certain limitations on imports will nevertheless remain.

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Bank officials allegedly collude with factory owner in L/C frauds

The Bureau of Anti-Corruption (BAC) in Bangladesh has filed 15 cases against the chairman and managing director of a clothing factory on charges of defrauding a local bank out of around US$2.3 million.

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Philippine bank clutches to L/C funds

The ailing Philippine National Bank (PNB) looks to be very close to losing its grip of funds under a letter of credit (L/C) that has been at the centre of a 17-year old dispute.

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Exports and imports delayed as Bangladesh tax inspectors strike

All of Bangladesh's customs facilities known as letter of credit (L/C) stations came to a halt for two days at the beginning of this month after customs and VAT officials walked out on an indefinite strike.

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TradeCard inks agreements with logistics firms

TradeCard, the developer of one of the online alternatives to letters of credit (L/Cs), has recently entered into new business relationships with two of the world's largest logistics and freight companies.

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IFC and Banque Belgolaise to set up US$32 million trade facility

West African importers and exporters stand to benefit from a new two-year US$32 million trade facility to be established by the International Finance Corporation (IFC) and Banque Belgolaise.

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Iraq: L/C update

More details and some criticisms are emerging over the Iraq Trade Bank (ITB) announced by the US-led Coalition Provisional Authority (CPA). It was established to guarantee payment for imported goods and services and it is expected that a consortium of international banks will be awarded the task of managing the institution soon. (DCWorld 23 July 2003).

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L/Cs favoured over open account in Philippines' ailing economy

Several blows have knocked the Philippines' economy since the Asian crisis in the late 1990s. This year the crop of economic woes includes some old problems and some new ones.

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Global banking giants collaborate to win Iraq's L/C business

The world's largest banking groups are busy forging alliances in the competition to convince US administrators in Baghdad that they should have the first bite of the cherry in Iraq's potentially enourmous market for trade finance.

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Pakistan relaxes L/C requirements

Businesses in Pakistan that need to import materials or goods for use in the manufacturing process will no longer be required to obtain letters of credit (L/Cs) in order to pay for every purchase of foreign goods.

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Thailand and China prepare for streamlined L/Cs

Thailand and China are looking to streamline procedures for letters of credit (L/Cs) as part of their efforts to facilitate trade and reduce trading costs and inefficiencies between the two countries.

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New IFC-backed trade facility for Jordan and Lebanon

Importers in Jordan and Lebanon could benefit from a new two-year US$70 million trade facility supported by the International Finance Corporation (IFC) as part of its trade enhancement programme for emerging markets.

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Trade Bank for Iraq?

A Trade Bank for Iraq that would issue letters of credit (L/Cs) with credit insurance from the US' Export-Import Bank (Ex-Im Bank) could be established by the end of this year according to a recent report.

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Standard Chartered courts India's L/C business

Standard Chartered Bank is courting Indian banks with a view to winning correspondent banking business in Southeast Asia.

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Life for Chinese fraudster

A senior manager of a Beijing company and two accomplices have been given tough jail sentences by for their part in a scam that involved bribery of bank officials and forgery of documents.

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Indian delegation raises L/C concerns with China

A 25-member delegation from India's Federation of the Indian Chambers of Commerce and Industry (FICCI) has travelled to Beijing and Shanghai in a bid to iron out some critical issues that the delegates feel are constraining Indo-Chinese trade.

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Saddam Hussein's L/C assets?

The day after the US launched its invasion on Iraq, Washington ordered a search for the assets belonging to Saddam Hussein.

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Lost documents in Indian L/C scam

Investigators are probing what appears to be a series of letter of credit (L/C) scams at banks in India.

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US Ex-Im Bank opens for L/C business to support exports to Iraq

The Export-Import Bank of the United States (Ex-Im Bank) has decided it is it is now prepared to immediately start processing applications for US exports to Iraq that involve buyers or letters of credit (L/Cs) from banks located in third countries.

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Countertrade makes an online comeback

New alternatives to letters of credit (L/Cs) have emerged in abundance in the wake of new communications technologies. Now it looks like one of the older alternatives to the documentary credit as a method of payment for international transactions is about to make a comeback.

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Energy sector L/Cs in trouble

Problems with energy financings incorporating letters of credit (L/Cs) have been well documented by D C World for more than a year. Many of these have concerned Enron related deals that have gone wrong for a range of stakeholders - from US banks to credit and credit insurers to electricity consumers and governments concerned with the Dabhol Power Plant in India.

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Indonesia threatens Swedes with L/C ban

Last month the Indonesian government launched a military crackdown in its latest endeavour to stamp out a little known but bloody 26-year rebellion in Aceh that has claimed the lives of more than 10,000 people.

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Fewer L/Cs for two years running reflect falling Saudi exports

Non-oil private sector exports financed by Saudi Arabia's ten commercial banks contracted last year by 5.9 per cent.

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New L/C fraud under investigation in Hong Kong

It may have taken members of a syndicate several years and the complicity of a former bank official to arrange false letters of credit (L/Cs) to fraudulently obtain more than HK$2 billion from the Bank of China Hong Kong (BOCHK) in one of the latest scams under investigation by Hong Kong's Independent Commission Against Corruption (ICAC).

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Changes to the ISBP

The original English version of the ISBP has now been out for more than four months. It has been read and studied by practitioners all over the world, and the ICC and the task force charged with writing the document have received a number of comments regarding the publication in general as well some related to specific paragraphs.

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China's old L/C habits revived

Last month the International Chamber of Commerce's (ICC's) anti-crime arm reported that Chinese banks are using technicalities to dishonour documentary credits on behalf of clients who are unable or unwilling to pay for imports.

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New L/C technologies for Chinese state bank

China's largest state-owned bank has licensed new data handling technologies in its efforts to improve operating efficiency and lower costs in several banking areas, including letter of credit (L/C) management.

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Italian Bank took Enron related risk on L/C

Germany's Bayerische Hypo-und Vereinsbank (BHV) has won a US$39 million judgment against Banca Nazionale del Lavoro (BNL) in respect of a dispute over which bank should assume the lending risk a loan to a contractor to perform work for an affiliate of energy trader, Enron Corp.

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Thai exporters shy away from L/Cs

Thai exporters appear to be shunning letters of credit (L/Cs) in favour of more exotic products introduced by trade finance providers eager to earn a larger slice of the export financing market.

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Hollow legal victory for Ghanaian exporter's sales to China

A Ghanaian exporter, frustrated that a Chinese firm has failed to comply with a ruling by a court in Ghana, is warning companies of the apparent dangers of doing business with unscrupulous individuals who could use Chinese state-owned organisations as fronts for dubious transactions.

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A future for L/C backed Oil-for-Food programme in Iraq?

The UN is seeking a role in Iraq. US President George W Bush does not want to see UN weapons inspectors back in Iraq so, in some quarters of the international organisation charged with contributing to world stability, an argument is building for the continuation of the UN's oil-for-food programme.

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Mashreqbank recovers more cash from Solo Industries fraud

Mashreqbank has recovered nearly two million United Arab Emirates Dirhams (Dh 2 million - US$544,586) from Madhav Patel, allegedly the principle perpetrator of the Solo Industries frauds that remain one of the largest and most infamous letters of credit (L/Cs) scams in recent years.

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New trade finance solution claims to reflect shift from L/C to open account transactions

Nasdaq listed S1 Corporation has announced the latest version of its Internet-based offering for managing international trade finance operations for the financial services industry.

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Dabhol Power Company will not invoke LC until appeal

The beleaguered Dabhol Power Company (DPC) and the Maharashtra State Electricity Board (MSEB) have reached a temporary agreement in their long-running dispute over power prices and payments.

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India's plans to boost exports to former Soviet states

India has launched a programme to boost exports to the Commonwealth of Independent States (CIS).

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US Ex-Im Bank renews short-term letter of credit program to support US exports to Pakistan

The Export-Import Bank of the United States (Ex-Im Bank) has renewed a short-term letter of credit (L/C) programme to support US exports to Pakistan - even though the US' official export credit agency is closed for routine transactions in Pakistan.

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Uncertain future for L/Cs in post-Saddam Iraq

Uncertainty defines the state of most things in Iraq, including the future for letters of credit (L/Cs) pertaining to contracts struck before the toppling of Saddam Hussain's Baath regime.

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Indian importers ordered to pay tax on usance L/Cs

Indian tax officials are asking foreign banks to provide details of letters of credit (L/Cs) after a high court ruling determined that importers should pay tax on usance interest, the charge levied by a supplier for extending credit after the delivery of goods.

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Iran offers short-term credits to Ethiopia

Export Guarantee Fund of Iran (EGFI) is ready to back short-term credits to Ethiopian buyers prepared to open letters of credit (L/Cs) to fund purchases of Iranian goods.

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Ethiopian concerns over new pre-shipment inspection directive

A new directive issued in March that revises pre-shipment inspection requirements on goods imported to Ethiopia has caused concern in some quarters of the country's business community.

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Judge orders Kmart L/C holders to return funds

A federal judge has overturned a US bankruptcy court's decision allowing Kmart Corporation to make some US$300 million in payments to key creditors it owed before it filed for protection from its creditors.

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EXIM Thailand's special offers on L/Cs for exporters

Export-Import Bank of Thailand (EXIM Thailand), in cooperation with the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI), has launched a programme to offer exporters listed on SET or MAI special benefits when using EXIM Thailand's services.

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Speculators eye distressed Iraqi L/C debts

A small and rather select band of traders are looking to cash in on some very old Iraqi debt, assuming that Iraq soon moves into a post-Saddam era.

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Worldwide impacts of war on documentary credits

One of the United Arab Emirates' (UAE's) leading bankers is expecting a slowdown in documentary credit business soon as a result of the US-led war on Iraq while an Australian company says its letters of credit (L/Cs) have been stalled because the authorities suspect its products could be used in the production of weapons of mass destruction.

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XBRL hits Japan

Sumitomo Mitsui Banking Corporation (SMBC) has become the first Japanese bank to take delivery of an online XBRL-based foreign exchange trade system that the developers, NEC Corporation (NEC), say can digitalise all documents and business processes, including the issuing of letters of credit (L/C) and bills of lading.

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Conflict in Iraq has mixed impacts on L/Cs

The US-led attack on Iraq is apparently having a mixed impact on letters of credit (L/Cs) used in regional trades.

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War on Iraq impacts on documentary credits

Fewer and fewer documentary credits have been opened for official sales of Iraqi crude over the past few weeks. It now seems likely that no more will be opened until a US-led attack on the country ruled by Saddam Hussain is complete.

