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

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

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More L/C support for troubled US boilermaker

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

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

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

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Contour launches trade finance innovation lab in Singapore

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

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

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

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

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

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

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

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

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

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

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

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

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

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Contour launches network for domestic L/Cs in Bangladesh

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

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Banks launch blockchain platform for domestic L/Cs in India

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

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

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

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

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

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

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

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

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

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

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

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South Africa mulls L/C support for key export sectors

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

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

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

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L/Cs no longer needed for Tunisian goods entering Libya

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

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

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

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

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

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

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

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

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

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

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

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Nova Scotia's tourism support L/Cs under fire

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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ITFA publishes guide to controversial and misunderstood structured L/Cs

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

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L/Cs feature in GTR Best Deals 2021

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

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

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

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

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

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

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

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

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

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

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

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

Indian importers should ditch letters of credit (L/Cs) in favour of supply chain trade finance according to the founder of a fintech focused on alternative ways for corporate importers to control how their international suppliers are funded and paid.

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Yemeni multinational HSA accused by UN panel of "elite capture" of Saudi-funded L/C mechanism

Yemeni multinational Hayel Saeed Anam Group (HSA) has been accused by the UN Security Council Panel of Experts of making a profit of about US$194 million between mid-2018 and August 2020 from the Saudi-funded letter of credit (L/C) mechanism that was said to have been intended to enable importers to bring foodstuffs and other essential items into the war-torn country.

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L/C confirmation market projected to reach nearly US$5 billion by 2027

The global letter of credit (L/C) confirmation market size is projected to reach nearly US$5 billion by 2027 according to market research company, Valuates Reports.

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Invenergy says L/Cs feature in largest construction financing for largest US wind project

Renewable energy developer Invenergy, says letters of credit (L/Cs) feature in its recently completed construction financing for its largest wind energy development to date, the 999 megawatt Traverse Wind Energy Centre.

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L/Cs contemplated in efforts by ICC and Finastra to bridge the trade finance gap

Letters of credit (L/Cs) may be included in a strategic initiative to tackle the growing trade finance gap launched by the International Chamber of Commerce (ICC) and one of the world's largest fintechs, Finastra.

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Focus on L/Cs in Standard Chartered's new sustainable trade finance solutions

Letters of credit (L/Cs) are one of Standard Chartered's focus offerings in its launch of a new suite of sustainable trade finance solutions across Asia, Africa and the Middle East, Europe and the Americas.

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Contour partners with ThoughtWorks to strengthen its presence in China's L/C market

Contour, the blockchain-based open industry platform focused on digitising trade finance, has partnered with international software consultancy ThoughtWorks in China to strengthen its position in one of the world's largest letter of credit (L/C) markets.

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Bolero launches white-labelled trade portal-as-a-service solution with L/C functionality

Trade finance digitisation specialist Bolero International has announced what it describes as the industry's first white-labelled trade portal-as-a-service solution for financial institutions.

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Zimbabwe's L/C shortage persists

Zimbabwean importers are finding letters of credit (L/Cs) increasingly hard to come by, reportedly because the foreign exchange auction system is failing to satisfy demand.

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Trade finance and L/Cs crucial in Africa's build-back-better strategy

Facilitating trade finance and providing letters of credit (L/Cs) are priorities in Africa's efforts to rebuild its economy in the wake of the coronavirus pandemic according to the president and CEO of one of the continent's major regional developments.

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Budget review reveals South African government unilaterally sanctioned L/C settlement to help ailing national airline

A demand of 267 million South African rand (R267 million - US$17.9 million) for financially troubled national airline South Africa Airways' (SAA) government guaranteed letters of credit (L/Cs) was made and settled in the country's 2020-21 financial year.

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Jail for former bank CEO who used unauthorised L/Cs to fraudulently obtain US$1.6 million

A former bank CEO has been sentenced to prison by a court in the US state of Minnesota for falsifying bank records.

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EximBank India gets additional funds to provide L/Cs for export sales

Export-Import Bank of India (EximBank India) has received the equivalent of around US$225 million of additional state funding to help support Indian exports.

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Laboured L/C processing a bottleneck in Bangladesh's investment climate

Laboured letter of credit (L/C) processing is one of the remaining bottlenecks in Bangladesh's investment climate according to Japanese delegates at a Japan-Bangladesh trade and business roundtable in Dhaka.

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Fintech Tradeteq raises US$9.4 million to enable L/C distribution

Tradeteq, a fintech that develops technology for bank asset distribution, has secured funding of an additional US$9.4 million from a consortium of US technology investors.

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SBI (California) opts for Surecomp's L/C and documentary collections solution

Trade finance solutions provider to banks and corporates, Surecomp, has announced that the State Bank of India (California) (SBIC) will be using one of its solutions to process standard and standby letters of credit (L/Cs) and documentary collections.

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LGR Crypto Bank mulls automated L/Cs for Silk Road traders

LGR Crypto Bank of Switzerland is mulling new automated letters of credit (L/Cs) that harness digital smart contracts as part of its efforts to provide trade finance services for deals between Silk Road countries and more than 65 other countries.

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AEB and Wärtsilä successfully use aspects of L/C processing to test secure data sharing

Nordic financial services group SEB and Finnish industrial group Wärtsilä have used aspects of letter of credit (L/C) processing to carry out a test of secure data sharing between companies in trade finance operations.

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SIA's digital solution promises easier and faster management of L/C portfolios

Technology infrastructure and services provider for financial institutions, SIA, says it has launched a new platform that allows banks to fully digitise trade finance processes, making it easier and faster for corporates and small- and medium-sized enterprises operating in markets around the world to manage their letter of credit (L/C) portfolios.

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Calls in Bangladesh for local settlement of L/C disputes

Bangladeshi firms should settle international letter of credit (L/C) disputes by using alternative dispute resolution (ADR) methods, especially amid the ongoing coronavirus pandemic, according to the president of the Dhaka Chamber of Commerce and Industry (DCCI).

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Largest US solar developer upsizes L/C capacity

8minute Solar Energy has significantly upsized its letter of credit (L/C) facility to a total of US$350 million with support from new lenders.

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Global Witness says Libya loses millions via fraudulent L/Cs, central bank defends position

A new report published by Global Witness (GW) claims to show that Libya continues to lose millions of dollars a year through the fraudulent use of its letters of credit (LC) system run by the Central Bank of Libya (CBL).

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L/Cs help and hinder Yemen's efforts to import sufficient food

Yemen's food supply chain has continued to function through five years of conflict, partly due to the availability of letters of credit (L/Cs) to import essential foodstuffs.

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Japanese companies announce government-backed L/C pilot project

A group of Japanese companies has announced a collaborative digitalisation pilot project for Vietnam-bound trade with the first set of trial operations focusing on their receipt of letters of credit (L/Cs).

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L/Cs to be invoked as oil and gas companies bankruptcies rise

Letters of credit (L/Cs) to meet decommissioning liabilities are expected to be invoked as more oil and gas companies are at risk of being left to pick up a defunct partners' liabilities.

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Bolero agrees to provide electronic bill of lading for dltledgers' L/C platform

Trade finance digitisation provider Bolero has signed a formal partnership agreement with the dltledgers blockchain platform for trade execution. This opens the way for importers and exporters for the first time to execute physical trades, end-to-end, without sending paper documents.

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ECI helps UAE businesses move beyond L/Cs

The UAE's export credit insurer says it issued 420 million UAE dirham (AED420 million - US$114 million) of trade credit support to small- and medium-sized enterprises (SMEs) in the 11 months to November 2020.

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WeWork alleges L/C threat from landlords

WeWork has filed a complaint alleging one of its landlords violated its lease agreement for a property in New York by threatening to draw down a multi-million dollar letter of credit (L/C).

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Credit Suisse, ING and BNP pull out of L/C provision for crude oil from Ecuador

Three of the six banks named as letter of credit (L/C) or other trade finance providers for major oil deals with the Amazon region have decided to stop financing traders dealing in crude oil from Ecuador.

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Canadian court decision bodes well for commercial landlords and lenders

The Ontario Court of Appeal has overturned a decision of a lower court and found that a letter of credit (L/C) issued by a third-party lender as security for a tenant's obligations under a lease must be honoured in full, even in the event of a tenant becoming bankrupt.

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Online L/C offering helps Djibouti's CAC International Bank win award from The Banker

CAC International Bank has been recognised as the best bank in Djibouti in The Banker publication's Bank of the Year Awards 2020.

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Angola adjusts limits for exchange operations on import L/Cs

Banco Nacional de Angola (BNA - National Bank of Angola) has adjusted the limits for exchange operations on imports of goods on letter of credit (L/C) and advance payment terms.

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Australian insurance regulator releases new guidelines on standby L/Cs

The Australian Prudential Regulation Authority (APRA) has published new guidelines for authorised deposit-taking institutions (ADIs) on the measurement of credit risk weighted assets relating to insurance standby letters of credit (L/Cs).

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Indian investigators raid premises in suspected L/C fraud case

India's Central Bureau of Investigation (CBI) has raided several premises, including those of Delhi-based Jay Polychem India in connection with allegations that they fraudulently obtained letters of credit (L/Cs) to cause losses of a total of the equivalent of around US$270 million to a consortium of 13 banks.

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L/C facility to boost Vesper Energy's solar and energy storage development pipeline

Developer, owner and operator of utility-scale renewable energy assets, Vesper Energy has closed a new letter of credit (L/C) facility with Macquarie Group for up to US$100 million.

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Komgo and Mitech announce collaboration to facilitate L/C transactions and guard against fraud

Commodity trade finance blockchain platform Komgo and specialist trade finance fintech Mitech have announced a collaboration to provide straight through processing of letters of credit (L/Cs) and guarantees.

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OCBC's sustainable finance framework includes green L/C provision

OCBC Bank has developed a framework that makes it simpler and less costly for Singaporean small- and medium-sized enterprises (SMEs) to access sustainable financing of up to 20 million Singaporean dollars (S$20 million - US$15 million) to accelerate their sustainability plans.

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Vietnam's HDBank reports progress on blockchain L/C transactions

HDBank of Vietnam has processed its first blockchain letter of credit (L/C) transactions since joining the Contour blockchain trade finance network last year (DC World News, 19 June 2020).

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Union Bank of Nigeria joins GTFP

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

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US sanctions preventing L/Cs for Iran an act of war says professor

Recent US unilateral financial sanctions imposed on Iran are cutting off Iranian banks from the international banking system, making letters of credit (L/Cs) to import medicine and food into the Islamic republic much more difficult to obtain according to a professor who teaches international business at the George Washington University.

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City Bank issues Bangladesh's first cross-border blockchain Shariah L/C on the Contour network

City Bank has become the first Bangladeshi bank to execute a cross-border letter of credit (L/C) transaction under a Shariah-based financing arrangement executed using blockchain technology on the Contour network.

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UBAF settles for nearly US$8.6 million for "reckless disregard" of Syria sanctions in internal transfers and L/C transactions

Union des Banques Arabes et Francaises (UBAF) of France has reached a settlement with the US treasury department's Office of Foreign Assets Control (OFAC) in which the bank has agreed to remit US$8,572,500 to settle its potential civil liability for 127 apparent violations of Syria-related sanctions.

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Contour partnership with TradeSun will further reduce L/C processing time

Blockchain trade finance network Contour has announced a partnership with TradeSun, a trade finance platform that features artificial intelligence technology that augments human behaviour by learning how employees interact with trade finance documents.

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UK's new National Risk Assessment focuses on TBML challenges

The UK has published its 2020 National Risk Assessment (NRA), the third comprehensive assessment of money laundering and terrorist financing risk in the country.

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ADB to support L/C business under US$500 million Vaccine Import Facility

The Asian Development Bank (ADB) is making available a US$500 million Vaccine Import Facility to support the efforts of its developing members to secure safe and effective vaccines, as well as the goods that support distribution and inoculation.

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ZTE seeks access to L/Cs from US$6.8 billion credit facilities

Executives at Chinese telecommunications giant, ZTE Corporation have approved a plan to seek credit facilities that will improve the Chinese multinational telecommunications equipment and systems company's access to letters of credit (L/Cs).

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ITFC launches new Islamic L/C confirmation offering

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), has launched a new standalone letter of credit (L/C) confirmation instrument as part of its strategy to expand its private sector interventions.

