US$24 million L/C deal provides Sigma Lithium with attractive deferred payment offer

Sigma Lithium, has announced an inaugural deferred payment US$22.4 million letter of credit (L/C) for export financing with Banco do Brasil at very low interest rates.

L/C support for one of Ethiopia's largest banks provided by AfDB's transaction guarantee facility

One of Ethiopia's largest banks, Dashen Bank, is to benefit from an African Development Bank (AfDB) US$40 million transaction guarantee facility to support its trade finance activities in the country.

L/Cs feature in the largest standalone battery energy storage financing globally

Australia's Akaysha Energy has announced the closing of a 650 million Australian dollar (A$650 million - US$430 million) debt raise with a group of eleven domestic and foreign banks.

Lengthy L/C payment terms deterring bidders in Egypt's largest ever wheat tender

Lengthy payment terms on letters of credit (L/Cs) could be a key factor deterring suppliers from participating in Egypt's largest ever single wheat tender.

Nigerian firms unable to meet L/C commitments due to central bank's failure to settle forex contracts

Nigerian firms are unable to meet letter of credit (L/C) commitments as the country is plunged into a severe crisis over the central bank's failure to settle US$2.4 billion of overdue foreign exchange forward contracts.

EBRD-backed L/Cs featured in Ukraines' Oschadbank biggest trade finance deal of the year

Ukraines' Oschadbank has reported a significant increase in the volume of trade finance transactions over the year to June 2024 for large corporate clients under the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP).

Five new banks enter, three depart lucrative L/C agreement for Kenyan oil imports from two Gulf states

Kenya's Energy and Petroleum Regulatory Authority has revealed in a disclosure that five new banks have signed up to take part in the Kenyan government's lucrative US$500 million per month oil import scheme with the UAE and Saudi Arabia.

Latest Technical Advisory Briefing

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

'Magic wand' required for digital L/Cs in trade finance flows

It would take a magic wand, at least for the time being, to create a complete, end-to-end, integrated digital flow of trade finance that includes letters of credit (L/Cs), according to Akhil Nair, senior vice president for global ocean freight at global logistics and freight solutions provider, SEKO.

Presidential intervention helps Nigeria's new refinery out of L/C difficulties

Nigeria's President Bola Tinubu has ordered state-owned Nigerian National Petroleum Company (NNPC) to sell crude oil in naira to the newly opened Dangote Refinery (DC World News, 4 April 2024).

Local currency L/Cs could help boost India's trade with Russia says think tank

Local currency letters of credit (L/Cs) could help India reach its ambitious target to increase bilateral trade with Russia to US$100 billion a year by 2030, according to Global Trade Research Initiative (GTRI).

US state department says L/C difficulties hamper Libya's investment climate

The slow and non-transparent process for letter of credit (L/C) approval in Libya is prompting most firms to use European banks when they do business on L/C terms with counterparties in Libya, the US state department says in its latest analysis of the North African country's investment climate.

Deutsche Bank's L/Cs to contribute to energy transition

Deutsche Bank is contributing to the energy transition by providing letters of credit (L/Cs) to US clean energy company, Intersect Power, for the construction and operation of three standalone battery energy storage systems (BESS) in Texas.

Saskatchewan's L/C forestalls payment of disputed federal carbon tax

The Canadian province of Saskatchewan has employed a letter of credit (L/C) to forestall the Canada Revenue Agency's (CRA's) efforts to reclaim C$56 million (US$41 million) in federal carbon tax.

Larsen & Toubro expects improved L/C access after landmark global credit ratings

India's largest engineering and construction company, Larsen & Toubro (L&T), is expecting better access to letters of credit (L/Cs) as a result of ratings higher than the sovereign's 'BBB-' rating.

Challenge insurer collateral requirements to reduce L/C costs says insurance expert

Insurers typically request insureds to provide collateral as security for their obligations under a reimbursement or reinsurance agreement. This most commonly comes in the form of a letter of credit (L/C). Each year, an L/C can cost an insured tens of thousands of pounds in fees.