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Railway truck shortage inspires L/C scam

Fake letters of credit (L/Cs) are being used in a scam to book hard-to-come-by freight capacity in railway trucks in eastern India. Once an L/C has been used to book a truck to carry grain to Bangladesh, the booking is sold on at a huge premium to a third party.

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Iranian Bank for Export Development agrees USD5 million documentary credit line with International Bank of Azerbaijan

Iran's government backed export credit agency has agreed to open a US$50 million credit line that includes a letter of credit (L/C) component to help Iranian investors and exporters do more business with Azerbaijan.

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Specialist US-Korean bank claims to be first of its kind to develop online L/C applications

The announcement by a specialist bank that serves the US' burgeoning Asian community that it will add secure letter of credit (L/C) application software to its suite of web based trade finance products suggests that secure online trading services are now spreading outside the domain of the world's major banks.

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Dubai reports no problems opening L/Cs for Kuwait

With military action on Iraq by the US and its yet undetermined set of allies seemingly a matter of weeks away, traders in Dubai are doing a roaring trade in goods that may become hard to come by close to the expected theatre of war.

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Misleading financial information provided to bank providing L/C bond security

The use of letters of credit (L/Cs) to secure publicly traded bonds is an established practice in some markets and banks that issue L/Cs on this basis expect transparent financial information from the companies that issue the bonds.

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More Enron L/C woes on the cards for J P Morgan

JP Morgan Chase & Co. may face legal challenges from some of the world's top banks over deals arranged for Enron Corp before it collapsed involving a US$500 million letter of credit (L/C) according to a 21 February report in the Wall Street Journal.

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Increasing Euro L/C demand reflects concerns over US dollar trades

Pakistan's exporters who have historically espoused the US dollar as their preferred trading currency are now demanding euros from their European trading partners as their currency gains forges ahead of the US dollar, a movement that apparently has gained momentum as the likelihood of US-led strikes against Iraq increase.

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Letters of credit may not cover investors' position in financial scam

Investors who trusted millions of US dollars to an ex-banker's investment decisions are hoping to get a share of their investments back from his estate. Mace David Howell Jr. was found dead last October at a Beverly Hills hotel, apparently after taking a suicidal overdose of painkillers.

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Philippines awaits FATF judgement on anti-money laundering amendments

After much wrangling, legislators in the Philippines have approved amendments that they hope will be tough enough to meet the standards demanded by the Financial Action Task Force (FATF), the international organisation charged with cracking down on money laundering.

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BNP Paribas expands online L/C services

BNP Paribas is expanding the range of trade finance services available through its web-based banking platform by launching a new module that allows corporate customers to handle their trade transactions online.

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L/Cs mask illicit Ghanaian teak exports

Letters of credit (L/Cs) are allegedly used by foreign operators looking to profit from Ghanaian teak exports in business activities that the government of Ghana has theoretically reserved for domestic firms.

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Bank of America can use WorldCom cash to repay debts

The court hearing WorldCom Inc.'s Chapter 11 bankruptcy case has approved Bank of America's (BA's) request to apply some of the collapsed telecom giant's cash collateral to outstanding debts according to a court order.

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Staff cuts at LTP Trade

LTP Trade, the provider of online solutions for companies seeking to source funding or risk cover for trade finance, has reduced the size of its London-based delivery team. The move follows several other cost cutting exercises at the company.

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Nigerian drugs agency cautions banks on L/Cs for drug imports

The director-general of the National Agency for Drug Administration and Control (NAFDAC), has called on Nigeria's banks not to open letters of credit (L/Cs) for imported drugs and pharmaceutical raw materials without the agency's clearance.

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India moves towards inter-bank arbitration mechanism

Banks in India will soon have a formal mechanism for commercial dispute resolution according to the Indian Banks' Association (IBA), the voluntary banks' umbrella organisation that is drawing up a blueprint for a comprehensive arbitration service.

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Mystery remains over L/Cs apparently worth US$610 million

A central Asian man arrested at Detroit Metro Airport in November (DC World News, 19 November 2002) with US$610 million in suspicious letters of credit (L/Cs) could face up to ten years in prison after pleading guilty to possession of a counterfeit alien registration card.

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Iraq could use L/Cs to show it has no weapons of mass destruction

Chief weapons inspector Hans Blix has told the UN that Iraq could produce letters of credit (L/Cs) amongst other documents to create confidence that it has no more weapons of mass destruction or proscribed activities relating to such weapons.

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Letter of credit switch pivotal in J P Morgan US Dollar 1 billion court battle

A switch from letters of credit (L/Cs) to surety bonds to guarantee Enron Corp.'s energy trades may prove pivotal in J P Morgan Chase and Co's billion-dollar court action against 11 insurers.

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J P Morgan settles one L/C dispute - and files some more

JP Morgan Chase & Co. has now settled its dispute with the 11 insurance companies that had issued Enron-related surety bonds (DC World News, 2 January 2003).

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Letter of credit switch pivotal in J P Morgan US Dollar 1 billion court battle

A switch from letters of credit (L/Cs) to surety bonds to guarantee Enron Corp.'s energy trades may prove pivotal in J P Morgan Chase and Co's billion-dollar court action against 11 insurers.

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Bogus letters of credit key to Hong Kong stock market entry

Hong Kong's Independent Commission Against Corruption (ICAC) has arrested the chairmen of three related listed companies amid allegations of doctoring financial statements to meet stock exchange listing rules.

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Eximbank demands irrevocable L/Cs for limited US business with Zimbabwe

The US' Export and Import Bank (Ex-Im Bank) has introduced new tougher conditions on Zimbabwe's private sector - including insistence on irrevocable letters of credit (L/Cs) in certain transactions - in order to stave off possible loan defaults.

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US court decides Korea First Bank must pay its revolving credit dues

The Court of Appeals of New York has upheld an earlier decision of the Supreme Court of New York Supreme Court against Korea First Bank (KFB). It failed to convince either court that the renewal of a revolving standby letter of credit (L/C) is implicitly contingent on the repayment of funds previously disbursed by the issuing bank.

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Standard Chartered Bank And Descartes Systems Group Announce Alliance

Standard Chartered Bank and the Descartes Systems Group Inc., a Nasdaq listed provider of logistics solutions have announced an alliance to deliver B2BeX, an online trade, finance and logistics platform.

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No hiding place for standby L/Cs

The body that writes accounting rules in the US has approved measures that will require companies to disclose more information to investors about the potential liabilities attached to standby letters of credit (L/Cs) they issue.

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LTP Trade launches new trade finance online sourcing application

LTP Trade, the provider of online solutions for companies seeking to source funding or risk cover for trade finance, has announced the launch of a new trade finance online sourcing application.

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Bank of New York to handle Sovereign Bank's L/C business

Sovereign Bank has forged a trade alliance with technologically savvy Bank of New York (BoNY) under which the latter will undertake import letter of credit (L/C) and export documentary collection processing for the former.

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Standard Chartered launches 'B2BeX' platform

Standard Chartered has become the latest bank to migrate its trade finance processes, including letters of credit (L/Cs) to an online platform. The bank says its B2BeX web-based trade facilitation platform will revolutionise the way that companies conduct trade.

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Enron claims foul play at Bank of America

A lawsuit filed by Enron Corporation claims that the North Carolina-based Bank of America is holding millions of US dollars as security for letters of credit (L/Cs) issued to other parties on the collapsed energy giant's behalf.

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Bali's garment manufacturers fear suppliers' L/C boycott

The bombs that killed at least 190 people in Bali last month have already left the Indonesian island's previously buoyant tourism industry reeling. Now Bali's garment manufacturers are waiting to see if they too will have to suffer the consequences of terrorism.

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Letters of credit a required ingredient in lentils fraud

A London man has admitted using letters of credit (L/Cs) and a store of false documents to fraudulently obtain more than £640,000 in a string of bogus transactions that supposedly involved lentils.

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Banking Commission approves standard banking practice; starts UCP review

The ICC Banking Commission, meeting in Rome, had two very important items on its agenda. The first of these was the document International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP). Containing more than 200 paragraphs demonstrating how UCP 500 works in practice, the ISBP is expected to encourage uniformity of practice worldwide and to dramatically cut the number of discrepancies on first presentation.

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Union Bank of India to channel Asian L/Cs through Standard Chartered Bank

Standard Chartered Bank (SCB) and Union Bank of India (UBI) have reportedly entered into a trade services agreement in which SCB will handle all letters of credit (L/Cs) issued by UBI to Asian countries.

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South Africa's empowerment companies fail to raise L/Cs

Since the post-apartheid era began in earnest in 1994, South Africa's government has made great efforts to support new companies owned and operated by black Africans. Moreover, a raft of policies is now in place that requires the country's established companies to help these new businesses.

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L/Cs help Hungary's car buyers drive a hard bargain

Hungarian leasing companies finding it tough writing new business with commercial customers are turning their attention to the apparently burgeoning number of consumers looking for new car finance.

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Nigeria and Ukraine risk L/C isolation over money laundering inaction

Nigeria's President Olusegun Obasanjo has written to the National Assembly, urging the Nigerian parliament to push through anti money-laundering legislation. If Nigeria fails to introduce legislation to curb dirty money flows, it faces a real possibility of isolation in international banking circles.

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Online L/C tools fail to excite treasury and finance professionals

Treasury and finance professionals who make widespread use of the Internet across several finance functions do not yet utilise online tools to in their letter of credit (L/C) management processes to any great degree according to a recent survey.

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Apparently genuine commercial transactions feature in another Hong Kong L/C fraud case

A Hong Kong court has sentenced a company director to 18 months imprisonment for defrauding a bank of HK$6 million in letter of credit (L/C) facilities using bogus documentation that apparently showed genuine commercial transactions.

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French banks to test drive new Bolero solutions for improved documentary credit processing

Bolero, the electronic platform on which various types of trade transactions can be conducted in a secure online environment, has announced two new solutions that aim to cut documentary credit processing costs by replacing procedures hitherto executed by mail or fax with alternative electronic systems.

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Maltese bank's African response to declining European and US L/C usage

A Maltese bank is looking to do more trade finance business in Africa in response to what it sees as a declining market for letters of credit (L/Cs) in developed US and European markets.

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US$75 million fraud case underlines enduring value of L/Cs

A subsidiary of Malaysia's state-owned oil and gas company, Petronas, has successfully sued a former senior executive in a letter of credit (L/C) fraud that cost the company US$75 million.

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More fake metal shipments in L/C deal?