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Pausing L/C payments in response to fraud allegations not straightforward says lawyer

International shipping and commodity law firm Helmsman has held a webinar discussing issues relating to letter of credit (L/C) payments related to sale and purchase (S&P) of commodities, S&P of ships from financially troubled companies facing fraud allegations, and trafficking in spent bills of lading.

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Israel issues guidance for L/C transactions with UAE banks

Israel's supervisor of banks, Yair Avidan, has written a guidance note to the country's banks warning them of the risks associated with conducting letter of credit (L/C) and other transactions with banks in the UAE.

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Door-to-door L/C deliveries help Commercial Bank of Ceylon to trade finance award

Door-to-door deliveries of letters of credit (L/Cs) have helped Commercial Bank of Ceylon win the Best Trade Finance Bank in the Sri Lanka category for the third year in a row at the 2020 Asian Banker Transaction Awards.

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Bangladesh Bank helps exporters away from L/Cs and towards open account terms

Bangladesh Bank is assisting local exporters transact on open account terms as a result of recent policy changes in Bangladesh.

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HSBC goes into production on Contour L/C network

Contour has announced that HSBC has become the first bank to go live on its global trade finance network that provides digitised letters of credit (L/Cs).

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Bank of China sues BP as scale of L/C abuse in Hin Leong collapse emerges

Bank of China is suing BP for allegedly fabricating oil deals with collapsed oil trader Hin Leong which involved the oil major withdrawing a total of US$125.7 million on three letters of credit (L/Cs) in early February 2020 from Bank of China.

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TradeWaltz presses ahead with facility for mixing blockchain L/Cs with old fashioned ones

A consortium of banks, insurance companies, trading conglomerates and shipping and logistics companies are pressing ahead with TradeWaltz, a trade information management system developed by NTT Data, that will offer letters of credit (L/Cs) issued by banks and related documents handled by insurance and logistics companies.

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Container chaos forcing L/C amendments

A severe shortage of shipping containers at major export ports, notably in Asia, is now seriously disrupting global supply chains and forcing traders to ask counterparties to amend the terms of certain letters of credit (L/Cs).

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IDBI Bank first to implement document embedding for L/C and bank guarantee messaging

Industrial Development Bank of India (IDBI) says it has become the first bank to implement a new document embedding facility for letter of credit (L/C) and bank guarantee messages sent over India's Structured Financial Messaging System (SFMS), the secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications.

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Credit Suisse and UBS defend role in L/C provision for Amazon oil trades

Credit Suisse and UBS have defended their roles in the financing of oil pipelines that sustained damage that caused millions of litres of oil to spill into the Amazon river.

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Special L/C rates for contractors in Uganda's dfcu Bank's coronavirus response

Special offers on letters of credit (L/Cs) for contractors feature in dfcu Bank's continued efforts to support businesses amidst the numerous challenges presented by the impacts of the coronavirus pandemic.

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Libya reverses requirements for all imports to be paid for on official L/C terms

Libya's internationally recognised government in Tripoli has quickly overturned a central bank decree requiring that all imports should be paid for on letter of credit (L/C) terms.

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GFI announces cloud-based tool suitable for L/C providers to detect misinvoicing

Global Financial Integrity (GFI), the Washington-based non-profit best known for its work researching and lobbying to prevent illicit financial flows, has developed a cloud-based risk assessment application to detect misinvoicing.

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Standard Bank Malaysia waives L/C fees to help SME recovery

Standard Bank Malaysia has waived fees on letters of credit (L/Cs) as part of its efforts to help small- and medium-sized enterprises (SMEs) weather the impacts of the coronavirus pandemic.

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Entrepreneur's innovative solution for Libya's L/C shortage

An entrepreneur selling a range of goods to Libya has found an innovative solution to overcome the difficulties of obtaining letters of credit (L/Cs) for trades involving the conflict weary North African country.

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UniCredit's L/C and forfaiting combination manages payment risk for lower-rated buyers

UniCredit has used an innovative financing solution combining letters of credit (L/Cs) with forfaiting to provide supply chain finance for a transaction involving a highly-rated supplier and a lower-rated buyer according to the Italian banking and financial services company's director of global transaction banking, Luis Quilico.

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HSBC completes first blockchain L/C in Bangladesh

HSBC Bangladesh has completed the country's first blockchain cross-border trade settled using a letter of credit (L/C).

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Partnership with Mitigram will bolster Bolero's L/C offering

Bolero International, probably the most established of global trade finance digitisation providers, has announced a new partnership with Mitigram, an online global platform for funding and hedging trade risk.

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L/C shortage hampering high risk countries' ability to purchase coronavirus-related material

Importers in countries where there is a high perception of risk have been unable to obtain the letters of credit (L/Cs) they need to buy coronavirus-related material equipment they need according to a counsellor in the World Trade Organisation's (WTO's) Economic Research and Statistics Division.

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African trade finance gap closing, but pool of global correspondent banks shrinking

A new report by the African Development Bank (AfDB) and the African Export-Import Bank (Afreximbank) reveals that between 2015 and 2019 that, on average, letters of credit (L/Cs) and documentary collections were associated with half of African banks' trade finance portfolios.

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Cooperation agreement means CITIC Bank's forfaiting platform will inform China's domestic L/C blockchain solution

China National Clearing Centre (CNCC), a subsidiary of the Chinese central bank, has signed a cooperation agreement for a blockchain forfaiting platform with Bank of China, China CITIC Bank and China Minsheng Bank.

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London lawyers cite standby L/Cs in defence of US Department of Justice proceedings

The US Department of Justice (DOJ) has filed civil forfeiture proceedings over US$330 million held on behalf of a client by a prominent London law firm.

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HSBC first foreign bank to transact on China's trade finance blockchain platform

HSBC has become the first foreign bank to complete a forfaiting interbank transaction featuring a letter of credit (L/C) on the China Trade Finance Inter-bank Trading Blockchain Platform (CTFU).

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ADB participates in first blockchain L/C transaction between Vietnam and Thailand

Standard Chartered has completed its first cross-bank letter of credit (L/C) blockchain transaction between Vietnam and Thailand over the Contour network, the blockchain-based open industry platform focused on digitising trade finance.

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Sberbank says L/C features in first deal with Islamic Development Bank group member

Sberbank has structured a trade finance deal with an Islamic Development Bank (IsDB) group member for the first time. It features an export letter of credit (L/C).

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New Saudi rules restrict money exchange dealers from opening L/Cs

Saudi Arabia has introduced new anti-money laundering and counter financing of terrorism (AML/CFT) rules to limit the activities of money exchange dealers that includes barring them from opening letters of credit (L/Cs).

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Despite coronavirus impacts FATF removes Iceland and Mongolia from grey list, remains committed to AML/CFT brief

Due to the impacts of the coronavirus pandemic, the work of the Financial Action Task Force (FATF) has been significantly disrupted this year, including its work determining 'jurisdictions under increased monitoring', where letters of credit (L/Cs) can be harder to come by.

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Sberbank of Russia and China's Harbin Bank sign L/C agreement

Sberbank of Russia has entered into an agreement to finance letters of credit (L/Cs) with one of China's largest regional banks, Harbin Bank.

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Networks technology company continues using L/Cs to cope with coronavirus conditions and grow business

Narrowband networks technology company CyanConnode is continuing to turn to letters of credit (L/Cs) to grow its business whilst adapting to working under coronavirus crisis conditions.

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ECGE to insure Banque Misr customers against non-payment of L/Cs

Egypt's Banque Misr and the Export Credit Guarantee Company of Egypt (ECGE) have reached an agreement to protect Egyptian exporters.

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DBS and Standard Chartered lead development of pilot for trade transparency in Singapore

Singapore's DBS Bank and the UK's Standard Chartered are leading an industry workgroup including 12 other banks to develop a Trade Finance Registry (TFR) pilot with the aim of enhancing trade transparency in Singapore.

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Digitising L/Cs and guarantees helps Standard Bank win Euromoney award

Standard Bank's work on automating letters of credit (L/Cs) and guarantees has helped it to be named best investment bank in Africa for the second year running in this year's Euromoney Awards for Excellence.

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L/C functionality in Union Systems' first ever multibank international trade finance portal in Nigeria

Union Systems has announced the launch of its Optimus solution, which the company claims is the first multibank international trade finance portal in Nigeria.

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Sberbank introduces entirely online L/C service using escrow account

Russia's Sberbank has announced that individual customers can now open an escrow account and obtain a letter of credit (L/C) via the Sberbank Online mobile app without going to the bank.

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UniCredit sues Hin Leong over L/C for fake oil deal with Glencore

UniCredit SpA has sued Hin Leong Trading Pte Ltd over a letter of credit (L/C) that the collapsed Singapore oil trader obtained ostensibly to purchase oil but instead used to settle debts.

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Contour blockchain trade finance platform goes live

Global trade finance network Contour is entering live production, with a clear focus on digitalising letter of credit (L/C) processing.

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L/C business helps banks win GTR Leaders in Trade awards

Several winners of the recently announced Global Trade Review (GTR) Leaders in Trade awards are credited for their ability to grow or improve their letter of credit (L/C) services.

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Standard Bank becomes first African member of Contour

Standard Bank has become the first bank in Africa to join the Contour blockchain trade finance network as it looks to expand its offering beyond standard letters of credit (L/Cs).

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Central Bank of Iraq requirements for foreign currency deposits against guarantees and L/Cs deterring Lebanese banks

New requirements of the Central Bank of Iraq (CBI) for the proportion of foreign currency deposits allowed against guarantees and letters of credit (L/Cs) is one of several reasons behind the withdrawal of Lebanese banks from Iraq according to assistant general manager for external expansion at Lebanon's Bank of Beirut and Arab Countries (BBAC), Chawki Badr.

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Bolero joins Marco Polo trade finance network

Bolero International, perhaps now the most established of global trade finance digitisation providers, has joined the Marco Polo trade finance network, bringing with it its Galileo letter of credit (L/C) and e-Bill of Lading solutions.

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L/Cs feature in preferential terms offered to purchasers of US defence exports

The US is developing new options for international arms customers to prevent allies and partners from cancelling planned defence procurements programmes as a result of the impact of coronavirus pandemic.

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Contour announces new blockchain L/C deal featuring Guangxi Shenglong Metallurgical

Blockchain trade finance consortium Contour has announced a transaction on its blockchain network between Rio Tinto and Guangxi Shenglong Metallurgical (GMS).

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Standard Chartered and OCBC lose out to Winson in ICC's Hin Leong L/C ruling

The International Chamber of Commerce (ICC) has decided against two banks in letter of credit (L/C) disputes related to the now collapsed Hin Leong Trading and in favour of Singapore based oil Winson Oil Trading according to the Reuters news agency.

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Largest solar developer in the US increases L/C capacity tenfold

8minute Solar Energy says it has closed a US$225 million letter of credit (LC/) facility from a consortium of five banks.

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Pandemic motivates SMBC to accelerate L/C digitisation process with komgo and Contour

Sumitomo Mitsui Financial Group (SMBC) says that it is joining two letter of credit (L/C) focused blockchain trade finance consortia, komgo and Contour.

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Bangladesh railways benefit from L/Cs on preferential terms from India

India has handed over ten broad-gauge diesel-engined locomotives to Bangladesh in support of 17 railway sector projects that are part of a letter of credit (L/C) based assistance scheme extended by India to Bangladesh.

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L/Cs help wireless technology provider revive after coronavirus shocks

Evidence that companies are turning to letters of credit (L/Cs) as they adapt to working under coronavirus crisis conditions has been underlined by UK-based wireless communication technology provider CyanConnode Holdings when it announced its audited results for the 15-month period ended 31 March 2020.

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Trade finance asset distribution could ease L/C difficulties for SMEs in coronavirus crisis

London-based Tradeteq, which claims to be the first electronic trading platform for the institutional trade finance market, says that small- and medium-sized enterprises (SMEs) will find it harder to access letters of credit (L/Cs) in the wake of the coronavirus pandemic.

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US imposes sanctions on Iranian steel, aluminium and iron firms

The US treasury department's Office of Foreign Assets Control (OFAC) has named several Iranian metals companies as Specially Designated Nationals (SDNs).