Ghanaian political party proposes establishment of new banks to issue L/Cs for public projects

A new political party in Ghana is proposing a radical reform of the country's banking sector that would see the government establishing banks that would issue letters of credit (L/Cs) to support public sector projects.

Iran and Russia continue to mull alternative L/C and other financing arrangements

Iran's central bank chief, Mohammad Reza Farzin, is continuing to call for closer financial ties with Russia that would facilitate letter of credit (L/C) and other transactions between Iranian and Russian banks.

New Opinions from the ICC Banking Commission

The latest ICC Opinions from the Banking Commission Meeting held in July 2024 are now available under the Trade Finance Channel of the Digital Library:

Pakistan to push the case for Chinese yuan denominated L/C transactions

Amidst a persistently strong US dollar and fearful of shrinking foreign reserves, industry leaders in Bangladesh are hoping that Prime Minister Sheikh Hasina will successfully push the case for the use of the Chinese yuan in international transactions during his visit to China this week.

US updates antiboycott list, L/C providers beware

The US department of commerce's Bureau of Industry and Security (BIS) has published its first quarterly update of the boycott requester list.

Sri Lanka's 2-year L/C drought expected to end under debt restructuring

Sri Lanka's major country creditors have approved a major debt restructuring deal valued at a combined US$10 billion that should allow letter of credit (L/C) flows that dried up two years ago on the island state to resume.

L/Cs feature in IFC trade facility for First Capital Bank Moçambique

To support trade flows to and from Mozambique and to strengthen the country's financial sector, the International Finance Corporation (IFC) has announced the agreement of a new trade finance guarantee facility that includes letter of credit (L/C) support to First Capital Bank Moçambique (FCBM).

Afreximbank facility to help CBZ Bank access L/Cs in Zimbabwe's dollarised economy

Zimbabwe's largest bank, CBZ Bank, says it already has customers lining up to take advantage of a new facility provided by the African Export-Import Bank (Afreximbank) that will provide them with improved access to letters of credit (L/Cs).

Raiffeisen partners Surecomp to streamline L/C and guarantee processing

Canadian fintech Surecomp, which specialises in global trade finance solutions for banks and corporates, has been selected by Raiffeisen Bank International (RBI), one of the leading banks in Austria and the wider Central and Eastern European (CEE) region, to reinforce their trade finance customer engagement.

Discounted L/Cs on offer for foreign investors in Vietnam

Discounted letter of credit (L/C) fees are amongst the incentives on offer from Saigon Hanoi Bank (SHB) for companies operating in Vietnam that are either wholly or partially owned by foreign investors.

Largest energy storage project in Arizona features multi-million dollar L/C facility

A multi-million dollar letter of credit (L/C) facility features in the US$513 million financing closed last week by solar and energy storage project developer, Recurrent Energy, for its 1,200 megawatt per hour energy storage project in Arizona.

Afreximbank extends trade finance facility to help DRC's Rawbank access L/Cs

African Export-Import Bank (Afreximbank) has signed an agreement for a US$100-million trade finance facility in favour of Rawbank to assist the bank increase trade flows into and out of the Democratic Republic of Congo (DRC).

UniCredit right to refuse L/C payment under sanctions says appeal court

A UK appeals court has overturned a ruling against UniCredit in a high-profile sanctions case, determining that the bank was justified in refusing payments under letters of credit (L/Cs) issued prior to Russia's invasion of Ukraine.

Ukrainian and Swedish businesses mull L/C opportunities to develop business links

Representatives of Ukrainian companies have been meeting with their Swedish counterparts to explore new ways of doing business, including on letter of credit (L/C) terms.

Healthcare provider outlines strategy to monetise standby L/C for stock repurchases

Healthcare provider Novo Integrated Sciences (NIS) says HSBC has issued a 'ready, willing and able letter' that will enable the company to embark on a programme to monetise a standby letter of credit (L/C).