Investigators have questioned the managing director of a Nepalese metals company after a container he had imported was found to be full of sand, pebbles and stones. According to letter of credit (L/C) documentation related to the container, it should have contained copper scraps.

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US-Pakistan L/C support programme finally gets the go ahead

Pakistan and the US Export-Import Bank (Ex-Im Bank) have signed a letter of awareness, enabling at last the bank to open of its letter of credit (L/C) Programme in Pakistan.

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ABN AMRO to manage import L/Cs for BANCAJA Group in Asia

ABN AMRO Bank's Global Trade & Advisory (GT&A) group has been appointed to handle Caja de Ahorros de Valencia, Castellon y Alicante's (BANCAJA) and its subsidiary, Banco de Valencia's, import letters of credit (L/Cs) in favour of beneficiaries throughout Asia.

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Korean trade financing probe launched

Regulators in South Korea have launched an intensive probe into trade financing transactions between companies and banks. The Financial Supervisory Service (FSS) announced the initiative days after it said Ssangyong Corp had obtained 114 billion won (US$95 million) from banks with fake and forged bills (DC World News, 10 September 2002).

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Saudi documentary credits under scrutiny

Documentary credits from Saudi Arabia are to be monitored closely by bank officials in the United Arab Emirates (UAE). This forms part of a wider agreement announced earlier this month in which the two countries agreed to cooperate in efforts to stem the flow of suspected terrorist and other illicit funds.

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Nigerian president denies L/C misuse

Nigeria's President Olusegun Obasanjo has denied misusing a letter of credit (L/C) in his response to allegations made against him by the lower house of Nigeria's parliament.

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Letters of credit to stimulate investment in Afghanistan

The Afghan government, intent on boosting trade and investment in Afghanistan, plans to declare the entire nation a tariff-free zone, ease the rules for those doing business in or with Afghanistan and replace complex investment requirements with simple letter of credit (L/C) backed investments.

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Russian trade finance specialist opts for LTP Trade online L/C auction system

Letters of credit (L/Cs) will soon be auctioned by Russia's MDM Financial Group, which has decided to utilise the online auction system provided by the UK's LTP Trade to source financing for their clients' international trade business.

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Philippine central bank tightens rules on letters of credit

The Philippine central bank's Monetary Board is tightening rules on the granting of loans and other credit accommodations, including letters of credit (L/Cs) with the aim of controlling the rise in the banking system's non-performing loans.

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L/C outsourcers set to expand global reach

The third and final bank and founder member of Proponix, the US-registered provider of web enabled trade finance services is set to outsource its letter of credit (L/C) processing functions to the company it co-founded.

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Bolero's drive for new business in the Middle East

Bolero and its new partner in the Middle East and North Africa, Eastern Networks, have set about persuading businesses in the region of the benefits that might follow if paper-based trade finance functions were migrated online.

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L/Cs flow across Straits of Taiwan

Letters of credit (L/Cs) have started to flow direct across the Straits of Taiwan. This follows landmark decisions by the Chinese and Taiwanese authorities to allow direct remittances between mainland China and Taiwan (DCWorld 06 August 2002).

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L/Cs point to weak demand for Korean goods

Letter of credit (L/C) arrivals in Korea declined sharply in July compared with the same month in 2001, once again casting doubts over a long awaited resurgence in demand for Korean manufactured goods in world markets.

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Tough sentences warn mainland Chinese fraudsters to stay away from L/C scams to defraud Hong Kong banks

Hong Kong's Independent Commission Against Corruption (ICAC) has secured two more convictions of fraudsters in its clamp down on letter of credit (L/C) fraud. The case is particularly significant because of the involvement of a mainland Chinese company.

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Thousands of airfreight shipments per year will not require L/Cs.

Thousands of airfreight shipments per year will go paperless as a result of a major mail order group's decision to send shipments using Bolero, the electronic trading platform over which secure transactions can take place over the internet.

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Insurers say banks should insist on safety code condition in L/Cs

Banks should be insisting that letters of credit (L/Cs) pertaining to goods shipped on vessels above 500 tonnes are covered by the new and mandatory International Safety Management (ISM) code.

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Regulators further ease Taiwan-China L/C arrangements

Regulations governing trade between Taiwan and mainland China have been further eased following new rules concerning direct remittances between banks in the two territories announced last month (DC World News, 16 July 2002).

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WorldCom joins Enron in pushing corporates to L/C secured agreements

A US telecommunications company says it will seek letters of credit (L/Cs) or advance payments for providing connection services to troubled telephone companies. Verizon Communications is one of several local telecommunications providers owed tens of millions of US dollars by the failed WorldCom Inc.

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DirectTV cashes US$15 million L/C tied to World Cup soccer coverage

Mexico's Grupo Televisa SA, the world's largest Spanish-language broadcaster plans to sue Hughes Electronics Corp.'s DirecTV in a dispute over the rights to broadcast games at the 2002 World Cup soccer tournament.

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Power industry turns to LCs to reduce newfound credit risks

Power companies that up until very recently routinely traded amongst themselves are losing confidence in other companies' creditworthiness and are turning to letters of credit (L/Cs) to manage trading risks.

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India may abolish L/C condition for textile exports

The Indian government is considering the abolition of the requirement for textile exporters to produce a letter of credit (L/C) in order to obtain an allocation to export goods restricted by quotas.

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CDCS points for Focus users

In recognition of DC-PRO Focus as a premium on-line resource for the professional development of documentary credits specialists, the International Financial Services Association (IFSA) and the Institute of Financial Services (IFS) have decided to award PDUs to members of DC-PRO Focus.

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Nike goes for IT supported L/Cs

Nike, the footwear and sportswear giant, has begun using TradeSphere, a global trade management module produced by Vastera.

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L/C flows expected under China-Taiwan direct banking arrangements

Banks in mainland China and Taiwan are embarked on a spate of relationship building after the financial authorities on both sides of the Taiwan Straits granted banks in both countries permission to open direct remittance links.

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Singapore's clamp down on terrorist L/Cs

Singapore has passed a law that will allow the authorities to cast a spotlight on letters of credit (L/Cs) that they suspect might be used to finance terrorist acts.

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Hong Kong's ICAC notches up more L/C fraud convictions

Hong Kong's graft-busters, the Independent Commission Against Corruption (ICAC) has notched up yet another set of convictions for letter of credit (L/C) frauds.

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L/C features in Macquarie Bank-led Sydney Airports acquisition

An Australian bank has factored an A$146 million letter of credit (L/C) facility into a mega-financing package used in the A$5.59 billion acquisition of Sydney Airports Corporation late last month.

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Namibian taxpayers foot the bill for non-L/C arms payment

The apparent disappearance of US$332,800 from Namibia's treasury underlines the utility of letters of credit (L/Cs), not only in making sure that goods paid for are delivered, but also in ensuring transparency in public procurement.

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Wider L/C margins work for Bangladesh

Prospects for slimmer margins on import letters of credit (L/Cs) for Bangladesh are not good. It seems as though the authorities' rationale for increased margins is working.

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Cut price L/Cs for Dubai's entrepreneurs

Budding entrepreneurs in Dubai could take advantage of cut-price letters of credit (L/Cs) under a new initiative that aims give a boost to young businesses in the emirate.

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Asian pilot for Bank of America's online trade services

Bank of America Global Treasury Services division has announced that it is piloting a web-based international trade activity management product in Asia.

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L/C online alternative extends Asian network

An online merchandise sourcing company that is also promoting an electronic alternative to the letter of credit (L/C) as a means of payment has established a joint venture in Bangladesh. This extends Cyber Merchant Exchange's (C-Me's) network of offices in Asia.

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IFC support for Algerian L/Cs

Algerian small and medium-sized businesses will most likely be the prime beneficiaries of a new revolving trade enhancement facility announced by the International Finance Corporation (IFC).

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Pakistan's deceptively cheap imports

Under invoicing of imports to Pakistan is a major problem according to an official report that also looked at the problem in terms of different payment methods.

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Nordstrom new customer for BoNY's L/C technologies

The Bank of New York (BoNY) has landed a major new customer to use its Trade Workstation technology to obtain import letter of credit (L/C) services. US fashion retailer Nordstrom will use the technology to create and transmit import L/Cs for processing at BoNY branches worldwide.

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Ghana's oil refinery threatened by lack of L/Cs

A lack of letters of credit (L/Cs) may yet force the closure of one of sub-Saharan Africa's handful of oil refineries that recently survived a potentially catastrophic fire. A blaze at Ghana's Tema Oil Refinery (TOR) came within centimetres of igniting vast stores of petroleum at the facility.

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L/C markets stable on India-Pakistan border

Despite real fears that India and Pakistan will go to war over the disputed region of Kashmir, markets in Pakistan remain perhaps surprisingly calm for the time being.

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TradeCard strengthens Asian foothold

One of the most high profile of online transaction management and financial settlement systems that claim to offer an alternative to the letters of credit in international trade is continuing to bolster its Asian position.

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Effects of Russia's 1998 banking crisis linger on

A US court has found an oil and gas company in breach of contract in a deal that apparently remains unsettled four years after a Russian bank collapse caused the failure of letters of credit (L/Cs) that should have settled the deal.

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Four directors face L/C fraud charges

The trial has begun in Hong Kong of four company directors accused of letter of credit (L/C) frauds that have allegedly cost the Hang Seng Bank more than HK$200 million.

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Prospects for Afghan L/C trades

Renewed political optimism, boosted by an influx of aid dollars, will underpin efforts to re-establish a local banking system to reconnect Afghanistan with international trading partners.

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Nigerian bank faces court tussle over L/C payment

A Nigerian bank is facing legal action for allegedly paying out Ff 340,800 (US$47,575) on a letter of credit (L/C) transaction before goods had been shipped or received.

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Bank officials dismissed for L/C irregularities

Four senior bank officials in Pakistan have reportedly been dismissed for violating banking rules for their part in a letter of credit (L/C) deal that apparently leaves the Allied Bank Ltd (ABL) waiting for a considerable amount of money.

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L/C arrivals no longer leading indicator of Korean future exports

Letter of credit (L/C) arrivals in Korea have been in freefall for 15 months according to figures released by the country's central bank.

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Electronic L/Cs for Omani corporates

The National Bank of Oman (NBO) has launched a new service to provide its business clients with a full range of banking services over the internet. Remote Corporate Banking (RCB) will enable customers to access several facilities, including letters of credit (L/Cs), from a remote computer.