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Indonesian police allege long term fugitive used fictitious L/C to obtain bank loans

Indonesian police have brought multiple charges against captured fugitive Maria Pauline Lumowa, who allegedly used a fictitious letter of credit (L/C) to obtain bank loans.

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Lebanese L/C openings plummet as buyers increasingly struggle to finance imports

Lebanon's central bank has said that letter of credit (L/C) openings have declined by more than 90 per cent as the country struggles with a failing economy, a hard currency shortage, the impacts of the coronavirus pandemic and the devasting 4 August explosion at Beirut port.

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Co-operative Bank of Kenya launches import duty finance product to enhance L/C offering

The Co-operative Bank of Kenya (CBK) is offering a new Import Duty Finance product to add to the range of services already offered by the bank, including letters of credit (L/Cs).

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Misuse of supply chain finance worrying but not widespread, says Global Supply Chain Finance Forum (GSCFF)

New report from the industry coalition GSCFF addresses head-on the criticisms relating to impact on suppliers, financial reporting and potential credit and liquidity risks

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Russia's CBM establishes renminbi denominated L/C facility for clothing retailer

Credit Bank of Moscow (CBM) has signed a multicurrency loan agreement with one of Russia's largest clothing retailers, O'stin, and announced that it can now open renminbi denominated letters of credit (L/Cs) for its purchases from Chinese suppliers.

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Blockchain will hamper L/C fraud says MUFG Bank

Japan's MUFG Bank has completed its first complete transaction using Trakk, a blockchain system that builds document audit trails to guard against fraud and falsification.

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Blockchain's capacity to speed up L/C processing

The chief executive officer (CEO) of Contour, the blockchain based open trade finance network formerly known as Voltron, has shared his views with the Reuters news agency on a blockchain transaction executed earlier this year between global miner Rio Tinto and China's Nanjing Iron & Steel.

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Coronavirus exacerbating global trade finance gap says World Economic Forum

The issuance of letters of credit (L/Cs) and other trade finance instruments is becoming more difficult as a result of the coronavirus pandemic according to the World Economic Forum (WEF).

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DNB one of many banks ready for delayed SWIFT standby L/C and guarantee processing

Norway's largest bank, DNB, is ready to switch to new online versions of both its front and back-end solutions that are already compliant with rigorous changes to SWIFT messaging protocols that do not now come into force until November 2021 according to the bank's technology provider, Surecomp.

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Fintech TheGuarantor offers L/C alternative to commercial landlords and tenants

A security deposit alternative to letters of credit (L/Cs) put up by tenants to guarantee payment of rent to commercial landlords is on offer from fintech company, TheGuarantors.

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Guarantees and L/Cs for Libya help ATB's latest Fitch rating

Sustained letter of credit (L/C) business with Libya is one reason given by Fitch Ratings why it has affirmed Arap Turk Bankasi's (ATB's) long-term local and foreign currency issuer default ratings at 'B+' with a negative outlook.

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Guarantees and L/Cs for Libya help ATB's latest Fitch rating

Sustained letter of credit (L/C) business with Libya is one reason given by Fitch Ratings why it has affirmed Arap Turk Bankasi's (ATB's) long-term local and foreign currency issuer default ratings at 'B+' with a negative outlook.

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Cameco asks for return of L/C after Canada tax appeal ruling

One of the world's largest publicly traded uranium companies, Cameco is asking the Canadian government to return the letter of credit (L/C) the miner submitted to guarantee payment to the Canada Revenue Agency (CRA) if it were proved that it had paid insufficient taxes.

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SocGen and BNP Paribas put the brakes on commodity trade finance deals

Société Générale is closing its Singapore trade commodity finance unit after the collapse of oil trader Hin Leong Trading prompted the bank to call a halt on fresh funding for commodity deals in the region.

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DBS Bank joins R3's Corda blockchain trade-finance network Contour

Singapore's DBS Bank has joined Contour's open trade network, which is built on blockchain technology company R3's Corda platform.

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Lawyer suggests L/C safety net for US commercial landlords

Commercial landlords in the US may be more inclined to look to letters of credit (L/Cs) to protect themselves from unexpected bankruptcies precipitated by the economic fallout of the coronavirus pandemic according a partner in the Orlando office of law firm Shutts & Bowen.

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L/Cs a key element in Hertz agreement with investors

Interest payments on Hertz Vehicle Financing II asset-backed securities (ABS) funded by draws on existing letters of credit (L/Cs) are a key element in the troubled vehicle rental giant's interim settlement and agreement with investors holding those securities.

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Philippines mulling virtual banks for L/C issuance

Legislators in the Philippines are considering the introduction of a regulatory framework for virtual banks that would enable them to issue some letters of credit (L/Cs).

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Philippines mulling virtual banks for L/C issuance

Legislators in the Philippines are considering the introduction of a regulatory framework for virtual banks that would enable them to issue some letters of credit (L/Cs).

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Court denies relief for L/Cs impacted by loss of business due to coronavirus crisis

An Indian court has denied relief to a jewellery exporter that asked its bank to stop payments on letters of credit (L/Cs) after its cash flow dried up as a result of business disruption caused by the coronavirus pandemic.

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Expect more L/C requests says Atradius

Payment delays in Asia have increased and as the region learns to cope with business disruptions caused by the coronavirus pandemic, in some countries volumes of letter of credit (L/C) business look likely to increase according to new economic research by trade credit insurer Atradius.

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Digital priorities revealed in latest ICC Global Survey on Trade Finance

Digital trade is a key priority for banks in the International Chamber of Commerce's (ICC) 11th annual Global Survey on Trade Finance.

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India plans for digital L/Cs in efforts to ease coronavirus impacts on ports

The Indian government is looking to digitalise letters of credit (L/Cs) and other trade documentation as part of its electronic Port Community System (PCS).

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Singapore BP staff associated with L/C dispute placed on leave

Several BP trading staff in Singapore have been placed on leave because their names have appeared in court documents filed by banks in their dispute with several commodity traders Bloomberg has reported.

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Payment practices deteriorating in Asia despite L/C and bank guarantee usage says Atradius

The coronavirus pandemic coupled with an increasingly bitter US-China trade war have precipitated a deterioration in payment practices across Asia according to a survey by Atradius.

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Four charged with bribery facilitated HK$75 million L/C fraud and money laundering

A senior executive of a listed company subsidiary and two directors of two construction companies are amongst four people charged by Hong Kong's Independent Commission Against Corruption (ICAC) for their alleged roles in a 75.3 million Hong Kong dollars (HK$75.3 million - US$9.7 million) letter of credit (L/C) fraud involving over HK$1.7 million in bribes and money laundering.

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APIsure to help with digital L/C and bank guarantee processing

Surecomp has announced the opening of its Application Programming Interfaces (API) architecture to customers in a test environment.

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RBI fines Citibank for failing to obtain customer declarations before providing non-fund based facilities

The Reserve Bank of India (RBI) has imposed a 40 million Indian rupee (US$530,000) fine on Citibank for failing to comply with banking regulations and non-compliance with the central bank's directions.

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UPS Capital mulls alternative to L/Cs for SMEs

UPS Capital is looking to develop trade finance offerings that may provide alternatives to letters of credit (L/Cs) and may be particularly appropriate for small- and medium-sized enterprises (SMEs).

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Liberian court judgment may - or may not - end DTL's dispute with GT Bank

Liberia's supreme court has ordered a lower court to enforce its 2019 judgment against the Guaranty Trust Bank (GT Bank) to issue Doramart Trade Limited (DTL) a letter of credit (L/C).

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New L/C arrangements in Delta Air Line's amended revolving credit facility

Delta Air Lines has amended its US$2.65 billion credit facility agreement so that it now features a new standby letter of credit (L/C) facility.

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Interpol posts new red corner notice in US$2 billion L/C and letter of undertaking scam

Interpol has once more posted a red corner notice against fugitive celebrity jeweller Nirav Modi's stepbrother on its web site after taking it down last year when Nehal Deepak Modi launched an appeal against the notice.

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German businesses can obtain L/Cs for trade with Iran from banks claims UANI

Smaller German businesses can still obtain letters of credit (L/Cs) to do business with Iran from banks in Germany, despite US sanctions that have made L/Cs hard to obtain from banks across the world according to a report published last week by United Against Nuclear Iran (UANI).

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Fitch assigns 'A' rating to L/C enhanced bond

Fitch Ratings has assigned China's Neijiang Investment Holding Group's proposed US dollar credit-enhanced bonds an A rating.

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Traydstream partners with Infosys Finacle to drive blockchain based L/C automation.

Traydstream, a fintech company specialising in trade document scrutiny using artificial intelligence (AI), has announced the signing of a joint partnership agreement with a subsidiary of information technology major Infosys.

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L/Cs included in new Texan challenger bank offering

Gulf Capital Bank (GCB), the first new bank to open in Houston in the US state of Texas in over a decade, is including letters of credit (L/Cs) in its service offering.

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Pandemic has greatly affected growing global L/C confirmation industry

The coronavirus pandemic has greatly affected the global letter of credit (L/C) confirmation industry according to a report published by Allied Market Research.

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Bahrain's Bank ABC deploys Finastra platform to meet increased L/C demand

Bahrain-based Bank ABC has deployed the Fusion Trade Innovation platform to standardise its core wholesale banking systems and processes and meet a dramatic increase in demand for export letters of credit (L/Cs) according to Finastra, the fintech software vendor that developed the platform.

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Vietnam's HDBank joins Contour to improve L/C

HDBank of Vietnam has joined the Contour blockchain letter of credit (L/C) platform to increase its ability to extend trade financing to more corporates.

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Contour and Chinsay blockchain partnership to improve L/C communications

Contour, the blockchain-based open industry platform formerly known as Voltron, has announced a partnership with Chinsay, a technology company specialising in supply chain data capture and risk management.

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L/C fraudster tops list of India's wilful defaulters

Gitanjali Gems, the company owned by Mehul Choksi, who, along with his nephew celebrity jeweller Nirav Modi, engineered a massive bank fraud in the Indian diamond sector, tops the list of "wilful defaulters" released by the Reserve Bank of India (RBI).

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Afreximbank brings Zimbwabe's banks together to create model L/C

The African Export-Import Bank (Afreximbank) is providing training to bankers to help enhance their technical skills in letters of credit (L/Cs) and other aspects of trade finance.

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Winson demands US$21.5 million for dishonoured L/C in trade with Hin Leong

Singapore based Winson Group is demanding 30.4 million Singaporean dollars (SG$30.4 million - US$21.5 million) from Oversea-Chinese Banking Corporation (OCBC) for dishonouring a letter of credit (L/C) the bank issued in respect of a trade with Hin Leong Trading.

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Contour partners with TradeCloud to expand digital L/C offering

Contour, the blockchain based open trade finance network formerly known as Voltron, has announced a partnership with TradeCloud, a digital portal for producers, consumers and traders.

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ICC says up to US$1.9 trillion needed to support post-pandemic trade credit, including L/Cs and guarantees

The International Chamber of Commerce (ICC) has said a large proportion of a possible US$5 trillion of trade credit that will be needed to enable a rapid recovery from the coronavirus crisis will be needed to provide capacity in the bank-intermediated market, including letters of credit (L/Cs) and bank guarantees.

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Counting the costs and assessing the implications for L/Cs after commodity trader mega-failures

Banks are beginning to count the cost of mega-failures amongst commodity traders, notably in Singapore and Dubai, whose less than rigorous trading practices and in some cases suspected fraud have been exposed by the impacts of the coronavirus pandemic.

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Angola issues clarification on L/C settlements

Banco Nacional de Angola (BNA - National Bank of Angola) has issued a clarification on the Angolan settlement of letters of credit (L/Cs) in favour of the exporter.

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SEC says L/C trigger for bribery payment featured in ex-Goldman Sacks executive's web of corruption

A former managing director of Ghana's Tema Oil Refinery (TOR), Asante Berko, has been charged under the US' Foreign Corrupt Practices Act (FCPA).

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SWIFT delays big changes to standby L/C and guarantee messaging

Due to the impacts of the coronavirus pandemic, electronic messaging platform SWIFT has delayed their ISO 20022 migration date for cross-border payments from November 2021 to the end of 2022.