AfDB facility for Zimbabwe's First Capital Bank to improve L/C access

The African Development Bank (AfDB) has approved a US$15 million trade finance package for First Capital Bank (FCB) in Zimbabwe to help bolster intra-African commerce in line with the goals of the Africa Continental Free Trade Area.

Société Générale launches sustainable GTB framework

Société Générale has launched what it describes as a global transaction banking (GTB), framework that focuses on the bank's sustainable solutions for its large corporate clients, including those writing letter of credit (L/C) business.

Successful eBL transactions integrated with digital L/Cs on Surecomp's RIVO trade platform

Surecomp has announced the completion of successful electronic bills of lading (eBL) transactions bringing together multiple parties via its collaborative trade finance platform, RIVO.

Nigeria reports plummeting L/C payments data

Nigeria's letter of credit (L/C) payments plunged by 63 per cent in the first quarter of 2024 compared with the same period in the previous year, according to Central Bank of Nigeria (CBN) international payments data.

Anti-boycott advisory could impact on L/C business between the US and Turkey

The US' Bureau of Business and Security (BIS) has issued an anti-boycott advisory regarding Turkey that could impact on letter of credit (L/C) business written between the US and Turkey.

Supreme Court of Canada reaffirms fraud exception principle in L/Cs

The Supreme Court of Canada (SCC) has denied leave to appeal the recent ruling by the Alberta Court of Appeal (ABCA) in the case of Pacific Atlantic Pipeline Construction (PAPC) versus Coastal GasLink Pipeline (CGL).

Surging L/C business helps Ameriabank win top IFC and EBRD awards

A surge in letter of credit (L/C) and guarantee business has helped Ameriabank to receive prestigious awards from international financial institutions in recognition of its trade finance operations.

Philippine government support for L/Cs for exporters and MSMEs

Government financing institutions in the Philippines are including support for letters of credit (L/Cs) in financing programmes and facilities they are making available to exporters and micro, small and medium enterprises (MSMEs).

ADB and Citi ink risk participation agreement to support L/Cs amongst other trade and supply chain offerings

The Asian Development Bank (ADB) and Citi have partnered to sign a master risk participation agreement to enhance access to supply chain financing for small- and medium-sized enterprises (SMEs) and support more than US$100 million in additional annual trade across Asia and the Pacific.

Saudi Eximbank and SNB sign documentary credit insurance and Murabaha agreements

The Saudi Export Import Bank (Saudi Eximbank) and the Saudi National Bank (SNB) have signed an insurance agreement to enhance documentary credits and a major Murabaha agreement to finance the export of Saudi non-oil products.

Prominent US insurer takes legal action against China Construction Bank's fraudulent reinsurance L/Cs

Porch Group, a prominent US company specialising in homeowners insurance and home inspection software, has taken legal action against China Construction Bank (CCB), accusing the financial institution of involvement in reinsurance fraud.

New Delhi mulls L/C guarantees as banks face difficulties with Russian payments

India is contemplating extending guarantees on lenders' letters of credit (L/Cs) as New Delhi seeks ways to support trading links with Russian counterparties.

L/Cs exempt from Nigeria's new cybercrime levy

Letters of credit (L/Cs) have been exempted from an order from the Central Bank of Nigeria (CBN) to banks in the country to begin imposing a cybersecurity levy on many types of transactions.

L/C boost for burgeoning Saudi automobile sector

Data released by the Saudi Central Bank (SCB) has revealed that a significant increase in import letters of credit (L/C) helped boost Saudi Arabia's car imports in 2023 by a massive 40 per cent.

Singapore's banks restrict L/Cs for Russian shipments

Singapore's biggest banks are apparently responding to pressure from Washington not to participate in trade financing that could be seen to be linked to transactions that evade the G7-led price cap on Russian oil or other sanctions imposed on Moscow in response to its military action in Ukraine.