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Enron L/C exposure punishes J P Morgan Chase profits

Profits at J P Morgan Chase & Co. Inc. fell 18 per cent in the first quarter of 2002, a slide due in part to the second largest US bank holding company's letter of credit (L/C) exposure to collapsed energy giant, Enron.

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Bank of New York wins outsource contract

The Bank of New York (BoNY) has been appointed by the Bank of Overseas Chinese (BOOC) to service its letter of credit processing, providing further evidence that technologically savvy financial institutions are intent on winning outsourcing business from less well tooled banks.

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Enron and WestLB lock horns in L/C case

Enron Corp is mounting a counter challenge in a lawsuit brought against it by Westdeutsche Landesbank Girozentrale (WestLB) in a New York court. The bank is seeking the turnover of the US$19.9 million it paid under a standby letter of credit (L/C) to a customer of two related subsidiaries of the collapsed US energy giant.

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Andersen's Australian L/C "blunder"

Andersen's auditing and taxation divisions managed to account for the same transaction in opposite ways, providing a double financial benefit to HIH Insurance, the recently collapsed Australian insurer. (DCWorld, 15 February 2002).

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Fraudsters sentenced for L/C-based "prime bank" fraud

Two men have been sentenced in the US for defrauding investors of more than US$600,000 in a so-called "prime bank" investment scam.

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New Philippine Exporters Facility

The Philippine Exporters Confederation (Philexport) has launched a new lending facility that will allow small- and medium-sized enterprises (SMEs) to obtain finance on the strength of export letters of credit (L/Cs) received.

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China expels L/C fraudster

A Chinese-American woman has been expelled from China after receiving a life sentence for letter of credit (L/C) frauds involving nearly US$26 million, according to the Chinese state press.

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Bolero primed for eUCP launch

Bolero, the SWIFT-backed electronic trade finance platform, says it has adopted the new eUCP rules designed by the International Chamber of Commerce (ICC) for the online presentation of letters of credit (L/Cs), effective as of midnight on 31 March 2002.

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eUCP set to go into effect

In just a few days, the first ever supplement to ICC's rules on documentary credits (UCP) will come into force. The supplement, called eUCP for short, is effective as of midnight on 31 March 2002.

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Bank's L/C refusal trips Tyson-Lewis fight plans

A US bank's refusal to issue a letter of credit (L/C) put the brakes on the much-vaunted world heavyweight title fight between boxers Mike Tyson and Lennox Lewis. Promoters hoped last week to be able to confirm the fight would be held on 8 June 2002 in Memphis but had to backtrack after a local bank refused to issue the L/C for a US$12.5 million site fee.

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Wells Fargo seeks to move L/C transactions to insured open account

Wells Fargo & Company has announced the launch of an online trade finance facility designed to cater for manufacturers and exporters who prefer open account to letter of credit (L/C) transactions.

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Moody's new L/C guidance on force majeure

A leading credit ratings agency has responded to the events of 11 September by issuing new guidance notes that underline the importance of provisions that apply to force majeure events in transactions fully supported by letters of credit (L/Cs).

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The revised ICC DOCDEX rules are now on DC-PRO

The ICC's DOCDEX rules, which provide for quick dispute settlement for cases involving ICC rules on documentary credits (UCP), have now been expanded to cover disputes under ICC rules on demand guarantees (URDG) and collections (URC) as well. The change in the rules, approved by the ICC Executive Board on 8 March, came into effect on 15 March 2002.

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Bank of America announces straight-through processing for online L/Cs

Bank of America has announced the launch of its Trade Direct Services (TDS), a web-based international trade activity management service. This is the latest component of Bank of America Direct, the bank's transaction and information platform that allows clients to manage payments, receipts and treasury activity via the internet.

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Record fall in Korean L/C arrivals

Letter of credit (L/C) arrivals in South Korea plummeted to just US$3.09 billion, down 30 per cent compared with the same period last year, according to the Bank of Korea.

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New investigations following L/C indictment for grandson of Samsung founder

South Korea's Supreme Public Prosecutors' Office has announced that it is investigating the activities of Lee Jae-kwan. The ex-vice chairman of the Saehan Group is suspected of false accounting to the tune of US$1.14 billion on the back of which he illegally obtained loans worth about US$76 million from four or five financial institutions.

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Regulator's jurisdiction supersedes international arbitration in L/C dispute

The Mumbai High Court has ruled that the Maharashtra Electricity Regulatory Commission (MERC) has the exclusive jurisdiction to adjudicate the dispute between an affiliate of the beleaguered Enron Corporation and its trading partner, the Maharashtra State Electricity Board (MSEB).

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European banks play for Iraqi L/C business

Gulf States Newsletter, 6 March 2002

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New L/C support mechanisms for Omani exports to eastern and southern Africa

An Omani bank has thrown a US$5 million credit line across the Indian Ocean to help exports and re-exports from Oman find new and wider markets along Africa's eastern seaboard.

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Bolero offers discounted membership to boost user base

The benefits of Bolero may soon filter down to more corporate and financial users with the announcement of a deal struck between the developers of the electronic platform on which messages can be exchanged online and JPMorgan Treasury Services.

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China to speed L/C dispute resolution

China revealed more reforms to streamline the administration of foreign civil and commercial lawsuits. In a 25 February announcement, the vice-president of China's Supreme People's Court (SPC), Wan Exiang, said the new arrangements are part of China's efforts to tailor its legal system to fit the demands of World Trade Organisation (WTO) membership.

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Importers reluctant to open L/Cs for goods from Pakistan

Pakistan is missing export opportunities because foreign firms are reluctant to use letters of credit (L/Cs) to purchase Pakistani goods.

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"Dr Noe" brought to book again

An infamous US conman faces fraud charges for swindling at least 20 investors out of nearly US$1.1 million in so-called prime bank schemes that used forged standby letters of credit (L/Cs).

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Insurance for L/C confirmation in Malawi

The Malawi Investment Promotion Agency (MIPA) has agreed to market the services of the nascent African Trade Insurance Agency (ATI) in Malawi. This means that eligible businesses in the southern African country will be able to obtain cover for non-commercial risks such as trade embargoes, war, expropriation and seizure of goods.

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L/Cs test boundaries of corporate governance

Letters of credit (L/Cs) have many honourable uses but some recently reported applications - where L/Cs have been used to overstate profits or to guarantee loans to top executives - seem to fall outside the boundaries of corporate governance.

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Bolero's Asian expansion

Bolero has signed up two new customers that the secure online trading platform says signals an expansion of its Asian customer base. Both are Japanese companies, the international trading division of the diversified Toray Group and Mitsui Soko, Japan's second largest warehousing company.

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L/C irregularities may be behind Jordan's sliding bank shares

Inadequately checked letter of credit (L/C) deals may be a significant factor behind Jordan's latest banking crisis. Rumours about bad loans, specifically those related to a troubled computer company involved in fulfilling state contracts, pushed shares in Jordan's banks to their lowest level this year.

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Banks gear up for eUCP

ICC has had to reprint copies of the eUCP, the new supplement to UCP 500 for electronic credits. The strong demand indicates that a number of banks are gearing up for eUCP use when the new supplement comes into force at midnight GMT on 31 March.

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'No accounts, no credit' says Oman's central bank

The Central Bank of Oman (CBO) has ordered banks to make rigorous checks on customers with credit limits as part of the authorities' efforts to strengthen an Omani banking system weakened by poor performing loans.

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eUCP now available on DC-PRO Focus

eUCP, the text of the supplement to UCP 500 for electronic presentation, has now been added to the Rules section of the site.

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Investigators reveal more fraud at Bank of China

More fraud and poor performance at the Bank of China (BOC) has been unearthed according to official investigators who have recently completed an audit of the bank's headquarters in Beijing, seven provincial branches and more than 150 lower-level branches. This follows days after it was revealed that fraud and loose management practices at a New York branch had caused the bank significant losses, including a US$20 million fine. (Fraud Alert 22 January 2002).

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Enron subsidiary accused of misrepresentation to obtain L/C

A US power-plant maker owned by bankrupt Enron - in jeopardy itself because of its parent's insolvency - has been accused by a German bank of misrepresenting its financial position in order to obtain a multi-million dollar letter of credit (L/C) according to Dow Jones News Service.

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Web-based deals top US$100 million for LCconnect

LCconnect Inc., the web-based letter of credit (L/C) origination platform has announced that the volume of executed transactions exceeded US$100 million in 2001. Fourth quarter deal flow was more than double the previous total since operations went live in May of last year.

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Bank of China fined US$20 million for misconduct

Bank of China has been fined US$20 million by US and Chinese authorities after investigators found evidence at its New York branch of misconduct that included the facilitation of a fraudulent letter of credit (L/C) scheme.

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Dramatic increase in prime bank scams

A leading international organisation devoted to investor protection has issued a stark warning to would be investors in prime bank scams, some of which are fabricated using bogus letters of credit (L/Cs).

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Confusion over proposed Somali commercial bank

Reports have emerged of a new bank to be launched in Somalia by a group of Somali businessmen. The Universal Bank of Somalia (UBSOM) will be the first commercial bank to emerge since the collapse of the government of Muhammad Siyad Barre in 1990.

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Pakistan waives LC conditions to boost exports to Afghanistan

The Pakistani authorities have announced several measures that aim to facilitate trade between Afghanistan and Pakistan. To support this aim, Pakistan has established a US$100 million fund and will further promote economic ties by reopening the Pakistan Embassy in Kabul and Jalalabad Consulate in Afghanistan during January.

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Bolero's iron ore and coal shipments go live

Bolero, the secure online trading platform, has announced that five Korean bulk carriers have signed up to the system. From February 2002 they will be participating in a trading chain with Korean steel company Posco, and metals and mining giants BHP Billiton of Australia and UK-based Rio Tinto. The five Korean bulk carriers are Hyundai Merchant Marine, Hanjin Shipping, Korea Shipping, Keoyang Shipping and Pan Ocean Shipping.

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ANZ Banking Group Joins Bolero

Australia and New Zealand Banking Group Limited (ANZ) has joined Bolero, the secure online electronic trading platform over which web-based systems for trade transactions can be run.

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More convictions for Hong Kong's L/C fraudsters

Hong Kong's Independent Commission Against Corruption (ICAC) ended 2001 by securing yet more convictions against perpetrators of frauds involving letters of credit (L/Cs). The District Court on 27 December found two company directors guilty of conspiring to cheat bank credit facilities totalling HK$10.5 million with bogus business transactions.