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DLPC CorDapp to promote interoperability of blockchain underpinning digital L/C processing

Blockchain company Skuchain has released the DLPC CorDapp, a component of its Inventory Control & Finance (ICF) product, with the aim of promoting interoperability between trade finance blockchain applications.

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Coronavirus pushes EBRD's financing through TFP to over EUR 500 million a month for the first time

The European Bank for Reconstruction and Development (EBRD) says that financing under its letter of credit (L/C) oriented Trade Facilitation Programme (TFP) last month topped EUR 500 million (US$546 million) for the first time.

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Hertz seeks alteration of L/C terms to cope with coronavirus impacts

Hertz, the US-based car rental group, is seeking to alter terms of letters of credit (L/Cs) it uses in the course of its business as part of a fundamental restructuring of its finances.

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Contour announces first yuan-denominated blockchain L/C deal

Open trade finance network Contour has announced the completion of the first yuan-denominated blockchain letter of credit (L/C) deal between Baosteel and Rio Tinto.

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L/Cs substantially help Al Baraka Bank of Algeria to boost profits by 23 per cent

Al Baraka Bank Algeria (ABBA), one of the banking units of Bahrain-based Al Baraka Banking Group BSC (ABG), has achieved a significant growth in its net income of 23 per cent during the year 2019 compared to 2018.

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Latest ICC Trade Register 2019 Report is now available

What is the ICC Trade Register?The ICC Trade Register is an unparalleled instrument to measure global risk in trade and export finance facilitated by the International Chamber of Commerce (ICC) and the world's leading banks.

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Third year of lower default rates for L/Cs says 2019 ICC Trade Register Report

The International Chamber of Commerce (ICC) has released its 2019 Trade Register Report, revealing that default rates for letters of credit (L/Cs) are a little lower than those recorded in the 2018 report.

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US extends L/C support for agricultural exports

The US Department of Agriculture (USDA) is extending its support for the country's food producers by providing coverage for exports under sight letters of credit (L/Cs) without refinancing under the Commodity Credit Corporation's Export Credit Guarantee Programme (GSM-102).

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Giant Indian urea buyer says it may not be able to open L/Cs

Metals and Minerals Trading Corporation of India (MMTC) has said that it may not be able to obtain letters of credit (L/Cs) for purchases of urea from sellers.

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Indian court injunction on grounds force majeure caused by pandemic may be precedent for L/C guarantees

A court in Delhi has granted Halliburton Offshore Services of the US an interim injunction preventing the originally Indian natural resource giant Vedanta from invoking or encashing a bank guarantee on the grounds of force majeure created by the coronavirus lockdown.

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Singapore's largest bank's L/C exposure to troubled oil markets

Singapore's largest bank, DBS, has said that its oil and gas loans, which include a substantial number of letter of credit (L/C) backed loans, is the most exposed portion of its portfolio of loans to industries suffering severe difficulties as a result of the negative impacts of the coronavirus pandemic.

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L/C-focused Komgo looks to broaden its offerings as Citi increases its investment

Global banking giant Citi has increased its equity stake in Komgo, the trade finance platform that is currently focused on letters of credit (L/Cs), account receivables financing, and know-your-customer (KYC) processing.

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Lawyers advise on L/C issues for lessors in the transport leasing sector

Lawyers at the Asset Finance Group at Allen & Overy LLP have outlined some of the issues arising from the coronavirus pandemic that lessors with the benefit of security for unpaid rent or maintenance reserves in the form of a letter of credit (L/Cs) may face.

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How banks are going digital to manage covid-19

A collection of rapid response measures by trade finance banks to keep trade finance and trade flowing in the face of Covid-19.

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M&S offers suppliers L/C terms and vendor finance to minimise supply chain disruption

One of the UK's largest retailers, Marks and Spencer (M&S), is offering its garment suppliers letter of credit (L/C) terms and vendor financing in its efforts to minimise supply chain disruption caused by the coronavirus pandemic.

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L/Cs can now be frozen under Egypt's amended terrorism financing law

Letters of credit (L/Cs) used by individuals and entities in Egypt affiliated with terrorist groups can now be frozen after the Council of Ministers approved draft amendments to legislation on terrorist financing.

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Indian railway on a mission to convert SMEs to L/C terms

India's North Central Railway (NCR) has held a vendor meeting at its headquarters in Allahabad, a city in the state of Uttar Pradesh, to persuade its suppliers to use domestic letters of credit (L/Cs) when doing business with the railway company.

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More L/Cs expected post-lockdown to meet Indian demand for Chinese solar equipment

China-based manufacturers of photovoltaic solar (PV solar) equipment are increasingly moving to letter of credit (L/C) terms for sales of goods to India.

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RBZ's L/C support for grain insufficient to avert shortages

The Reserve Bank of Zimbabwe's (RBZ) promise of letters of credit (L/Cs) worth US$10 million to import grain from various African countries appears not to have helped sufficiently with the government's efforts to provide hard currency to avert severe grain shortages.

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ABN Amro files applications against Hin Leong for L/C related charges

ABN Amro Bank has lodged a claim against Hin Leong Trading, the Singaporean oil trading giant that has appointed advisors and filed for protection from creditors.

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L/Cs feature in Bank of Maldive's working capital facility

Letters of credit (L/Cs) feature in Bank of Maldives' (BML's) new unsecured Working Capital Finance (WCF) facility.

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Singapore's DBS Bank claims 'industry first' L/C financing on CamelONE's TFP

Singapore's DBS Bank claims it has closed another 'industry-first' with the completion of the first trade financing settlement through CamelONE's Trade Finance portal (TFP).

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Indian court rejects coronavirus impacts as force majeure on L/C obligations

Indian steel importers cannot declare force majeure based on the impacts of the coronavirus pandemic to block letters of credit (L/Cs) with South Korean suppliers, the Mumbai High Court has ruled.

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Advisors appointed after banks refuse new L/Cs for giant Singapore oil trader

Singaporean oil trader Hin Leong Trading has appointed advisors after suffering severe liquidity issues.

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EIB fund signs new pilot guarantee instrument with three banks in Bulgaria

A fund operated by the European Investment Bank (EIB) has signed three new guarantee agreements with Unicredit Bulbank, United Bulgarian Bank and ProCredit Bank (Bulgaria) to support fast-growing documentary finance activity in Bulgaria.

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S&P warns US municipalities not to forgo benefits of L/C backed issues

Municipalities in the US that issue letter of credit (L/C) backed variable-rate demand obligations (VRDOs) may lose the benefits provided by the L/C if they buy their own bonds according to S&P Global Ratings.

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Petsec challenges 'illegitimate' claim on Yemen L/C

Petsec Energy is disputing a claim against a US$4.2 million letter of credit (L/C) guaranteeing that the Australia-listed oil and gas explorer would meet its exploration obligations in Block 7 in Yemen.

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Egypt mulls 'at sight' L/Cs to allay fears of wheat shortages in coronavirus crisis

Egypt's General Authority for Supply Commodities (GASC) is considering paying for wheat at its next tender with 'at sight' letters of credit (L/Cs).

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Citi joins Contour trade finance network to develop digital L/Cs

Citi has joined the Contour trade finance network, increasing the number of banks that have invested in the network formerly known as Voltron as part of an industry-wide global collaboration effort.

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Government approval for state-owned banks to provide L/C guarantees for Sri Lankan Airlines

The government of Sri Lanka has approved a proposal for state-owned commercial banks, Bank of Ceylon and the People's Bank, to provide guarantees for letters of credit (L/Cs) required by Sri Lankan Airlines.

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Impacts of coronavirus on the L/C market

As coronavirus spreads across the world some of the impacts of the pandemic on letter of credit (L/C) business are emerging.

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EximBank India gets additional funds to provide L/Cs for export sales

Export-Import Bank of India (EximBank India) has received the equivalent of around US$195 million of additional state funding to help support Indian exports.

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Coronavirus and oil prices in freefall force Apache to post L/Cs to guarantee North Sea obligations

Apache Corporation has said it will post letters of credit (L/Cs) aggregating approximately US$650 million to guarantee it meets its asset retirement obligations in the UK's North Sea oil fields.

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Blockchain platform to improve access to L/Cs

A new blockchain platform for participants in the supply chain may provide traders with improved access to letters of credit (L/Cs) according to the developers, Distributed Ledger Technologies (DLT).

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Revise L/C requirements US broadband providers tell regulator

Seven associations representing US broadband providers have sent a letter to the Federal Communications Commission (FCC) urging it to revise the letter of credit (L/C) requirements proposed for the Rural Digital Opportunity Fund (RDOF).

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Sri Lanka limits L/C imports to prevent financial market panic due to coronavirus pandemic

The Central Bank of Sri Lanka (CBS) has introduced measures it says will ease the pressure on the exchange rate and prevent financial market panic due to the coronavirus pandemic.

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DBS completes first L/C financing on Singapore's NTP

Singapore's DBS Bank, in collaboration with Audi Singapore and Audi's local distributor, Premium Automobiles, have completed the first trade financing transaction on Singapore's Networked Trade Platform (NTP).

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Nigeria acts on L/Cs affected by coronavirus crisis, Indian bankers call for action

The Central Bank of Nigeria (CBN) has said it will guarantee letters of credit (L/Cs) from Nigerian banks during the coronavirus pandemic and has asked correspondent banks and creditors to Nigerian lenders not to panic over L/Cs and other obligations extended to Nigerian businesses.

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Nigeria commits further US$2.6 million for L/Cs in Chinese currency

The Central Bank of Nigeria (CBN) has committed a further 18 million yuan (US$2.6 million for renminbi-denominated letters of credit.

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Premier Oil locks horns with investor over L/C obligations

Premier Oil is locked in battle with its largest creditor, Asia Research and Capital Management (ARCM) over the London-listed oil company's plans to acquire further assets in the ageing UK North Sea and extend debt maturity.

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Clues indicate impact on L/Cs of coronavirus pandemic

The impact of the coronavirus pandemic on letter of credit (L/C) business is difficult to predict for several reasons. It is unclear how supply chains that L/Cs so often finance will be affected while trade finance flows are both inherently complex and extremely difficult to track and see on a global scale.

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More than US$1 billion of L/Cs in suspicious Lebanese transfers

Around US$1.3 billion of letters of credit (L/Cs) appear to have been used in suspicious hard currency transfers from accounts in Lebanon to several banks in Switzerland according to officials investigating reports that Lebanese politicians transferred billions of US dollars to foreign banks in 2019.

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Coronavirus outbreak impacts on L/C users

As the coronavirus outbreak continues to shake the global economy, concerns are growing amongst letter of credit (L/C) users as to how to cope with potential difficulties that may lie ahead.

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Blockchain L/Cs have facilitated trades during coronavirus disruptions

Blockchain enabled letters of credit (L/Cs) have helped sustain trading despite disruptions caused by the coronavirus outbreak a senior banking official has told the South China Morning Post.

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L/Cs and trade finance behind Stanbic Zambia's record earnings

Stanbic Bank Zambia, which claims to be the country's largest letter of credit (L/C) and guarantee provider, has recorded a profit after tax of 450 million Zambian Kwacha (K450 million - US$30.8 million).

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L/C support for troubled US boilermaker

Troubled US industrial boilermaker, Babcock & Wilcox Enterprises (B&W), has announced a refinancing package that includes improved letter of credit (L/C) availability.

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Bangladesh garment manufacturers seek L/C amendments to soften coronavirus impact

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked Bangladesh Bank (BB) for back-to-back letter of credit (L/C) procedures to be amended to help textile firms cope with the adverse impact of the coronavirus outbreak on their businesses.

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US coal miner pursuing blockchain innovation with Amazon for L/C transactions

Coal miner Contura Energy says it is pursuing blockchain-based innovation in partnership with an Amazon subsidiary to transform the way letters of credit (L/Cs) work for the company.

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Chinese steelmaker secures yuan denominated L/Cs for iron ore purchase

China's second largest steelmaker says it has secured two letters of credit (L/Cs) to purchase iron ore from Brazil's Vale in a 200 million yuan contract denominated in the Chinese currency.

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UK aid joins L/C interventions to help close Africa's trade finance gap

CDC Group, the UK's development finance institution (DFI), is expanding its trade finance offerings in Africa to help close the continent's trade finance gap.