ITFC's comprehensive financing package for Cameroon to support L/Cs for SMEs

Cameroon has secured a US$800 million funding package from the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB).

WeWork landlords could swap L/Cs for equity in proposed bankruptcy restructuring agreement

Landlords of WeWork with letters of credit (L/Cs) to guarantee that funds would be available to pay rent even if the now collapsed workspace provider faced financial difficulties may be able to swap their debt holdings for shares in the newly restructured company.

IMF counts the cost of Egypt's L/C policy

The International Monetary Fund (IMF) has been counting the cost of Egypt's controversial policy over the last two years to significantly limit the availability letters of credit (L/C) as a measure to control the country's balance of payments and manage foreign exchange reserves.

L/C difficulties may be behind oil cargo stranded outside Dangote's new super-refinery

Difficulties experienced by Nigeria's new Dangote Oil Refinery in securing a letter of credit (L/C) may have left a shipment of US crude oil stranded offshore Nigeria for over a month.

Partial shut downs at Pakistan's vehicle plants may lengthen if SBP fails to process L/Cs

Toyota and Suzuki will partially shut down vehicle assembly operations in Pakistan next month due to raw material shortages, supply chain disruption, exchange rate volatility and curbs on the letters of credit (L/Cs) they need to import materials.

Doha Bank reveals Qatar's L/C support for Bangladesh

The CEO of Doha Bank has revealed that the Qatari bank has extended support to banks in Bangladesh to help them finance imports of essential goods on letter of credit (L/C) terms.

Azerbaijan's TuranBank joins ADB's L/C supportive and growing trade finance network

Azerbaijan's TuranBank last week announced it had become the latest bank to enter into an agreement to finance international trade operations with the Asian Development Bank's (ADB's) Trade and Supply Chain Financing Programme (TSCFP).

IFC and DBS launch US$500 million facility to support L/Cs and promote trade flows in emerging markets

The International Finance Corporation (IFC) and Singapore-based DBS have signed a US$500 million facility under the IFC's Global Trade Liquidity Programme (GTLP).

February issue of Documentary Credit World

The February 2024 issue of DCW, the source for LC and Trade News & Analysis is now available under the Digital Library.

Court to decide whether Trump's bond is good enough without L/C backing

Donald Trump has posted a reduced-rate US$175 million civil fraud bond that his lawyers maintain will secure potential damages should the former US president lose his appeal challenging a judge's finding that he lied about his wealth as he grew the real estate empire.

Genesis Global launches credit insurance application for L/Cs, guarantees and a range of banking activities

A new solution to automate bank processes for offsetting credit risk in lending and financing businesses has been launched by Genesis Global.

Afreximbank resolute in providing L/Cs for controversial East African Crude Oil Pipeline

The African Export-Import Bank (Afreximbank) is finalising a US$200 million funding plan that includes letters of credit (L/Cs) and guarantees to support the controversial East African Crude Oil Pipeline (EACOP), according to Denys Denya, the bank's senior executive vice president for finance, administration and banking.

January issue of Documentary Credit World

The January 2024 issue of DCW, the source for LC and Trade News & Analysis is now available under the Digital Library.

Standby L/Cs exempted from Nigeria's ban on foreign capital collateral for naira loans

Standby letters of credit (L/Cs) are excepted from a new notice issued by the Central Bank of Nigeria (CBN) that bans the country's commercial banks from accepting foreign currency as collateral for naira loans.

RBZ refuses to issue L/C to facilitate Indian business mogul's ambitions in Zimbabwe

The Reserve Bank of Zimbabwe (RBZ) has scuppered an Indian businessman's plans to create a large-scale sugarcane ethanol production plant in Zimbabwe by refusing to issue a letter of credit (L/C) in support of the project.