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Worthless L/Cs fraudulently boost balance sheet

A California court has handed down prison sentences of 10 years to two men who used worthless letters of credit (L/Cs) to mask multiple frauds perpetrated through their financial services company that fleeced elderly investors across the US of more than US$22 million. The court also ordered the pair to pay more than $7 million each in restitution.

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Egypt backs down on import restrictions

Egypt's central bank reversed in December its decision to restrict import payments to letters of credit (L/Cs) after it was strongly criticised by Egyptian businesses.

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25 Months for Failed L/C Fraudster

A US court has handed down a sentence of 25 months in jail a man who posed as a wealthy businessman to wrongfully obtain a letter of credit (L/C) worth US$11.88 million and sought to negotiate it.

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L/Cs feature in Enron collapse

Financial institutions across the world will no doubt be examining the role letters of credit (L/Cs) played in exposures to the recently collapsed Enron. They may also note that at least one bank used L/Cs to reduce its exposure to the US energy giant.

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Russian L/C revival

Local Russian banks are becoming much more involved in import financing by facilitating several types of cross-border deals, including letter of credit (L/C) transactions while there are also signs of revival in the local bank syndications market.

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False documents again used to obtain L/Cs

Hong Kong's official fraudbusters have unearthed yet another outfit using fraudulent letters of credit (L/Cs) acquired using bogus business records in an attempt to defraud a local bank.

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Faster L/C processing in Pakistan and Mexico

Banks across the world are introducing web-based facilities with the aim of cutting down the length of time it takes to establish or part-process letters of credit (L/Cs).

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L/C scheme to boost Indian exports

India's minister for state for commerce and industry has urged Romanian importers of Indian goods to make better use of a scheme in which the export-import bank of India (Exim Bank) will confirm export letters of credit (L/Cs) from pre-approved banks in the Former Soviet Union (FSU) and Central and Eastern Europe (CEE) countries.

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boleroSURF aims to streamline L/C document checking

A new online mechanism for trade settlement is to be launched in March 2002 by Bolero, the secure electronic platform over which trade data and documentation can be exchanged on the worldwide web. The system has been developed to improve the probability that the seller will be paid and the buyer will receive goods in a cross-border trade.

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FleetBoston incorporates L/C services in integrated service for corporates

FleetBoston Financial has launched an integrated online service that it says offers corporate clients a single point of access to a wide range of capabilities and information.

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L/C trade disadvantages in Bangladesh

Pre-shipment inspection companies are calling for procedures to bring imports brought into Bangladesh on open account in line with those for imports brought into the country with letters of credit (L/Cs). Traders utilising L/Cs currently face a disadvantage compared with those making direct imports who may also be earning illicit profits from tax evasion.

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L/C arrivals in Korea hit by terrorist attacks

Export letter of credit (L/C) arrivals in South Korea plummeted a massive 23.8 per cent in October compared with the same month last year according to the Bank of Korea (central bank) which links the fall to the 11 September terrorist attacks.

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New export finance programme announced

A new structured finance product aimed at high turnover, investment grade multinational exporters offers cash before shipping for import/export payments, thereby obviating the need to buy payment protection via letters of credit (L/Cs), forfaiting or export credit agency (ECA) solutions.

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Electronic supplement to UCP approved

By a lopsided vote of 63-3, the ICC Banking Commission, meeting in Frankfurt, has approved an electronic supplement to the UCP, its universally used rules on letters of credit. The vote came on a final working party draft that was the culmination of 18 months of work by the Commission.

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Bolero says SURF simplifies secure trade

A new product launched by Bolero, the electronic trading platform over which trade data and documentation can be exchanged online, claims its new product will answer the two biggest questions in any cross-border trade transaction: will the seller get paid and will the buyer get the goods?

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More L/C arrivals in Korea

Letter of credit (L/C) arrivals in the manufacturing sector are one of several positive indicators suggesting signs of increased economic activity in South Korea.

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Banks mull online trade finance support facilities

Banks are continuing to consider the relative merits of third-party and in some instances their own online systems for facilitating international trade. Meanwhile, several companies spawned in the late 1990s remain determined to persuade banks to choose their systems for enhancing the security or minimising the risk in online transactions and for ensuring compliancy in international trades.

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L/Cs fail to solve Enron's Indian difficulties

Employing letters of credit (L/Cs) to secure deals has become common practice in many quarters. But the experiences of the troubled US energy giant, Enron Corp, challenge some widely held assumptions that such L/Cs will make watertight a deal that one or more parties feels is unfair.

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Insurance L/Cs admissible in World Trade Centre claims

The UK-based Lloyd's insurance market's gross loss relating to the September11 terrorist attacks on the US has been estimated at £5.4 billion (US$7.7 billion), net of inter-syndicate reinsurance, according to a 23 October announcement from ratings agency Standard & Poor's.

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Founder becomes first Proponix customer

The back-office processing services company established last year by Bank of Montreal, Barclays Bank PLC, Australia and New Zealand Banking Group (ANZ), and trade finance technology provider, American Management Systems (AMS), has announced that it is now providing services to its first customer.

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Tradecard's Latin America debut

Tradecard, which announced its online alternative to letters of credit (L/Cs) in the first half of 2000, is launching operations in Brazil. This marks the expansion into the Latin American region by the New York-headquartered company that also has offices in San Francisco, Seattle, Chicago, Hong Kong, Taipei, Seoul, Tokyo and London.

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Emerging markets leave L/C guarantees on the shelf

Inefficiencies in local banking sectors may be one reason behind the low uptake in some emerging markets of schemes to encourage importers to buy US goods on letters of credit (L/Cs) guaranteed by US institutions.

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eUCP text takes final form

Following are excerpts from the final working group draft of the eUCP, the proposed supplement to UCP 500 for electronic presentation of documents. The excerpts are taken from the Introduction and from two draft Articles in the text of the rules.

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Bolero strikes major new deals

Bolero, the online trading platform over which logistics, financial services and commercial organisations can build online trading and settlement solutions, is gaining some significant partners in its effort to persuade the international trading community to move to paperless solutions.

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Institutions support US banks' liquidity

Letters of credit (L/Cs) are being used as one component in mechanisms introduced to maintain liquidity in the US financial and commercial sectors in the wake of last month's terrorist attacks on New York and Washington.

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United California Bank to launch online global trade finance services

One of California's largest banks is to launch online global trade finance services that it claims will provide small- and medium-sized business clients with trade initiation capabilities and extensive enquiry and reporting functions for many trade finance instruments via the Internet.

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Standby L/Cs in fight against terrorism

Letters of credit (L/Cs) are to be introduced in a streamlined procurement process designed to give allies of the US in its fight against terrorism speedier access to weaponry.

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Pakistan's switch to Islamic banking

At the end of December 1999 the Shariat Appellate Bench of the Supreme Court of Pakistan delivered a judgment in exercise of its jurisdiction to examine and strike down laws found to be contrary to the Injunctions of Islam. The court concluded that any amount, big or small, over the principal, in a contract of loan or debt is riba (interest), regardless of whether the loan is taken for consumption or for some productive activity, and is prohibited by Islamic law. The court said that all prevailing forms of interest, either in banking transactions or in private transactions, fall within the definition of riba and that all laws held to be contrary to the Injunctions of Islam shall cease to have effect from 30 June 2001.

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L/Cs prescribed for more depressed Asian markets

Despite signs of recovery in some Asian economies, credit rating agencies and export credit agencies remain cautious about recommending or backing transactions on open account terms and in the region's more depressed markets, they are tending to recommend deals supported by documentary credits.

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Sugar fraud alert

Alain Lamoine, Head of the Documentary Credits Department at Credit Lyonnais in Paris, writes: We are informed of fraudulent operations within the context of documentary credits.

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TradeCard completes US$25.5 million equity round

Online trade finance provider, TradeCard, Inc, has announced that it has raised an additional US$25.5 million of equity capital, making a total of US$70 million of equity capital raised so far. Private equity investment firm and TradeCard's major investor, Warburg Pincus, led and guaranteed the September completion of the round. Several other existing shareholders also participated in the financing.

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Pakistan cuts rates on dollar-based export scheme

The State Bank of Pakistan (SBP - central bank) has cut the mark-up rate on financings arranged through the dollar-based foreign currency export finance (FCEF) scheme.

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Trade financiers' role in the war against terrorism

Trade finance houses may need to adopt a more rigorous approach to checking the veracity of letters of credit (L/Cs) in the wake of last week's devastating attacks on New York and Washington.

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Sterling National Bank plans for Hong Kong trade services company

A New York based bank has announced plans to extend its reach in the trade services sector by moving aspects of its documentary examination process closer to the source of origin.

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Fake L/Cs used in Bangladesh to evade tax and duty

Fabric traders in Bangladesh are reportedly using forged letter of credit (L/C) documents to obtain materials from the country's Export Processing Zones (EPZs) to sell into domestic markets.

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Asian Development Bank signs agreement to guarantee L/Cs in Pakistan

The Asian Development Bank (ADB) has signed an agreement in Karachi with several international banks and the Pakistan Government to guarantee political risks associated with trade finance for small- and medium-size enterprises (SMEs) in Pakistan.

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Rabobank takes L/Cs online

The Rabobank of the Netherlands has developed a secure internet environment where its clients are able to access or request their letters of credits. Options such as import and the amendment of letters of credit are currently available in this environment. The export version is to be set for release towards the end of 2001.

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Indian politicians may be embroiled in L/C scams

The government of the north-eastern Indian state of Assam has initiated moves to bring to book a former chief minister suspected of involvement in a multi-million dollar letter of credit (L/C) scam.

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Documentary credits preferred in Indonesia

Indonesia's recently signed agreement with the International Monetary Fund (IMF) should bolster confidence in an economy where, despite a high level of political instability, economic growth has been surprisingly resilient this year.

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Coffee dealers offered online L/Cs

A major US coffee trade group has launched a standard format Internet contract that will enable North American dealers to strike and execute deals online with traders in coffee producing countries worldwide. The new contract will also increase the exposure of buyers and sellers to online letters of credit (L/Cs).

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More online L/Cs in the pipeline

Another online financial settlement provider has said it is planning to introduce a letters of credit (L/Cs) service in the future.

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Cybersleuths shut down virtual country

Search all you like in your world atlas and you will not find the Republic of Port Maria. But it did have its own website, where it offered offshore banking services.

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Insurance for high risk African L/Cs

Letter of credit (L/C) transactions within a group of Africa's most conflict-prone countries may now be eligible for insurance from a unique new World Bank supported multilateral export credit agency. This follows the official launch of the African Trade Insurance Agency (ATIA).