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Partnership of ECI and HSBC includes focus on L/Cs for UAE exporters

Etihad Credit Insurance (ECI) has signed a memorandum of understanding (MoU) with HSBC to provide letters of credit (L/Cs) amongst a range of trade export finance and insurance solutions to give the country's exporters a platform for sustainable growth and development over the long term.

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Bolero launches Galileo platform with new L/C management features

Bolero International, perhaps now the most established of global trade finance digitisation providers, has launched its new Galileo platform.

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Doldrums in US shale gas market may lead to US$1.6 billion L/C posting

Shale gas giant EQT has warned that it may have to post US$1.6 billion in letters of credit (L/Cs) in the wake of its downgrade of debt to junk bond status.

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Contract fraud suspect who cashed L/C repatriated to China from Australia

A Chinese national who allegedly cashed in a letter of credit (L/C) but failed to meet his contractual obligations associated with it has been repatriated to China from Australia according to China's ministry of public security.

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L/C requirement stems failure of Indian power distribution companies to pay bills

An Indian government requirement that power distribution companies must put up letters of credit (L/Cs) to ensure that they pay power generators appears to be paying off.

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MUFG completes blockchain L/C transaction on komgo

Japan's MUFG Bank has completed its first live blockchain letter of credit (L/C) transaction on the komgo commodity trade finance platform.

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Tata Steel exempted from appearing in L/C fraud case

An Indian court has granted Tata Steel an exemption from appearing before a court in a case against the former promoters of Bhushan Steel, which was acquired last year by a Tata group firm.

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China's coronavirus lockdown prompts L/C concerns

China's coronavirus outbreak and lockdowns across the country have led to the prolonged closure of Chinese businesses, triggering concerns amongst banks and traders that letter of credit (L/C) obligations may not be met.

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Cancelled Europe-Asia sailings may make L/C obligations hard to meet

2M Alliance, the 10-year vessel-sharing partnership of shipping giants Maersk and MSC, has advised their North European customers that they have cancelled several Asia sailings in March. CMA CGM has also notified customers of void sailings.

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Fraudsters sentenced for wire fraud with fake L/Cs

A woman and two men have been sentenced in the US state of California to a 15 month jail term for their roles in a scheme that used fake letters of credit (L/Cs) to commit wire fraud.

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Pakistan eases L/C restrictions

State Bank of Pakistan (SBP) has allowed the country's banks to make advance payment of up to 50 per cent of the value of imports against letters of credit (L/Cs) for plant, machinery, spare parts and raw materials.

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Contour, formerly Voltron, goes commercial

The blockchain-based open industry platform formerly known as Voltron has been renamed Contour and has declared itself a fully commercial company based in Singapore.

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More L/Cs required if the UK leaves the EU with no deal

A British business leader believes that UK businesses will need to use more letters of credit (L/Cs) if the country leaves the European Union (EU) in December without a trade deal.

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India's state-run coal supplier extends L/C facility to smaller users

Coal India Limited (CIL) has relaxed its payment terms for supplying fuel to its smaller customers by making a letter of credit (L/C) facility available to them.

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China's central bank mulling digital L/C options

People's Bank of China (PBC) is reportedly considering trials of blockchain letter of credit (L/C) transactions.

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L/Cs and fair tariffs needed to back Indian wind power

Wind power producers in India want to see distribution companies forced to put up letters of credit (L/Cs) to guarantee that electricity generators are paid in full and on time for the power they produce.

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Bangkok Bank ready to roll out blockchain L/C offering

Bangkok Bank, the only Thai bank involved in the development of R3's Corda-powered Voltron platform to digitise letters of credit (L/Cs), is poised to offer its customers digital trade finance solutions.

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Nigeria injects 17.9 million yuan to support L/C business with China

Central Bank of Nigeria (CBN) has injected 17.9 million Chinese yuan (US$2.5 million) into the currency market to support letter of credit (L/C) business with China and reinforce the bank's efforts to keep the naira stable and prevent currency shortages.

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Nigeria's Keystone Bank to pay damages for failing L/C obligations

Nigeria's Keystone Bank has been ordered by a Nigerian court to pay China's Hexing Electrical damages of US$778,118 over a breach of contract.

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Angola's L/C requirements dent profits at African packaging giant

Angola's new letter of credit (L/C) requirements are a contributory factor in Africa's largest diversified packaging manufacturer suffering a full year loss.

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US Treasury looks to blockchain to improve L/C management

The US treasury department's Office of Financial Innovation and Transformation (OFIT) has announced a blockchain or distributed ledger technology (DLT) letter of credit (L/C) pilot proof of concept project.

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AfDB and ABSA agree facility to improve access to L/Cs

The African Development Bank (AfDB) has signed an unfunded US$250 million Risk Participation Agreement (RPA) facility with ABSA that should improve access to letters of credit (L/Cs) for companies in key strategic sectors.

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Emirates NBD's smartTRADE portal offers enhanced L/C offering

Dubai's largest bank, Emirates NBD, has launched a comprehensive suite of products and advisory services to support working capital requirements.

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HSBC reports blockchain L/C deals in the Gulf

HSBC says it has fully executed two blockchain letter of credit (L/C) transactions in the Gulf.

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Thai government to introduce blockchain L/C payment system

The Thai government is to introduce a scheme for letters of credit (L/Cs) issued by the state to be processed on a blockchain platform.

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Assets seized from alleged L/C fraudsters

Assets worth the equivalent of around US$7.8 million have been seized from a company based in the Indian state of Rajasthan under anti-money laundering law in an alleged bank loan fraud case that involved fake letters of credit (L/Cs), India's Enforcement Directorate (ED) has said.

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Blockchain L/C development key plank in Reliance Industries' strategy

Indian multinational conglomerate Reliance Industries has included the development of blockchain letters of credit (L/Cs) in its strategic plans.

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Chinese banks expanding blockchain trade finance offerings

Two of China's four major state-owned banks are expanding their separate trade finance blockchains internationally.

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L/Cs feature in trade finance funds that could help close the trade finance gap

Letters of credit (L/Cs) feature in the growing number of trade finance funds that are emerging to meet demand from institutional investors seeking attractive returns with low correlation to stocks or bonds.

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Lebanese government seeks new fuel importers as L/C shortage bites

The Lebanese government has invited new companies to tender for fuel imports after the companies currently prequalified to tender claimed they had not been able to obtain the letters of credit (L/Cs) they needed to pay for fuel.

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Egyptian banks start yuan-denominated business

Egypt's major commercial banks are now able to offer a range of Chinese currency transactions according the Economic and Commercial Counsellor's Office of the Chinese Embassy in Egypt.

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L/Cs may be insufficient for Asian oil and gas plant decommissioning costs

South East Asia has been producing five per cent of the world's oil and gas over recent years, with Myanmar, Thailand, Vietnam, Brunei, Malaysia and Indonesia in the forefront.

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BBVA includes L/Cs in expanded sustainable product range

Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) has included letters of credit (L/Cs) in its newly expanded environmentally friendly framework for sustainable transactional products.

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Lebanese potato farmers call for euro denominated L/Cs

Lebanese farmers are continuing to call for the Central Bank of Lebanon (CBL) to allow them to use euro denominated letters of credit (L/Cs) at a regular market rate to import potato seeds.

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L/C support features in McDermott's financial rescue

Troubled oilfield services firm McDermott International says it has entered into an agreement with certain of its secured lenders under which the company will have access to up to US$1.7 billion of additional financing, including letter of credit (L/C) capacity.

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L/Cs feature in VTB Bank's agreement with Afreximbank to boost Russia-Africa trade and investment

VTB Bank (Europe) has signed an agreement to participate in the African Export-Import Bank's (Afreximbank's) Trade Confirmation Guarantee Programme (TCGP).

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Nigerian airline boss fraudulently obtained L/Cs in bank fraud

The founder and chief executive officer of Nigerian airline Air Peace, Allen Onyema, has been charged in the US with money laundering and bank fraud.

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HSBC issues first Malaysian L/C on live blockchain

HSBC has completed what it claims to be the first letter of credit (L/C) pilot transaction on a live blockchain in Malaysia.

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Digital L/Cs feature in new mining technology platform

MineHub Technologies has completed development of its technology platform designed to improve efficiency in trading operations as well as environmental and social governance compliance in mining and metals supply chains.

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Michigan fraudsters used L/Cs in US$1.2 million fraud

Samuel Abraham, a resident of the US state of Michigan, has been sentenced to 10 years in prison for his roles in running an advanced fee scheme involving fake standby letters of credit (L/Cs).

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CCB launches new blockchain platform for L/Cs, factoring and forfaiting

China Construction Bank (CCB), the first in China to use blockchain for domestic letters of credit (L/Cs), has released the second version of its blockchain platform for trade finance.

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L/Cs play a part in collapse of China's largest rubber trader

Letters of credit (L/Cs) played an integral role in the financing strategy that appears to have caused the collapse of China's largest rubber trader.

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Nigerian milk importers must buy on L/C terms

Bankers in Nigeria say that the country's milk importers will have to open letters of credit (L/Cs) after the central bank ordered lenders to stop processing milk imports on a credit basis.

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Lebanon's central bank steps in to support essential imports on L/C terms

Lebanon's central bank is to facilitate access to US dollars for banks that issue letters of credit (L/Cs) for importers of essential products in response to serious concerns of a US dollar shortage and possible currency devaluation.

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Stanbic Bank Uganda agrees to implement Traydstream's L/C vetting platform

Stanbic Bank Uganda (SBU) is to implement Traydstream's platform that uses machine-learning and artificial intelligence (AI) with natural language processing to create intelligent pattern recognition that enables speedy verification of regulatory compliance.

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ITFA launches new MRPA guidelines, L/Cs included

The International Trade and Forfaiting Association (ITFA) has launched its new Unfunded Master Risk Participation Agreement (MRPA) and associated user guidelines, including for letters of credit (L/Cs) for use by its members.

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Ralph Lauren announces US$500 million facility to support L/C issuance

Ralph Lauren Corporation and some of its foreign subsidiaries have entered into a definitive agreement for a major revolving credit facility under which the global fashion house can issue letters of credit (L/Cs).

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Rio Tinto and Cargill report first paperless iron ore L/C transaction

Mining giant Rio Tinto and trader Cargill, supported by HSBC Singapore and BNP Paribas, have successfully completed the first fully integrated paperless letter of credit (L/C) transaction in iron ore.

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SoftBank looks to US$2 billion L/C facility in WeWork acquisition

Japanese conglomerate SoftBank is reportedly negotiating a US$2 billion letter of credit (L/C) facility to part-finance its acquisition of troubled shared workspace provider, WeWork.

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Construction company and Canadian power generator in L/C dispute

The Canadian subsidiary of Italian multinational major construction company, Astaldi, is asking a judge to throw out an order for C$437,000 (US$332,000) in legal fees to the Muskrat Falls Corporation, a subsidiary of provincial energy utility Nalcor.

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Courts to decide on collapsed Australian engineering firm's L/C obligations

Complications surrounding letters of credit (L/Cs) and bank guarantees will feature in court hearings in Australia to determine the extent to which non-secured creditors will be paid out of the proceeds of liquidated assets of collapsed engineering group RCR Tomlinson.

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Libyan fuel companies prefer profits from imports on L/C terms to domestic supplies

Libya's interior minister, Fathi Bashagha, is calling on the country's internationally recognised prime minister, Faiez Serraj, to end the virtual fuel monopoly held by Libya's four main petrol station operators.

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Standby L/Cs part of US$2.1 million based investment fraud involving former FBI agent

The US Securities and Exchange Commission (SEC) says an ex-Federal Bureau of Investigation (FBI) agent helped a businessman perpetrate a US$2.1 million fraudulent prime bank investment scheme in which investors' funds were supposedly backed by bank guarantees and standby letters of credit (L/Cs).

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ADCB says it is first UAE bank to complete end-to-end blockchain L/C transaction

The UAE's Abu Dhabi Commercial Bank (ADCB) says it has completed the country's first live blockchain end-to-end transaction in a digital process that mirrors traditional paper-based letter of credit (L/C) processing.

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Sberbank enhances online L/C facility

State-owned Sberbank of Russia has introduced a new feature on its remote banking service.

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Coal companies concerned about L/C availability

Coal companies are concerned that backing from insurance companies and letters of credit (L/Cs) required for operations in many jurisdictions will become increasingly hard to come by as environmental activists increase their efforts to deter financiers from backing the coal industry.