Oil marketers securing L/Cs to buy from Nigeria's new landmark oil refinery

Oil marketers in Nigeria are in the process of securing letters of credit (L/Cs) to buy petroleum products from the newly constructed Dangote Oil Refinery.

South Korea and Poland move to facilitate L/C flows as business links deepen

South Korean commercial and state-run banks are looking at opportunities to forge deeper and closer ties with Poland, including establishing banking relationships to facilitate letter of credit (L/C) flows to support trade between the two countries.

Latest Digital Commercialisation Briefings

Just published - two more Digital Commercialisation Briefings from the ICC Banking Commission.

IFC to support Burundi's BCB to boost L/C volumes and stimulate small business growth

The International Finance Corporation (IFC) and Burundi's Banque de Crédit de Bujumbura (BCB) have announced a partnership to boost trade and growth by expanding access to financing for thousands of micro-businesses and small and medium-sized enterprises (SMEs) in the country, including informal businesses.

Joining EBRD's TFP will help Ukraine's largest bank sustain its L/C business

Ukraine's largest bank, Privatbank has joined the European Bank for Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP), which provides guarantees to international commercial banks, thereby covering the political and commercial payment risk of transactions undertaken by partner banks in the EBRD regions.

Trump provides no reason for failure to obtain L/C for surety bond

Donald Trump has claimed he has been unable to secure a bond - possibly secured by a letter of credit (L/C) or real estate - that he would need to avoid or delay paying the US$464 million the former US president has been ordered to pay by courts in potential damages and fines resulting from his civil trials over the last year (DC World News, 11 March 2024).

Latest Technical Advisory Briefing

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

AfDB agrees US$15 million trade finance transaction guarantee for NMB Bank Zimbabwe

The African Development Bank (AfDB) is continuing its drive to sign African banks up to its support facilities for letters of credit (L/Cs) by agreeing a US$15 million trade finance transaction guarantee facility with NMB Bank Zimbabwe (NMB).

BCGE fails to pin blame on shipowner for oil trade non-payment, criticised for poor L/C management

Banque Cantonale de Genève (BCGE) has failed in its attempts to pin the blame for non-payment related to the collapse of oil trader Gulf Petrochem on a shipowner who permitted the alteration of a set of bills of lading.

RA Investments announces standby L/C provision and monetisation offerings

RA Investment has announced a comprehensive suite of trade finance services that includes the provision of standby letters of credit (L/Cs) and bank guarantees and a standby L/C monetisation offering.

Apple revises L/C requirement for other companies to launch app stores on iPhones

Apple has revised its rules for developers wanting to launch app stores on iPhones in the EU, a move the reluctant tech giant has been forced to do by European legislation which came into force last week and which is intended to break Apple's market monopoly.

Moscow and Tehran maintain pressure for BRICS alternative to SWIFT

Russia and Iran are keeping up the pressure for the BRICS bloc to establish an alternative to the SWIFT payment system and create a trading mechanism that would allow the group of large emerging economies to use currencies other than the US dollar.

L/Cs could help Trump through appeal process

Letters of credit (L/C) could help Donald Trump avoid or delay paying the US$540 million the former US president has been ordered to pay by courts in potential damages and fines resulting from his civil trials over the last year. If he fails to pay by 25 March, New York's attorney general says Trump could see his assets being seized.

L/Cs continue to support expansion of insurance facility to keep Ukraine's exports flowing

Letters of credit (L/C) are again a key component in a major expansion of the Unity insurance facility developed by global insurer Marsh McLennan, the Ukrainian government and Lloyd's of London.

Import L/C openings in Bangladesh hit a 16-month high

Letter of credit (L/C) openings for imports into Bangladesh hit a 16-month high in January, despite the country's severe dollar crisis according to Bangladesh Bank data.

Nordea Bank's new working capital solution to benefit documentary or open account trading

A new working capital solution from Nordea Bank has been developed to help companies to bridge gaps in the trade cycle by extending credit from the production or purchase of goods to the final sale.