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TradeCard's Asian progress

TradeCard, the online payment and settlement platform that presents itself as a web-based alternative to conventional documentary credits, has announced further inroads in some of its target Asian markets.

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Malawi calls for greater L/C availability in Southern Africa

Malawian vice president Justin Malewezi has called on banks to play their part in efforts to create a Southern African free trade area.

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Chinese banks expand export finance services

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.

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US and foreign banks invited to bid online for L/C business

Proponents of the electronic letter of credit (L/C) are continuing to roll out and expand services that they claim will provide new opportunities for banks and efficiency gains and cost savings for companies.

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Commercial banks to provide L/C facilities in Malaysia, Thailand bilateral trade agreement

Traders in Malaysia and Thailand will soon be able to settle some deals between the two countries in their own currency under an arrangement in which certain commercial banks in each country will be chosen to provide letter of credit (L/C) facilities.

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Argentinian recession prompts exporters to use documentary credits

Brazilian exporters are increasingly resorting to documentary credit terms to secure payment for goods sold to Argentinian customers. This does not, however, signal healthier trade flows between the two countries.

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LCconnect and Bolero partner to offer online facilities to L/C practitioners

LCconnect and Bolero have announced an agreement that they say links for the first time a letter of credit (L/C) origination system with an electronic trade documentation system.

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Vietnamese seafood exports hampered by lack of Chinese L/C usage

The Vietnamese fishing industry is eyeing China as a potentially lucrative export market but according to a local industry spokesman, trading opportunities are hampered by too few Chinese importers being able to pay for Vietnamese seafood by letter of credit.

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L/Cs included bank_s specialist unit for Ugandan SMEs

Standard Chartered Bank is reported to have set up a specialist unit to help finance small- and medium-sized businesses in Uganda. On offer are a range of credit facilities, including loans, overdrafts and payment guarantees.

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L/Cs set to release Russian hydrocarbon potential

Letters of credit (L/Cs) are playing a structural role in multi million dollar financing packages for projects aimed at helping Russia realise its hydrocarbon potential.

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Intermediaries urged to become more accountable

Companies must start to take more responsibility for the role they play in international trade or risk the same tough sanctions imposed on banks when money laundering threatened to spiral out of control.

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L/C hedge against dot.com tenants

Real estate investment trusts (REITs) in the US are counting the cost of letting space to tenants in the so-called new economy businesses. Some REITs, however, have protected their cash flow by invoking the letters of credit (L/Cs) they had insisted on when they signed up fledgling dot.com enterprises.

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Traders warned not to ignore due diligence checks

Trading companies who elect to act as financiers to buy and sell cargoes in place of banks are being warned that they must exercise the same degree of care with transactions as are required of financial institutions.

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Bank of China adopts Bolero as merger proceeds

Bank of China Group (BOC) in Hong Kong, announced in July that it had signed up to Bolero, the electronic trading platform over which international trade can be transacted and administered online.

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Tradepaq adds insurance to its online documentary credit solutions

One of the leading developers of online payment systems for business-to-business (B2B) exchanges has announced a partnership with one of the largest providers of marine cargo insurance. Tradepaq's partnership with CNA's marine division aims to enable customers to complete trade transactions for ocean shipping faster and more reliably.

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Pakistani spice importers refuse to open L/Cs

Spice importers in Pakistan said at the end of June that they would refuse to open letters of credit (L/Cs) for new purchases until the government revokes its decision to increase import duties.

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Proponix launches online transaction processing for trade banks

A new company launched in June is to offer online transaction processing to global trade banks, and claims its systems and structures will enable client banks to provide superior customer service at a lower technology cost.

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China cracks down on the use of LCs in illegal forex acquisitions

Black marketeers are seriously damaging China's foreign exchange market and encouraging smuggling and tax frauds according to officials who have recently mounted a crackdown on fraudulent currency exchanges.

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International Playthings ditch L/Cs.

A New Jersey-based toy company has selected the cross-border electronic trade facilitator, TradeCard, to replace letters of credit (L/Cs) for trade purchases, particularly from Asia.

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Chinese compatriots to develop electronic banking

The Agricultural Bank of China (ABC) signed in June a cooperation agreement with the China Electronics Corporation (CEC) in which the two partners will cooperate to finance the development of electronic banking services.

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US manufacturer banking on cash and L/Cs in Nigerian telecom deal

A major US manufacturer and software developer of telecommunications equipment has said it is in final negotiations to provide digital wireless telephone networks to the five states of Nigeria. But Cyber Digital Inc. has also said it wants payment guarantees before it proceeds on the contracts worth a total of US$35 million.

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ABN AMRO provides launch platform for KeyCorp e-commerce products

New York-listed KeyCorp has introduced an expanded ranged of global trade product offerings, processing capabilities and delivery options as a result of its strategic alliance with Netherlands-based ABN-AMRO.

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Ghana waives normal LC requirements in deal with Nigeria

Normal letter of credit (L/C) procedures have been shelved in a deal meant to secure supplies of Nigerian oil to a Ghanaian refinery. The deal follows months of negotiations between Nigeria and Ghana - which included interventions from the presidents of both countries - apparently aimed at solving the problem of Ghana's persistent fuel shortages.

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Pennsylvania amends law on electronic credits

Sections of Pennsylvania's Uniform Commercial Code governing secured transactions and letters of credit (L/Cs) have been amended. The new law revises Article 9 to establish standards and procedures for improving security interests.

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Las Vegas court determines L/C future

A Las Vegas court has decided to issue a restraining order to prevent a bankrupt low-cost air carrier's major investor from withdrawing a $16 million letter of credit (L/C).

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L/C arrangements for Indo-Myanmar credit line

A US$15-million credit line is to be extended to Myanmar by the Reserve Bank of India (RBI) under the Indo-Myanmar credit agreement. It will be available on a free on board (FoB) basis and cover 100 per cent of the value of eligible Indian exports.

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Bank of China discloses debts

Trade financiers welcomed the release in mid-May by Bank of China (BoC) of information on its bad debts. This is the first time one of China's big four banks has released meaningful and accurate data on non-performing loans (NPLs), although the volume of debts carried by BoC is not as great as some analysts had feared.

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Ailing airline banking on L/C extension

National Airlines is asking a Las Vegas court to force one of the bankrupt US air carrier's investors to extend a US$16 million letter of credit (L/C). This would allow National to receive immediate payment from tickets sold on credit cards.

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Bolero takes to the air

Bolero, the electronic trading platform over which data and documents in international transactions can be securely exchanged, has been adopted by one of the world's largest logistic groups.

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Enron faces commission in power wrangle

Enron is continuing its battle to recover what it considers to be overdue payments from the Maharashtra State Electricity Board (MSEB) for electricity produced by the controversial Dabhol Power Company (DPC).

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Longer term help for Philippine exporters

An export promotion scheme that has already proved popular in Manila is being extended into more areas of the Philippines. Exporters in Cebu can now access long-term loans without collateral through the Trade and Investment Development Corp of the Philippines (Tidcorp) Medium and Long Term (MLT) Direct Lending Programme.

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Pakistan uses L/Cs to stimulate local business and exports

Karachi has simplified the rules and regulations governing the import and export of gold, gemstones and jewellery. Letters of credit (L/Cs) feature in several new measures introduced in May that aim to sustain local suppliers of raw materials while others ensure that jewellery manufacturers have sufficient supply of raw materials to meet export demand.

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ICC Banking Commission Guidelines for Dealing with Queries that could be the Subject of Court Action

ICC Banking Commission approves policy statement on queries and court action

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Indian bank looks to Russia to fuel its trade finance expansion

One of India's new-breed of private sector banks has been working hard over recent years to improve its provision of international trade finance services to its customers.

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Deutsche Bank and the China Construction Bank sign cooperation agreement

Deutsche Bank and the China Construction Bank (CCB) have signed an agreement to cooperate more in the provision of financial services. A recently signed letter of intent outlines ways in which the two banks will exchange information to provide enhanced credit facilities for customers.

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Nigerian importers steer clear of L/Cs

Expensive letters of credit are one of several reasons why Nigerian importers are not using conventional methods for paying for goods bought from other countries.

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ABN AMRO forges alliance with Oracle

ABN AMRO and Oracle are reported to be developing a financial services package for users of Oracle's online business-to-business (B2B) exchange software.

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Enron poised for exit from India

Enron is reported to be moving staff out of management roles in its controversial US$2.9 billion Dabhol power project located in the western Indian state of Maharashtra. This follows months of wrangling in which the US energy giant and its financial backers have sought to recover what they say are overdue payments.

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Importers with L/Cs win reprieve from Sri Lanka's GM food ban

Food importers in Sri Lanka who opened letters of credit (L/Cs) before a government ban on all types of genetically-modified (GM) food will be allowed to take delivery of consignments.

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Landmark Identrus and Microsoft agreement

Identrus has struck a deal with Microsoft that aims to make Internet transactions secure across some of the world's most popular computer operating platforms.

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Fewer LCs signal deteriorating Korean trade

Shrinking exports are causing concern in Korea. The ministry of commerce, industry, and energy recently announced that in April, exports not only shrunk for two months in succession compared with the same period last year. Meanwhile, business is in recession and prices are rising steeply.

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Sri Lankan bank introduces online L/C

Commercial Bank of Sri Lanka has become one of the latest banks to offer its customers trade finance and other banking services over the Internet.

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Swiss oil trader "corrects" L/C for Iraqi crude

Glencore International AG, the Swiss trading firm, has again fallen under suspicion of flouting regulations under the UN's oil-for-food programme for Iraq.

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UPS delivers L/Cs direct to customers

United Parcel Service (UPS) is rolling out its trade finance services with the opening of a Global Trade Finance (GTF) office in Taiwan. GTF is an internationally focused subsidiary of UPS Capital Corporation, formed in 1998 to provide one-stop international trade finance solutions to companies around the world.

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CCE Web gears up for online L/C pilot project

Toronto-based electronic cross-border payment systems developer CCEWeb has announced several new alliances with partners with which it will try to establish itself as one of the leading players in the emerging market for electronic trade finance.

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L/Cs link Alice with Darwin

Letters of credit (L/Cs) will be a key component in the financing of a 1420 km rail link between Alice and Darwin, Australia. The Build Own Operate Transfer (BOOT) project involves the construction of the railway and operating the Adelaide-Alice Springs-Darwin railway business for 50 years.

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Vietnamese initiative to boost trade with Russia

One of Vietnam's leading commercial banks is to extend more credit to Russian banks. This means that Russian importers of Vietnamese goods will have more opportunities to open letters of credit (L/Cs) without first having to put up a cash deposit.