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L/Cs feature in Japanese banking partnerships in Africa

Some of Japan's leading banks have signed collaboration agreements with various African financial services providers with the aim of boosting Japanese trade and investment on the continent.

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Indian banks fear for maturing L/Cs after PMCB collapse

Banks in India are telling the Reserve Bank of India (RBI) that they are very concerned about the prospects for maturing letters of credit (L/Cs) issued by the failed Punjab & Maharashtra Co-operative Bank (PMCB).

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TradeSun to introduce AI to L/C processing

A new financial technology (FinTech) company has entered the trade finance market with a product that aims to improve letter of credit (L/C) processing.

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Former bank manager denies participation in US$2 billion PNB L/C fraud

Former Punjab National Bank (PNB) deputy manager Gokulnath Shetty is refusing to cooperate with the Indian authorities investigating his role in the US$2 billion letter of credit (L/C) and letter of undertaking (LoU) fraud at the bank, allegedly perpetrated by diamond merchants, Nirav Modi and his uncle, Mehul Choksi.

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Digital L/Cs for major Austrian banking group

Fintech specialist Intellect Global Transaction Banking (IGTB) has implemented its Digital Trade Finance (DTF) platform for two members of Austria's Raffeisen Banking Group, which in total comprises nearly 500 cooperative banks, most of which exclusively provide services within each Austrian state.

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Controversy over L/Cs for Ontario's second licensing round for cannabis retailers

The Canadian province of Ontario in August completed a second round of licensing recreational cannabis stores, with the aim of establishing 50 new retailers that would start trading as early as October.

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EGFI asks for authority to counter difficulties with L/Cs for Iran

The managing director of the Export Guarantee Fund of Iran (EGFI) has written to the Iranian president asking for more authority for the fund to step in to provide finance for traders unable to access letters of credit (L/Cs) due to US sanctions.

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L/C over Voltron platform features in first paperless iron ore transaction

Digital trade platform provider essDocs says it has completed the world's first integrated paperless iron ore trade transaction.

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Malta's IIG Bank expands L/C offering with Temenos solution

Temenos has announced that the Malta-based trade finance bank, IIG Bank, has gone live with its digital front office and core banking products, Infinity and T24 Transact respectively.

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Failure of Indian power companies to put up L/Cs deterring solar investment

India's solar power developers may be deterred from participating in state tenders because distribution companies are still not issuing letters of credit (L/Cs) as a payment security mechanism.

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Former CDB chairman investigated for L/C fraud

The former chairman of China's major state-owned bank responsible for raising funds for large-scale infrastructure projects, including the Three Gorges Dam and the Shanghai Pudong International Airport, is under investigation for letter of credit (L/C) fraud.

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HSBC reports first yuan-denominated blockchain L/C transaction

HSBC has completed the first blockchain or distributed ledger letter of credit (L/C) transaction in the Chinese currency.

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SME Protect aims to reduce UAE-based firms' L/C reliance

The UAE's federal export credit company, Etihad Credit Insurance (ECI), has launched a new specialised insurance cover for UAE-based companies involved in international trade.

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HSBC executes first blockchain L/C transaction in Korea and Vietnam

HSBC has executed its first blockchain-based letter of credit (L/C) transaction in Korea and Vietnam.

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Standard Chartered completes pilot blockchain L/C transaction for oil shipment

Standard Chartered says it has completed a pilot letter of credit (L/C) transaction on the Voltron distributed ledger or blockchain platform.

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Yes Bank launches facility to improve L/C access for MSMEs

India's Yes Bank is offering a new working capital facility that aims to make letters of credit (L/Cs) more available for micro-, small- and medium-sized enterprises (MSMEs).

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Continuing woes at CMIG add to concerns over Chinese L/C backed bonds

Continuing problems at China Minsheng Investment Group (CMIG) are adding to concerns over the use of standby letters of credit (L/Cs) to back Chinese bonds.

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Apogee failed to put up L/C for purchase of EFCO

Window and door company Pella Corporation is alleging that architectural glass and metal solutions provider, Apogee Enterprises, has failed to make payments for its purchase of manufacturer of architectural aluminium for commercial construction projects, EFCO, from Pella in June 2017. All three companies are US-based.

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L/C employed in innovative financing for East Harlem housing scheme

A letter of credit (L/C) has been used in an innovative financing package to fund affordable housing in the East Harlem district of New York.

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IFC launches initiative to improve L/C access for women

The International Finance Corporation (IFC) in partnership with Goldman Sachs has launched a programme aimed at improving access to letters of credit (L/Cs) and other trade finance instruments for women.

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World Bank's US$100 million for Angola includes L/C support

The World Bank has approved a US$100 million support package for Angola that includes a facility to improve the availability of import letters of credit (L/Cs).

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TangoTrade launches digital L/C alternative

TangoTrade has launched an assured payment solution that functions as a digital letter of credit (L/C) but does not require the participation of major banks.

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Etihad Credit Insurance and Emirates NBD agreement to improve L/C availability

The UAE's federal credit insurance company, Etihad Credit Insurance (ECI), has signed a memorandum of understanding (MoU) with the corporate banking division of Emirates NBD, that aims to improve access to letters of credit (L/Cs) for the bank's customers.

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Acciona and CaixaBank sign first green L/C in Europe

Infrastructure and renewable energy developer, Acciona, says it has arranged the first green letter of credit (L/C) in the European financial system with CaixaBank for a total of US$129 million.

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India introduces requirement for states to put up L/C guarantees for power producers

In an attempt to ensure timely payments by India's states to power generation utilities, the Indian government has made it mandatory for state electricity distribution companies to provide letters of credit (L/Cs) to guarantee they deliver the requirements specified in their power purchase agreements (PPAs).

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Standby L/Cs round tripped in Sterling Biotech fraud case

Sterling Biotech of India round-tripped standby letters of credit (L/Cs) to fraudulently finance its Nigerian oil operations according to India's Enforcement Directorate (ED).

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Alleged L/C fraudster Choksi faces extradition to India

Diamond merchant Mehul Choksi could soon be extradited to India to face charges related to the US$2 billion letter of credit (L/C) and letter of undertaking (LoU) fraud at Punjab National Bank (PNB).

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EBRD agrees L/C oriented trade finance programme in Ukraine

The European Bank for Reconstruction and Development (EBRD) says it has signed an agreement with Ukrgasbank of Ukraine worth a total of US$40 million to support Ukrainian businesses with the aim of stimulating regional and international trade.

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Voltron L/C platform successfully links with another blockchain platform

HSBC and UAE-based Landmark Group have completed a first of its kind transaction that connects two independently-built blockchain platforms.

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L/Cs employed in massive tax fraud

India's Goods and Service Tax (GST) Commission is clamping down on firms raising fake GST invoices and claiming input tax credit (ITC) from the government.

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L/C shortage may impede Libya's UN-recognised government's struggle

Banks reluctant to provide letters of credit (L/Cs) for Libya's businesses may be impeding the struggle of the country's UN-backed government in Tripoli against military commander Khalifa Haftar.

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Indian investigators close in on L/C fraudsters

India's Enforcement Directorate (ED) has conducted searches in several locations for evidence in support of allegations of letter of credit (L/C) fraud within or connected with the Varron Group.

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Fewer L/Cs help Lloyd's of London to ratings upgrade

S&P Global Rating has upgraded Lloyd's of London, the global insurance market that services over 200 countries and territories, to stable from negative.

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Bangladesh Supreme Court jails alleged L/C fraudster

A Dhaka court has sent Hallmark Group Chairman Jasmine Islam to jail in a case involving the alleged embezzlement of the equivalent of millions of US dollars through a fake letter of credit (L/C).

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L/C to guarantee Egypt will pay fine for stopping gas exports to Israel

A letter of credit (L/C) from Egypt's central bank is to guarantee that the country delivers on its obligations under a new settlement of a long running dispute over Cairo's ending of exports of gas to Israel.

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US sanctions halt L/Cs for Indian imports of Iranian crude

A lack of letter of credit (L/C) availability is preventing India receiving shipments of Iranian crude oil out of Chabahar Port in southeast Iran.

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Trusts a cheaper option than L/Cs for captive insurers

Captive insurance companies - insurers that are wholly owned and controlled by their insureds - are paying over the odds for their collateral arrangements due to an inertia when it comes to exploring the use of captive collateral trusts instead of letters of credit (L/Cs) according to an industry expert.

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L/Cs may play a role in US opioid epidemic cases

Speculation is growing about the role letters of credit (L/Cs) may play in an anticipated slew of lawsuits anticipated as some of the US' largest pharmaceutical firms and their owners face massive fines for their part in the country's devastating opioid epidemic.

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Conventional L/C wins Energy Risk Award

A financing that was rescued at the eleventh hour by a conventional letter of credit (L/C) has been declared deal of the year for North America at the Energy Risk Awards 2019.

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More than 30 consortia working on blockchain applications

More than 30 consortia comprising mainly financial institutions are working on blockchain applications according to a recent report published by Trade Finance Global (TFG).

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Captive insurers replacing L/Cs with surety bonds

Commercial entities are starting to see surety bonds as an attractive alternative to traditional letters of credit L/Cs according to the Insurance Business magazine.

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Petrobras says bonded storage will improve L/C terms for Chinese refiners

Brazil's Petrobras expects to be able to offer improved letter of credit (L/C) terms to Chinese refiners once its deliveries of crude cargo to bonded storage facilities begin.

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Iran ready to draw on US$2.4 billion Chinese L/C for high-speed railway

Iran Railways has a US$2.4 billion letter of credit (L/C) ready to be drawn upon for work on the high-speed rail line between Tehran and Isfahan, the deputy dead of Iran Railways has announced.

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International trade tensions good for L/C business

Banks' revenues from international trade finance fees are in the best shape for years due to increasingly volatile cross-border trade relations that are driving traders towards letter of credit (L/C) terms according to Coalition, a banking-industry data tracker.

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Centralised KYC database could save L/C providers millions of US dollars each year

The majority of respondents surveyed for BNY Mellon's new global paper, Overcoming the Trade Finance Gap: Root Causes and Remedies, said that centralised know-your-customer (KYC) databases would hold the most value in reducing trade finance rejection rates and closing the trade finance gap.

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Advertising agency wants US$3 million L/C from US gun lobby

The advertising agency that represents the US' National Rifle Association (NRA) says the non-profit organisation that lobbies for gun rights must post a US$3 million letter of credit (L/C) within days.

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Newly launched Visa B2B Connect can support L/C transactions

Global payments specialist Visa has launched the Visa B2B Connect network, a cross-border B2B (business-to-business) payments network that enables financial institutions to quickly and securely process high-value corporate cross-border payments globally.

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Afreximbank opens opportunity for increased L/C access for Comoros

The African Export-Import Bank (Afreximbank), which provides a range of letter of credit (L/C) offerings, is in discussions to provide financing for transactions valued at about US$100 million in Comoros, the bank's president Benedict Oramah says.

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L/Cs remain low risk says ICC Trade Register report

The International Chamber of Commerce (ICC) Banking Commission has released its 2018 Trade Register report.

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ICC WCF issues guidelines for certificates of origin used in L/C transactions

The International Chamber of Commerce (ICC) World Chambers Federation has launched a revised version of its International Certificate of Origin (CO) Guidelines that include advice on certificates used in many letter of credit (L/C) transactions.

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Banka OTP Albania signs up to EBRD's trade facilitation programme

The European Bank for Reconstruction and Development (EBRD) says it has signed two agreements with Banka OTP Albania worth a total of EUR 60 million (US$67.2 million) to support small- and medium-sized enterprises (SMEs).

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New UK pension rules could be opportunity for L/C providers

New accounting rules in the UK could leave pension schemes for companies on the London Stock Exchange £100 billion (US$127 billion) worse off.

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L/Cs failing to solve Zimbabwe's fuel shortages

Zimbabwe is continuing to issue letters of credit (L/Cs) for fuel imports, but these appear not to be alleviating the country's fuel shortages nor solving importers' problems paying foreign suppliers.

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Conflict has the potential to stop Libya's L/C flows

Libya's banks may no longer be able to process payments or issue letters of credit (L/Cs) to import the essential goods on which the country is highly dependent if the current political and military conflict continues between the Tripoli-based government and east-based military forces.