AfDB extends trade finance guarantee to Access Bank in Democratic Republic of Congo

The African Development Bank (AfDB) has approved a US$7 million trade finance guarantee facility to Access Bank in the Democratic Republic of Congo (DRC).

CredAble's partnership with SBIGFL aims to transform L/C bill discounting and other trade transactions

State Bank of India subsidiary SBI Global Factors (SBIGFL) has announced a strategic business partnership with Mumbai-headquartered CredAble, a supply chain financing fintech that has developed a digital banking platform to help vendors, distributors and dealers identify capital financing opportunities.

Landlords not renegotiating leases could draw on L/Cs says WeWork

Landlords that are not renegotiating leases with beleaguered WeWork could draw on letters of credit (L/Cs) to receive rent the bankrupt co-working giant is withholding, the company said in a filing.

Citi backs revival of Contour's blockchain L/C efforts

Contour, the blockchain trade finance network and one of the best known developers of digital letters of credit (L/Cs) that failed last year, (DC World News, 31 October 2023), has been acquired by Singaporean startup, Xalts.

Greenpower expands existing L/C facility with EDC to produce electric vehicles to meet demand

GreenPower Motor Company, a Canadian a manufacturer of all-electric medium and heavy-duty vehicles, has entered into a revolving loan agreement with Export Development Canada (EDC) for an up to US$5 million facility to fund vehicle production to fulfil customer orders.

Commerzbank chooses Surecomp's solution for back-office processing of L/Cs and other instruments

Germany's Commerzbank has chosen to deploy Surecomp's DOKA-NG solution for back-office trade finance processing across multiple entities.

L/C confirmation market set for growth says new research

The global letter of credit (L/C) confirmation market generated US$3.91 billion in 2020. It is projected to generate US$5.09 billion by 2031, and grow at an annual rate of 2.7 per cent between 2021 and 2030, according to a new report published by Allied Market Research.

L/C facility features in Vesper Energy's US$590 million innovative financing for mega solar project

Vesper Energy, a developer, owner, and operator of utility-scale renewable energy assets, has announced the closing of an innovative financing that includes a letter of credit (L/C) facility for its Hornet Solar project.

MUFG and collaborators to explore viability of stablecoins as an L/C alternative in emerging markets

Japan's largest bank, MUFG, has partnered with digital asset platform, Progmat, blockchain trade finance specialist, Standage, and enterprise wallet developer, Ginco, to explore the viability of using permissionless blockchain stablecoins for international trade settlements.

Distributors up in arms about Apple's L/C demand to sidestep EU law

A new EU law called the Digital Markets Act (DMA) will soon go into effect to ensure that that large online 'gatekeeper' platforms behave in a fair way in digital markets.

SBP eases L/C regulations for importers, demands due diligence for TBML risks

The State Bank of Pakistan (SBP - central bank) has granted permission to financial institutions that are authorised dealers in foreign exchange to proceed with import advance payments, without requiring prior approval from the central bank, provided they are backed by irrevocable letters of credit (L/Cs) or invoices.

L/Cs to secure Sidra's Shari'ah-compliant commodity trade finance fund

Sidra Capital, a Shari'ah-compliant asset management firm headquartered in Saudi Arabia, has launched its first Singapore-domiciled Sidra Asian Opportunities Investment I variable capital company (VCC), a new corporate structure for Singaporean investment funds.

L/Cs at heightened risk under proposed expansion of US anti-boycott rules

The US House Foreign Affairs Committee has voted to advance a bill that would expand existing anti-boycott laws in the country amidst Washington's concerns that the Boycott, Divestment and Sanctions (BDS) movement is targeting Israel in retaliation for its military assault on Gaza.

Revolving L/Cs help bring largest solar-storage project online

Financing on a scale not previously seen for an integrated solar and energy storage project involving revolving letter of credit (L/C) facilities has led to the activation of the largest solar-storage project in the US, according to project developer Terra-Gen and its engineering, procurement, and construction contractor, Mortensen.