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23 People still on the run from Guangnan fraud investigators

Another person has been convicted for her part in the multi-million dollar Guangnan (Holdings) Limited credit fraud. A total of 27 people have now been charged in relation to several alleged letters of credit (L/C) frauds worth some US$1.8 billion in total.

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L/Cs may protect creditors in tumbling dot.com company

Letters of credit (L/Cs) may prove useful to a clutch of creditors who are owed money in one of the spectacular dot.com crashes of recent months. Internet service provider PSINet warned investors on 4 April that it was short on cash, casting a shadow over the company's future.

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Bank of New York Expands Trade Finance Suite

The Bank of New York (BoNY) has introduced a new internet US dollar collections service designed to complement its existing online trade products, including letter of credit (L/C) initiation.

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CCS busts online banking fraud

London, April 12. ICC's Commercial Crime Services announced the successful closure of an online banking fraud involving fake documents worth US$3.9 billion. CCS Commercial Crime Bureau (CCB), which carried out investigations with the support of the CCS Cybercrime Unit (CCU), reported that fraudsters had published fake European banking guarantees on at least 29 different websites to lure potential clients to invest in projects and finance schemes.

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Mexican bank bags top ratings for L/C backed commercial paper programme

The banking arm of one of Mexico's leading financial institutions announced on 4 April it had closed its largest ever dollar-denominated commercial paper programme. According to Banco Nacional de Mexico (Banamex), the US$500 million facility is substantially oversubscribed and the largest ever launched by the bank.

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US acceptance of L/Cs as assets expected to boost trans-Atlantic reinsurance business.

A proposal to admit letters of credit (L/Cs) as suitable assets for certain types of reinsurance business is expected to make trades between US and European reinsurers easier. c The US' National Association of Insurance Commissioners (NAIC) Reinsurance Taskforce has recommended that L/Cs should be allowed as an acceptable asset in a multi-beneficiary reinsurance trust fund.

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L/Cs at the root of giant French fraud

One of the largest fraud trials ever heard in France has begun. It involves 124 people who allegedly defrauded banks during the 1990s of more than FFr540 million (US$75 million) in a series of pyramid schemes.

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Spotting a phony certificate of deposit

Fraudsters frequently seek to attract the payment of advance fees using fictitious bank financial instruments for many millions of dollars. In this article, ICC Commercial Crime Bureau Assistant Director Jon Merrett reproduces the exact wording used on a certificate of deposit in a recent case involving the proposed transfer of US$26 million and the US$217,000 advance fee paid to known fraudsters to procure it, before explaining in detail how to spot it was a fake.

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USBancorp plays for municipal L/C business

Acquisitive USBancorp (USB) is keen to increase the range of services it offers to its public finance customers, who frequently use letters of credit (L/Cs) to improve liquidity.

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China expels bankers for extending fraudulent L/Cs

A spokesman for the People's Bank of China (PBC - central bank) has told local media that punishments have been meted out by state-owned commercial banks to 538 people who have allegedly extended fictitious letters of credit or committed other bank frauds. Under instructions from PBC, the commercial banks have expelled 173 people from the banking sector.

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Better access to L/C facilities for Bangladeshi SMEs

Standard Chartered Bank, the International Finance Corporation (IFC) and the Dutch development agency, FMO have linked to support a US$52 million trade enhancement facility for Bangladesh.

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Chinese company director wanted for L/C frauds

A Hong Kong court has issued a warrant for the arrest of a director of a mainland Chinese window company director after he failed to appear in court to face charges related to an alleged HK$102 million (US$13 million) letter of credit fraud.

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Iraqi oil drilling contract subject to UN L/C opening

The sanctions committee of the UN has approved a contract for Russia's fourth largest oil producer to drill 33 oil wells in Iraq. The Tatneft oil company cautioned, however, that the contract, signed in March 2000 with the Iraqi state-owned North Oil Company, will become effective only when the UN opens a documentary credit with a western bank. The contract must be implemented within one year from the opening of the credit.

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Local banks not delivering export finance expertise

International financiers may perceive that new technologies and ever more sophisticated global networks of banks are making export finance easier to obtain. But perceptions of US exporters based outside major banking centres are very different.

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First ever US$1 billion L/C for India

Reliance Petroleum Ltd. (RPL) has concluded India's first US$1 billion letter of credit (L/C) facility with a consortium of domestic and institutional banks. India's privately owned oil refiner will use the facility to buy crude oil imports.

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Former PLA colonel embroiled in Guangnan fraud

A Hong Kong court has been hearing how a former colonel in China's People's Liberation Army (PLA) allegedly became embroiled in the massive set of frauds involving the troubled Guangnan Holdings group and some of its subsidiaries.

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Documentary credit may secure compensation payments for Nazi slave labour victims.

Documentary credits may be used to dislodge an apparent impasse in an arrangement under which Germany's biggest companies would recompense people employed as slave labour during the Nazi era.

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New L/C financing for Korean chip manufacturer

Creditors of Hyundai have agreed a new financing plan that will improve the liquidity of three of the Korean group's subsidiaries. Hyundai Electronics Industries will benefit from increased guarantees on export related financings from the creditors who also agreed to extend the maturity for loans worth 300 billion won (W300 billion) by one year.

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Korea First Bank moves closer to losing US$97 million L/C battle.

A New York court decision has pushed Korea First Bank to the brink of having to pay a total of US$97 million to a Japanese trader. The bank had posted a payment guarantee for the same amount made in a letter of credit (L/C) issued by a Hong Kong affiliate of the ailing Korean Daewoo group.

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Vietnamese solution for Russian L/C difficulties

Vietnam's Haiphong Paper Co. (Hapaco) is to open a trading centre in Vladivostok because of difficulties financing potentially lucrative cross-border trades with Russia. The Vietnamese listed company has cited difficulties in opening letters of credit (L/Cs) for Russian business as one reason why it has chosen to establish a local presence in eastern Russia.

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Four years for conspirator in Guangnan credit fraud

On 6 March A Hong Kong court sentenced the owner of a trading company for his part in the US$9.3 million Guangnan (Holdings) Limited credit fraud to four years imprisonment. The fraud has been the subject of several past stories in DC-PRO Focus.

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Second draft of eUCP produced by ICC working party

After three days of intensive discussions, an ICC working party drafting a proposed electronic supplement to UCP 500 has come up with a revised draft that it will soon send to ICC national committees for comment.

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Turkish L/Cs spurned by foreign companies

Confidence in Turkey's banking system may have reached a new low following the fall of the first local bank to be toppled by the country's severe financial crisis.

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Key role for LCs in Iraqi oil-for-food programme

The UN has approved a US$8 million contract for a Russian oil company to drill 45 oil wells in northern Iraq. Under the UN's oil-for-food programme, Zarubezhneft will work with another Russian company, Tatneft, in what is believed to be the first project involving foreign companies that aims to boost rather than maintain Iraqi oil production.

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Singapore bank ordered to honour fraudulent L/Cs

A court in Singapore has ordered an Italian bank to honour two fraudulent letters of credit used as security by a colourful Indian businessman. Industrial and Commercial Bank (ICB) of Singapore had demanded that Italy's Banco Ambrosiano Veneto (BAV) honour the L/Cs worth approximately US$12 million.

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Major Canadian bank to outsource L/C operations

Canada's third largest bank by assets is to outsource its letter of credit (L/C) back-office operations to the Bank of New York (BoNY). Under a multi-year agreement, clients of the Canadian Imperial Bank of Commerce (CIBC) will be able to utilise the US bank's advanced suite of Internet-enabled trade service products.

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Malaysian pressure to reform banking regulations

Bank regulators in Malaysia are under pressure to change the rules governing business-to-business (B2B) transactions over the Internet. Local banking regulations currently permit business-to-consumer payment settlement over the Internet through credit card payment gateways. Businesses purchasing large quantities of goods must however drop offline and typically use traditional payment methods such as letters of credit (L/Cs) to settle transactions.

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L/C extension for Korean exporters

The Korean government has said it will relax the rules for exporters claiming tax relief on letter of credit (L/C) transactions. Exporters will be given an extra 20 days at the close of each tax period (end-June or end-December) to produce the relevant L/C documentation. The Korean Chamber of Commerce and Industry has long been lobbying the tax authorities to extend the length of time allowed for exporters to produce evidence of L/C transactions eligible for tax relief.

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Dubai bank promises mobile L/C security

Swiss confidentiality coupled with proprietary hi-tech systems could make a Dubai-based bank's online documentary credit system one the most secure banking systems in existence. Habib Bank AG Zurich, which in January joined the burgeoning ranks of banks offering online documentary credits, claims its security is so good because all software is developed in house and is not available commercially.

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Cheaper Asian L/Cs

Tougher competition and tighter banking regulations are driving the cost of Asian letters of credit (L/Cs) down, but a wide range of sometimes sharply fluctuating rates reflects the patchy nature of Asia's economic recovery.

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Bankers eye Indonesian reforms

Signs of a revival in letter of credit (L/C) business are beginning to show in one of Asia's more fragile markets. Margins on Indonesian trade paper have over the last year slimmed from as much as 6 per cent to as low as 3 per cent. Nevertheless, only around 20 per cent of imports are currently financed by L/Cs. Rather more exporters still require the certainty of cash in advance for goods and services while very few Indonesian buyers are afforded the comfort of open account terms.

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Mixed outlook for Chinese L/C business

Hot competition amongst banks for some very high value Australian exports is leading to cut price letter of credit (L/C) confirmations for some Chinese trades. But several trade financiers continue to express concerns over transactions involving Chinese financial institutions.

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US Korean community bank reports growing L/C business

Increased volumes of letter of credit (L/C) transactions have driven Nara Bank's reported net income to a record of US$10.5 million for the year ended 31 December 2000, up 129 per cent from US$4.0 million in the previous year.

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L/Cs climb on dot.com slide

Landlords in and around San Diego do not seem too worried about the parlous state of technology firms in the apparently waning US economy. Even though Silicon Valley companies like Sun Microsystems are looking for office space and many communications companies have followed Qualcomm, Nokia, Ericsson and Motorola on the trail to San Diego, the dot.com meltdown will not concern the city's cautious landlords. They have reportedly taken to asking dot.com companies to provide substantial letters of credit to make sure the rent is paid.

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Dissident shareholder delays L/Cs from Egypt to Canada

A dissident shareholder has managed to stop letters of credit (L/Cs) from an Egyptian customer reaching a Canadian environmental technology company. Earth (Canada) Corporation learned that the shareholder, Mounir Wassef, whose proposals were rejected at the company's 10 January annual general meeting, has commenced legal proceedings before the Egyptian Courts against MISR Environmental Services Company. He alleges his rights as a former distributor in Egypt were violated.