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Preferential L/Cs for essential imports into Egypt

Egypt's importers will be able to obtain letters of credit (L/Cs) at preferential exchange rates for essential goods during June according the country's finance ministry.

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L/Cs for Cuba increasingly hard to come by for US exporters

Farmers and agribusinesses in the US are finding it increasingly difficult to arrange letters of credit (L/Cs) for sales to Cuba.

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Electronic L/Cs essential for Attijariwafa Bank-Egypt's growth strategy

Electronic letters of credit (L/Cs) are an essential component in Attijariwafa Bank-Egypt's target to attract 70 new credit customers with loans exceeding 3 billion Egyptian pounds (E£3 billion - US$176 million) by the end of this year according to the bank's corporate banking director, Tamer Ragheb.

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Banking Regulation and the Campaign to Mitigate the Unintended Consequences for Trade Finance: A Milestone Report

ICC Banking Commission's report assesses the next steps for ensuring that regulation does not hinder the availability of trade finance and remains relevant in a digital landscape.

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Iran to fill the L/C gap caused by US sanctions

Iran "will fill the gap" caused by US sanctions that severely limit the country's access to letters of credit (L/Cs) according to chairman and chief executive officer of the Export Guarantee Fund of Iran EGFI, Afrooz Bahrami.

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Indian investigators press fresh case against diamond trade L/C fraudster

India's Central Bureau of Investigation (CBI) has registered a fresh case against absconding diamond dealer Jatin Mehta, his company Winsome Diamonds and Jewellery and a Jordanian national, Hathyam Salman Ali Obaidah.

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Japanese prosecutors say Saudi businessman provided Ghosn with US$20 million and L/C

Japanese prosecutors have amended one of their indictments against former Nissan Motors chairman Carlos Ghosn, alleging that he received US$20 million from Saudi Arabian businessman, Khaled Al Juffali.

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Florida court dismisses Fluor's "wrongful" L/C claim

A court in the US state of Florida has dismissed Fluor Enterprises' claim that Duke Energy wrongfully drew down a US$67 million letter of credit (L/C) issued in connection with Fluor's construction of a gas-fired electrical generation facility in Citrus County, Florida.

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Albania withdraws PSA after oil firm fails to put up L/C guarantee

A Canadian oil company has had its licence to produce oil withdrawn for failing to produce the letter of credit (L/C) the Albanian government wanted to guarantee that work specified in its licence would be completed.

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Voltron L/C consortium swells to more than 50 banks

Blockchain letter of credit (L/C) application consortium Voltron has grown to include more than 50 banks and corporates following the completion of trials.

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Colombian oil exploration L/C dispute finally settled

Range Resources has announced that a court in Colombia has finally approved the settlement of a dispute over letters of credit (L/Cs) and work commitments in the country.

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HSBC in 'unusual' L/C deal with controversial UK businessman

HSBC has entered into an 'unusual' loan deal with Arcadia, the UK-based retail group owned by Philip Green.

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L/Cs feature in ADB's new US$100 million facility for Pacific island renewables

The Asian Development Bank (ADB) has approved an umbrella facility of up to US$100 million to provide financing support for letters of credit (L/Cs), loans and guarantees to overcome constraints to private sector investment in renewable power projects in Pacific island countries.

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Controversial L/C-backed bond may benefit investors

Letter of credit (L/C) backing for a bond may help contain a debt crisis at one of China's best known private equity houses, but it appears to justify long held concerns about lenders providing Chinese L/C backed bonds.

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Yemen's central bank announces greater L/C availability

Yemen's central bank in the southern port of Aden says it is ready to supply commercial and Islamic banks with additional foreign currency.

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South Africa's FNB to offer Sharia compliant L/Cs

One of South Africa's 'big five' banks says it will offer Sharia compliant letters of credit (L/Cs) alongside several more new Islamic banking offerings.

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New UK-based trade bank to provide L/C offerings

British industrialist Sanjeev Gupta's GFG Alliance has completed the acquisition of Diamond Bank UK.

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Sri Lanka aims to improve credit system liquidity by scrapping L/C margin on cars

Sri Lanka's credit system liquidity is expected to receive a boost after cash tied up in import letters of credit (L/Cs) for cars was released into the banking system according to the governor of the Central Bank of Sri Lanka.

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essDOCS agrees to partner for Voltron's blockchain L/C application

Paperless trade solutions provider essDOCS has entered into an agreement to integrate its CargoDocs Doc Ex solution into the blockchain-based Voltron application. Voltron, which is developed on R3's Corda platform, provides a multi-bank channel for companies to digitally manage the issuance of letters of credit (L/Cs) and electronic presentation of trade documents, including title documents such as bills of lading (B/Ls).

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Supply chain financing replacing L/Cs at Tom Tailor

German integrated lifestyle clothing company Tom Tailor has used its environmental, social and governance (ESG) framework to introduce supply chain financing solutions to replace the letters of credit (L/Cs) it used to rely on in transactions with suppliers and distributors.

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Zimbabwe's central bank and oil producers at odds over L/C availability

Zimbabwe's cooking oil producers and the country's central bank governor appear to be at odds over whether foreign currency and letters of credit (L/Cs) are available for the raw materials the manufacturers need.

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L/C offerings help banks win Asiamoney's Middle East Awards

Excellent delivery of letter of credit (L/C) offerings has been a factor behind several banks doing well in Asiamoney's Middle East Awards, 2019.

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Update to The Wolfsberg Group, ICC and BAFT Trade Finance Principles

Since the publication of the joint 2017 Wolfsberg Group, ICC and BAFT Trade Finance Principles, much has happened in the way of discussion and cooperation between various industry groups in the space of financial crime related to trade finance. This updated edition has been expanded to offer more detail around what is meant by various risk mitigation activities.

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Sberbank writes first Islamic L/C as it mulls Gulf expansion plans

Sberbank has announced its first ever Sharia compliant letter of credit (L/C) as it looks to expand its Islamic financing offerings in the Gulf region.

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The legal status of electronic bills of lading

The ICC Banking Commission conducted a survey on the legal status of eB/Ls when converted from an electronic record. This report sets out the relevant issues found and the results of the survey, which covered ten jurisdictions.

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Ethiopia and World Bank study to allow foreign banks to ease L/C woes

The government of Ethiopia has launched a study assisted by World Bank experts with the aim of liberalising the country's financial system.

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Calgary replaces L/Cs with Development Surety Bonds for property developers

The City of Calgary has substantially replaced the requirement for property developers to put up letters of credit (L/Cs) to guarantee they fulfil their construction contracts and associated obligations with a Development Surety Bond (DSB).

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Indian Banks' Association seeks clarification on L/C treatment under new guidelines

The Indian Banks' Association (IBA) is still seeking clarification on how to treat letters of credit (L/Cs) and bank guarantees under the country's new banking guidelines.

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Wool industry's first blockchain L/C transaction

Australian wool exporter Fox & Lillie and HSBC say they have completed the first Voltron blockchain network transaction with a digitised letter of credit (L/C) between Australia and China for a wool shipment.

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Recreational cannabis retailers in Canada face L/C draw down

Recently licensed recreational cannabis retailers in Ontario are facing a draw down on letters of credit (L/Cs) for failing to open bricks-and-mortar stores in the Canadian province.

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UAE partnership to enhance L/C offerings

The UAE's Etihad Credit Insurance (ECI) has partnered with First Abu Dhabi Bank (FAB), to cooperate in developing enhanced letter of credit (L/C) and other trade finance offerings.

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Egypt reintroduces L/C terms for wheat imports

Egypt will go back to paying its grain suppliers on letter of credit (L/C) terms with payment within 180 days instead of immediately according to a government source.

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China Banking Association presses ahead with blockchain L/C applications

The China Banking Association (CBA) has launched a blockchain-based trade finance platform with the aim of improving the efficiency of Chinese trade finance.

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Citi shelves bank-backed cryptocurrency plans to focus on blockchain L/C applications

Citigroup has quietly shelved its plans for a bank-backed cryptocurrency but remains keen to pursue the use of blockchain applications in other areas according to Citi's global head of innovation for treasury and trade solutions, Gulru Atak.

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Bank of China to issue renminbi L/Cs in Sri Lanka

Bank of China (BoC) has said it will issue renminbi-denominated letters of credit (L/Cs) from a growing number of branches in Sri Lanka.

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L/Cs to help operationalise Sri Lanka's green vehicle tax

Sri Lanka will use letters of credit (L/Cs) opened for imported automobiles to provide incentives for buyers of electric vehicles and disincentives for purchasers of hybrid fossil fuelled-electric vehicles.

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Fugitive jeweller faces extradition from UK to India to face US$2 billion L/C fraud charges

Fugitive Indian celebrity jeweller Nirav Modi, wanted for his part in an alleged US$2 billion fraud in which he employed fraudulently obtained letters of credit (L/Cs) and letters of undertaking (LoUs), is facing legal proceedings in Britain to extradite him from there back to India.

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CBA launches software to comply with new SWIFT L/C messaging protocols

Norwegian software vendor Commercial Banking Applications (CBA) says it has released a new user-friendly solution to comply with the SWIFT electronic messaging platform's new letter of credit (L/C) requirements.

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HSBC seeks South Korean partners for blockchain L/C project

Global bank HSBC is seeking to forge ties with South Korean banks to launch a blockchain platform enabling companies to process and settle their invoices for trade efficiently, according to Korean press reports.HSBC is looking to commercially launch the Voltron platform in a project that began within the R3 blockchain consortium that aims to resolve issues of time-consuming processes and faulty documentation associated with paper-based letters of credit (L/Cs).

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L/C processing times to blame for Zimbabwe's fuel shortages

Zimbabwe's central bank governor has blamed the time taken to arrange and execute letter of credit (L/C) transactions for fuel shortages and prices hikes while fuel consumption in the country is 20 per cent less than normal.

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L/C settlements behind Angola's import debt reduction

Angola's debt related to imports of goods amounted has reduced significantly according to the head of the country's central bank, José de Lima Massano.

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Increased L/C volumes underline trouble at Tesla

After year full of regulatory fights, several executive departures and a volatile share price, suppliers are increasingly asking for letters of credit (L/Cs) if carmaker Tesla is the buyer.

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Tanzania still waiting for L/C in controversial cashew nut deal

Tanzania is still awaiting payment for the equivalent of US$180 million for 100,000 tonnes of cashew nuts the government controversially agreed to sell to a Kenya-based company, Indo Power, in a deal signed in Arusha in January.

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Kenya looks to L/Cs to guarantee oil and gas levies

Kenya is looking to ask oil companies to put up standby letters of credit (L/Cs) to guarantee the firms pay surface and training levies to the government.

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New investors for VAKT's blockchain platform to replace L/Cs

Vakt, a company aiming to modernise commodity trading by blockchain, has announced it has received investment from three new strategic investors.

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HSBC Philippines launches L/C tracking service

HSBC's unit in the Philippines has said it is ramping up its digitisation efforts to be more cost-effective and has launched a tracker that allows customers online access to their letter of credit (L/C) transactions.

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Tanzanian MP wants L/C issuing bank in controversial cashew nut deal named

An opposition member of parliament (MP) in Tanzania, Zitto Kabwe, has called on the Bank of Tanzania to publicly name the bank that issued a letter of credit (L/C) that facilitated a controversial sale of Tanzanian cashew nuts to a buyer in Kenya.

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Fluor takes Duke Energy to court in L/C dispute

Fluor Enterprises has alleged in a federal court in the US state of Florida that Duke Energy wrongly tapped a US$67 million letter of credit (L/C) that was issued in the event of a power generation facility not being completed.

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UAE export credit agency to provide L/C support through Standard Chartered

Etihad Credit Insurance (ECI), the UAE's federal export credit agency, has signed a memorandum of understanding (MoU) with Standard Chartered Bank (StanChart) to provide what they say will be seamless access to letter of credit (L/C) and other trade credit solutions and funding for UAE businesses.Under the MoU, StanChart and ECI will collaborate to support UAE-based exporters through various financing and funding solutions.

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Incomeland to launch bank-free LC Lite

The founders of global invoice finance provider Incomlend are launching a blockchain-based letter of credit (L/C) platform.