Mitech and Tesselate partner to accelerate trade finance digitisation

Trade finance fintech Mitech has partnered with Tesselate, a provider of adaptable and scalable business systems, to develop a new platform aimed at accelerating the digitisation of trade finance processes for banks.

Kenya to exit L/C deal with three Gulf oil exporters

The Kenyan government has told the International Monetary Fund (IMF) that it is looking to exit its deal with the national oil exporters of Saudi Arabia, Dubai and Abu Dhabi, that provides for six-month credit for oil imports, backed by letters of credit (L/Cs) issued by participating commercial banks.

Middle East's largest insurance deal covers L/Cs for SABIC's sales worldwide

The Saudi Export Import Bank (Saudi EXIM Bank) has signed an insurance agreement with Saudi Basic Industries Corporation (SABIC) to provide cover for the Saudi petrochemical giant's sales transacted on letter of credit (L/C) terms worldwide.

Banco do Brasil suspends yuan L/Cs for trade between Brazil and Argentina

Banco do Brasil has reportedly suspended letters of credit (L/Cs) for imports or exports coming or going to Argentina in yuan.Only L/Cs in US dollars are now being issued by the oldest bank in Brazil according to reports that suggest the move may be related to Argentina's decision on 1 January 2024 not to accept its invitation to join the BRICS group of nations.

L/Cs our 'most material exposure' says Lloyds of London as it imposes new limits on documentary credits

The Lloyd's of London insurance market has imposed variable limits on exposures to letters of credit (L/Cs) that ensure an insurer or reinsurer meets capital and risk management requirements. The limits are based on issuing banks' credit ratings.

Ontario to require L/Cs to safeguard temporary and vulnerable workers

In an effort to safeguard temporary and vulnerable workers, as of 1 July 2024, temporary work agencies and recruiters must obtain a license to deploy staff for work within the Canadian province of Ontario.

Expensive L/Cs and forex woes depress Nigeria's consumer goods sector

The majority of companies in Nigeria's consumer goods sector holding foreign currency-denominated debts faced more expensive letters of credit (L/Cs) amongst other financial hardships in 2023 as a result of the weakened naira, according to a report published by Meristem Securities.

Bridge Bank Group Côte d'Ivoire expands trade finance offering to include L/Cs

Bridge Bank Group Côte d'Ivoire (BBG CI) has expanded its suite of financial services to provide trade finance products including letters of credit (L/Cs) for its target market of small- and medium-sized enterprises (SMEs) operating in the west African country.

More African banks sign up for L/C support from development institutions

Two more African banks have signed up for facilities provided by development institutions that guarantee trade finance instruments, including letters of credit (L/Cs).

Bank Sepah initiates L/C for imports from Russia to Iran as Moscow and Tehran move closer

Iran has closed two deals with Moscow to facilitate its imports from Russia, Iran's state-run IRNA news agency reported on 27 December 2023.

Nigeria's foreign exchange crisis prompts central bank to extend L/C timeline

The foreign exchange crisis in Nigeria has led the Central Bank of Nigeria (CBN) to make significant changes to timelines for letters of credit (L/Cs).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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)

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.

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.

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.

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.

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.

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).

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).

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.

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).

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Trade Technologies announces production release of TradeBridgeAPI Bank

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

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).

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.

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.

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.

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.

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.

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.

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.

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,

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).

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.

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).

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.

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.

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).

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.

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).

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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).

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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".

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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).

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.

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.

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).

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.

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.

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.

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).

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.

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.

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.

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).

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).

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.

Sanctions advisories for the maritime industry

Practical challenges and recommendations for financial

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.

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.

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.

First sustainable L/C for HSBC Philippines

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

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.

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.

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.

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.

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.

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).

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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).

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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).

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.

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.

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.

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).

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.

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.

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