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Wells Fargo launches B2B suite.

Wells Fargo & Company of the US has introduced a range of online payment and financing solutions for domestic and international trade.

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Enron invokes L/C

Enron has decided to invoke the letter of credit (L/C) issued to ensure it receives payment for power it supplies to the Maharashtra state electricity board (MSEB). The US energy giant now says it will now use the L/C to recover part of the debt owed to it by the state-owned electricity board. (See DC World: Enron may invoke L/C to recover Indian power debts, 17 January 2001).

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Court orders Yugoslavian bank to pay L/C guarantee

Belgrade High Court has upheld a May 2000 judgment of a lower court and ordered a Yugoslavian bank to pay more than US$46.9 million to a Greek conglomerate.

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California debts sweetened by letter of credit

California residents have grown accustomed to threats of rolling power cuts as the state struggles to meet electricity demand. Meanwhile, power generators have been threatening to call in the debts of distribution firms Southern California Edison (SCE) and Pacific Gas and Electricity (PG&E).

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Progress towards the virtual L/C

In the latest crop of companies and institutions offering electronic alternatives to letters of credit (L/Cs), Provident Bank in the US has said it will offer its customers the ec-Finance FastLC product. Cincinnati's Fifth Third Bancorp already offers a similar service through ec-Finance, which basically enables customers to complete L/C financing in what it claims is a secure environment on the internet.

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Enron may invoke L/C to recover Indian power debts

Enron, the US energy giant, is considering invoking a letter of credit (L/C) as a means to recover its dues from the Maharashtra state electricity board. The L/C is doubly backed by a state government guarantee and a sovereign government counter guarantee

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Clamp down on Hong Kong fraudsters continues

Hong Kong fraud investigators have charged a director of a state-owned company's subsidiary for allegedly conspiring to defraud a number of banks of HK$45 million. Zhang Kang-ping, a director of Ringo Trading Limited, faces two charges of conspiracy to defraud banks by obtaining letter of credit (L/C) facilities with bogus business transactions.

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Egypt's firm stand on L/C cover

Egypt is not considering lifting its requirement on commercial goods importers to provide 100 per cent cash cover on letters of credit (L/Cs).

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Documentary credit growth in Korea's stagnant economy

In Korea, documentary credit trade grew by 12 per cent in the first 11 days of December, despite a fall in both imports and exports. Exports for the period reached US$4.06 billion, 0.4 per cent lower than the same period in 1999 while imports, which usually surge at this time of year, plummeted 4.1 per cent.

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Exporters in Manila use confirmed L/Cs to secure credit

The government of the Philippines has thrown a lifeline to exporters struggling to obtain credit to fulfil foreign orders in the face of widely fluctuating foreign exchange rate. Instead of having to put up assets as collateral, exporters are only required to put up purchase orders or confirmed letters of credit under a special credit scheme operated by the Small Business Guarantee Loan Fund and the Land Bank of the Philippines.

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Documentary credits enforce Saudi beef ban

Beef-eaters in Saudi Arabia can be assured that they will not be served meat sourced from 11 European countries, provided documentary credits have been used in transactions to import beef.

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UPS Capital Global Trade Finance and ABN forge trade finance alliance

ABN Amro North America Inc and UPS Capital Global Trade Finance Corp (GTF) have announced a strategic alliance. The American arm of ABN Amro Bank NV will provide back-office support for some international trade transactions of GTF through a variety of channels, including the internet. Financial terms of the agreement were not disclosed.

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Official credit insurer covers Thai L/C exports

Thai exporters are increasingly signing up for export insurance provided by the Export-Import Bank of Thailand (EIBT), the country's official export credit agency.

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Dubai lends a hand to Sri Lankan exporters

Dubai Banks have pledged to help out Sri Lankan exporters with offshore credit facilities. Sri Lankan traders have felt at a competitive disadvantage in export markets because of the high cost or poor availability of credit to finance transactions.

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Better Letter of Credit terms for Nigeria

Foreign correspondent banks have waived their requirement for collateral on letters of credit (L/Cs) issued on behalf of Nigerian importers according to local media.

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eUCP draft sent out for comment

An ICC working party first draft of the electronic supplement to UCP 500 is being sent to ICC national committees and Banking Commission members for comment. Comments have been requested to be sent back to ICC by 12 February 2001.

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Canadian prime bank fraud warning

The Ontario Securities Commission (OSC) and the Royal Canadian Mounted Police (RCMP) have issued a warning to investors to steer clear of bogus financial instruments. They say individuals are still being lured into illegal investment scams, duped by apparently official and legitimate offers labelled prime bank notes, roll-over programmes or prime bank debentures.

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E-commerce and documentary credits: not yet, but soon, study says

Business-to-business marketplaces utilising electronic payment systems are springing up continually, posing some threat to traditional providers of documentary credits that do not fit these new business models as well as some the electronic alternatives. Judging how serious an impact e-commerce will have on paper-based methods of payment has also become a pastime for some ¯ and a new opportunity for research consultants.

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New Russian L/C regulations may run counter to UCP 500

Recently the Central Bank of Russia issued its regulations concerning clearing settlements in the Russian Federation which came into force on November 1, 2000 ("Vestnik Banka Rossii" Num. 49-50, September 19, 2000). Chapters 4-6 of the regulations outline the procedures for the handling of L/C operations.

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South African exporters: too much reliance on documentary credits?

South African exporters use documentary credits and cash in advance far too heavily according to the Johannesburg Metropolitan Chamber of Commerce and Industry. Reaching this conclusion in comments on its half-yearly export barometer figures, the chamber also claimed that companies' reluctance to use other trade instruments such as export credit insurance, for faiting and factoring has resulted in reduced export and foreign exchange earnings for South Africa.

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Afghan trade route opens up under strict controls

Islamabad is finalising plans to allow the export of six types of Pakistani goods to central Asian republics via Afghanistan on a six-month trial basis. Cement, rice, pharmaceuticals, glass sheets as well as certain pipes and hardware items will be zero-rated for sales tax and eligible to normal duty drawbacks.

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New policy protects banks against documentary credit fraud

Losses suffered by banks as a result of documentary fraud can now be insured against following the launch of a new documentary credit fraud policy by Lloyd's syndicate SVB Group.

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Eight new unpublished queries from the ICC Banking Commission

At the meeting in Istanbul, Turkey on 21-22 November, the ICC Banking Commission approved a number of new Opinions on queries submitted to it. Eight of these are printed below; more will follow as soon as they can be edited.

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Bangladesh lifts L/C requirements

Bangladesh has exempted local software houses from the requirement to finance export sales with letters of credit (L/Cs). As part of an aggressive campaign to earn about US$100 million in 2000 through software exports, the government has offered companies in the IT sector a five-year tax holiday and allowed exports of software on open account. An exporter can also retain 40 percent of his export income in foreign exchange. In 1998 the government offered the IT sector several incentives, including duty-free imports of computers.

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Top South African investment banker faces fraud and corruption charges

One of Johannesburg's top investment banker's until this year was arrested in November by South African investigators for several serious offences related to his alleged involvement with fugitive businessman Billy Rautenbachs' transport group, Wheels of Africa.

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Guangnan L/C fraudster jailed for three years

A company director was sentenced in November to three years imprisonment by a Hong Kong court for her part in defrauding several banks of US$54 million in bogus letter of credit (L/C) transactions involving the mainland Chinese food group Guangnan and its subsidiaries (see

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Electronic supplement to UCP advances; URGETS rules in suspension

The ICC Banking Commission's attempt to draft an electronic supplement to UCP 500 took a large step forward during the Commission's meeting in Istanbul, Turkey on 21-22 November. The working party developing the first draft of the supplement met for eight hours and made a report to the full Commission.

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Iraq rejects non-conforming L/Cs

Baghdad appears for now to have had the last word in the furore over its demand for payments made after 6 November for Iraqi oil to be made in Euros, or any other currency than US dollars. According to UN sources, would-be purchasers of Iraqi crude at the Ceyhan terminal in Turkey were refused permission to lift oil on 12 November, apparently because they had failed to present euro-denominated letters of credit. At least two oil tankers were subject to delays at Ceyhan due to a lack of properly specified letters of credit.

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Mixed signals from Jakarta

Up until recently, banks have been more willing to consider confirmation of short-term letters of credit (L/Cs) up to 90 days from around a dozen, mostly local banks operating in Indonesia.

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US digital signature law in effect

Last June, US President Bill Clinton used his dog's name as a password and a smart card and to sign the Electronic Signatures in Global and National Commerce Act. Since October most of the provisions in the legislation have been effective, but the law is not a universal panacea for all the headaches experienced in the online trading environment.

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New signings for TradeCard

TradeCard announced a clutch of new agreements in October, designed to add depth and breadth to its online international trade transaction network.

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ICC begins to wrestle with electronic supplement to UCP

At its upcoming meeting in Istanbul on 21-22 November, the ICC Banking Commission will hear a first presentation of what may eventually become a supplement to UCP 500 for electronic documents. A working party has been preparing a first draft of what such a supplement could look like.

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Daewoo receivers refuse to honour letters of credit.

Banks have been reluctant to issue letters of credit to the recently declared bankrupt Korean motor giant, Daewoo, according to the Korea Automobile Manufacturers Association (KAMA). Since Ford Motors pulled out of negotiations to buy Daewoo last month, KAMA says the motor manufacturer's credibility has suffered and its creditors have stopped funding, hurting production.

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State Street offers banks technology platform for L/C substitutes

Amidst the snowstorm of new solutions offering internet-based electronic alternatives to documentary credits, it would be easy to miss the entrance of a player that has the pedigree, resources and capabilities to make a difference to the arcane world of trade finance. State Street Corporation's i2eXSM secure, global electronic platform for trade management could however make a significant impact on the industry.

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UN authorises euro-banking arrangements for Iraqi oil

Additional reporting by Mark Ford

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Arab-Israeli conflict: banking and political perspectives from the Middle East

Reprinted with permission from Gulf States Newsletter, Vol 24 Issue 647, 23 October 2000

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Banks in Singapore and Japan to improve L/C availability for small firms

Singapore-based DBS Bank and Nishi-Nippon City Bank (NCB) of Japan have signed a memorandum of understanding (MoU) to foster greater collaboration and support for Japanese small- and medium-sized enterprises (SMEs) in Asia.

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