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SWIFT announces partnership with blockchain L/C specialist R3

Financial messaging service SWIFT has said it has entered into a partnership with R3, a leading consortium amongst several initiatives developing blockchain platforms for trade finance operations.

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Thailand's LH Bank expanding L/C operations

Thailand's LH Bank has announced that it is intent on substantially expanding its letter of credit (L/C) and other trade finance operations in response to the continued growth of the country's exports and imports.

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Low risk L/Cs an investment opportunity for institutional investors

Low risk letters of credit (L/Cs) and other trade finance offerings provide untapped opportunities for institutional investors according to Cerulli Associates.

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Five banks stand to lose US$762 million if Californian utility declares bankruptcy

Five banks that put up letters of credit (L/Cs) to guarantee municipal debt issued on behalf of the Pacific Gas and Electric Company (PG&E) may lose US$762 million if the utility is declared bankrupt.

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Electronic bill of lading enhances L/C and guarantee issuance

Pacific International Lines (PIL) has used an electronic bill of lading (e-BL) built on the IBM Blockchain Platform in a successful real-time pilot tracking of a shipment of mandarin oranges from China to Singapore.

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Devaluation of Bangladeshi currency would put pressure on L/Cs

Sustained high demand for US dollars by commercial banks in Bangladesh is putting pressure on the currency, prompting some experts to suggest that the taka should be devalued.

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Oil majors move closer to commercial blockchain-based L/Cs

Oil majors Chevron and Total as well as Indian refiner Reliance Industries, have joined and invested in the Vakt blockchain-based global commodities platform.

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More than US$400 million of L/Cs due, but Pakistan State Oil financing plan delayed

Pakistan State Oil (PSO) has around US$408 million of letter of credit (L/Cs) obligations due to its suppliers.

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L/Cs feature in Texas wind farm financing

Letters of credit (L/Cs) are a key feature in the financing of the 300 megawatt (MW) Ranchero Wind Farm project in Crockett County in the US state of Texas

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Zimbabwe's central bank agrees to guarantee L/Cs to avoid manufacturing catastrophe

The government of Zimbabwe has approved an emergency US$400 million credit facility for manufacturing companies so they can continue to import critical raw materials.

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India rejects Iran's request for Indian banks in Tehran, L/C arrangements already sufficient

India is reported to have rejected a request by the Iranian government to approve the opening of branches of Indian banks in Tehran.

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HSBC reports settlement of more than US$250 billion DLT transactions

HSBC says it has settled more than US$250 billion in transactions using distributed ledger technology (DLT).

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Japan receives regulatory clearance for L/Cs for Iranian oil

Japan's leading banks will be able to issue letters of credit (L/Cs) for Iranian oil transactions after receiving final regulatory clearance.

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FinTech startup Ripple counts L/C specialist amongst latest haul of customers

Financial technology (FinTech) startup Ripple says it has acquired another 13 customers for its RippleNet global payment network, including letter of credit (L/C) specialist Euro Exim Bank.

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Senior official denies L/C bias at Yemen's divided central bank

A central banker in Yemen has denied claims that letters of credit (L/Cs) for much needed food imports to alleviate widespread hunger in the country divided by war are only available in certain areas.

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Blockchain L/Cs amongst key trends in marine transportation

Global technology research and advisory company Technavio has published a report highlighting the penetration of blockchain technology in marine transportation as one of the key trends in the global refrigerated sea transportation market.

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ICICI Bank digitises L/Cs in Trade Online revamp

India's ICICI Bank has announced that it has revamped its Trade Online platform for export and import transactions by introducing an array of new digital services on it, including online letter of credit (L/C) offerings.

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Saudi businessman helped obtain L/C for ousted Nissan chairman

New misconduct allegations brought by Japanese prosecutors say that someone helped the sacked Nissan chairman Carlos Ghosn obtain a letter of credit (L/C) to help bail him out of financial difficulties.

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Primechain launches blockchain platform for L/C issuance and sharing

Blockchain start-up Primechain Technologies has launched a platform that it claims enables the issuance and sharing of letters of credit (L/Cs) in a secure and confidential manner.

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Chinese battery firm fails to issue L/Cs to renege on contract with Glencore

A Chinese battery firm has simply failed to issue letters of credit (L/Cs) to renege on a three-year contract to buy cobalt hydroxide from miner-trader Glencore.

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L/C to feature in Ghana's renegotiated deal with Ameri Energy

The Ghanaian government has renegotiated a controversial power purchase agreement (PPA) between Ghana and Africa and Middle East Resources Investment Group (Ameri).

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Interpol issues Red Corner notice against billionaire alleged L/C fraudster

International police organisation Interpol has issued a Red Corner notice against absconded billionaire diamond trader Mehul Choksi who is accused of cheating state-run Punjab National Bank (PNB), allegedly in collusion with his nephew, celebrity jeweller, Nirav Modi.

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Foreign banks refusing L/Cs for transactions with Nicaragua

Foreign banks are refusing to accept letters of credit (L/Cs) for transactions involving Nicaragua according to the president of the country's Consultants for Business Development group, Nestor Avendano.

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Forensic auditor to investigate L/C related allegations at ICICI Bank

India's ICICI Bank is expected to appoint a forensic auditor to probe allegations of improper use of letters of credit (L/Cs).

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L/C fraudster sentenced to 23 years in prison

The man at the centre of the 2014 Qingdao metal warehousing scandal in China that had the impact of making letters of credit (L/Cs) much harder to come by for commodity traders in the region has been jailed.

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Corporation Bank officials under investigation for L/C fraud

Two officials at India's Corporation Bank have been arrested and two more are reportedly under investigation in a fraud case involving letters of credit (L/Cs).

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Region's largest L/C confirmation for Iraqi power project

Trade Bank of Iraq, Standard Chartered and General Electric (GE) have closed what they claim to be the region's largest letter of credit (L/C) confirmation of its kind.

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Digital L/C features in blockchain based crude sales platform

A digital letter of credit (L/C) provided by the Komgo financing platform is to feature in crude oil deals conducted on a live blockchain-based platform called Vakt that recently went live.

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Chinese bank brings L/Cs to Tanzania and beyond

China Dasheng Bank Limited (CDBL) has become the latest bank to provide letters of credit (L/Cs), guarantees and other trade finance services in Tanzania and beyond.

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Libyan L/Cs beginning to flow again

Letters of credit (L/Cs) for Libya's formal economy are beginning to flow again according to the deputy prime minister of the UN-backed Libyan government, Ahmed Maiteeg.

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L/C specialist Stern Bank to establish trade finance team in London

Puerto Rico based Stern Bank is expanding its operations by opening a trade finance operation in London.

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CDC to put US$100 million into Afreximbank's trade programme

The African Export Import Bank (Afreximbank) and the UK's development finance institution, CDC Group, have signed a US$100 million participation agreement to support the bank's Trade Facilitation Programme.

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Zambian ministers at odds over lack of L/Cs causing fuel shortage

Fuel shortages in Zambia have been blamed on a lack of foreign exchange for letters of credit (L/Cs), but the Zambian finance minister says there is no longer an L/C shortage.

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HSBC claims ground breaking transaction validates blockchain in L/C deals

HSBC India and ING Bank Brussels have successfully executed a blockchain enabled, live trade finance transaction incorporating a letter of credit (L/C) jointly with Reliance Industries and Tricon Energy.

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Blockchain system to detect fraud could have prevented Modi's US$2 billion L/C fraud

SWIFT and financial technology company, MonetaGo, are to collaborate to develop a blockchain system to help Indian banks prevent fraud.

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BNP Paribas and HSBC complete landmark digitised L/C transaction

BNP Paribas and HSBC Singapore have completed Singapore's first fully digitised end-to-end letter of credit (L/C) transaction between two different companies.

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No L/Cs for four days for FAB customers

Letters of credit (L/Cs) will not be available for four days from First Abu Dhabi Bank (FAB) as it shuts down for four days later this month.

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L/C flows resume in Myanmar

Private and state banks in Myanmar have once again begun offering letters of credit (L/Cs), raising hopes the country's trade finance operations are reviving.

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SWIFT to suspend access to Iranian banks

The SWIFT financial messaging service has said it will suspend access for at least some Iranian banks.

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NR Capital chooses Chinsay's to digitise L/Cs and other supply chain processes

Singapore based NR Capital, which offers an alternative to traditional balance sheet lending to small- and medium-sized enterprises in the bulk commodity market sector, says it will implement Chinsay's Contract Management Platform to digitalise the process of drafting, issuing and validating commodity contracts.

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Doha Bank asset swaps follow curtailing of L/C business between Qatari banks and those in Saudi-led bloc

Qatar's Doha Bank has cut its exposure to the UAE banking system through an asset swap with UAE banks amid strained relations between the two countries, according to the Reuters news agency.

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Coinsilium inks advisory partnership with L/C start-up

Coinsilium Group, which describes itself as a blockchain venture builder, advisor and investor, has signed an advisory partnership agreement with LC Lite, a firm developing a letter of credit (L/C) platform that aims to connect buyers and suppliers on a single online system.

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Blockchain-based eTrade Connect platform to reduce L/C fraud

A new blockchain-based trade finance platform developed by HSBC, Standard Chartered and 10 other banks, aims to reduce the risk of fraud in letter of credit (L/C) transactions.

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R3 and eight banks launch Voltron blockchain L/C platform

Eight banks and blockchain technology specialist R3 have launched a new initiative named Voltron that initially aims to use blockchain technology to bring significant efficiencies to transacting letters of credit (L/Cs).

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Deutsch Bank and Standard Bank cooperate in L/C-based programme for US exports to Africa

Deutsche Bank and Standard Bank of South Africa have signed a memorandum of understanding (MoU) to closely cooperate under the US government's programme designed to encourage exports of certain US agricultural output to eligible emerging markets.

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National Bank of Canada trials blockchain standby L/Cs

National Bank of Canada (NBC) has collaborated with ICT and business consulting services firm CGI and blockchain technology start-up Skuchain on a pilot programme aimed at improving and streamlining the processes for negotiating standby letters of credit (L/Cs) and guarantees.

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Trade Information Network to accelerate digitisation of trade finance

Global banking giants have joined forces to create the Trade Information Network, which they say will accelerate the digitisation of traditionally paper-based processes, including letters of credit (L/Cs) and provide trade finance needs currently unmet in the early links of the supply chain.

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L/C examination leads to ICICI Bank bringing court action against diamond dealers

ICICI Bank of India has filed a petition in a US court against 11 executives of Mumbai-based diamond company Shrenuj and Co for allegedly defrauding the bank.

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Eight-year sentence for fraudster who promised valuable L/Cs

A UK-based man who fraudulently purported he could provide valuable standby letters of credit (L/Cs) has been jailed for eight years.

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ExWorks presents solution for fully leveraged firms to obtain L/Cs

The managing director of non-bank provider of domestic, import, and export trade finance products, ExWorks, says his firm can help companies finance their supply chains even when they have insufficient balance sheet strength to open letters of credit (L/Cs).

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Union Bank launches Nigeria's first domestic L/C

Nigeria's Union Bank has launched what it calls a local letter of credit (L/C) at a trade finance conference for its corporate customers in Lagos.

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Small US town an L/C away from grocery store

A small town in the US state of Kansas is a letter of credit (L/C) away from having its own grocery store for the first time in 17 years.

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Sri Lanka imposes L/C requirement for specific goods

Sri Lanka's central bank has imposed a requirement that importers of certain goods must buy on letter of credit (L/C) terms.

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ICC agreement with GCD to extend Trade Register coverage

The International Chamber of Commerce's (ICC's) Banking Commission has announced a long-term agreement with Global Credit Data (GCD), to provide more granular data and help extend the coverage of the ICC Trade Register beyond the trade finance products traditionally included in the register such as letters of credit (L/Cs).

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India's CBI unearths round-tripping L/C fraud

India's Central Bureau of Investigation (CBI) has uncovered an alleged letter of credit (L/C) fraud involving Chennai-based SLO Industries and Aran Steels.

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Afreximbank presents new trade facilitation programme

The African Export-Import Bank (Afreximbank) is presenting its new trade facilitation programme, developed in response to the retreat of global banks from Africa's financial sector, a process also called de-banking.

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Digital L/C features in new commodities blockchain platform

Fifteen of the world's largest institutions, including banks and trading firms are launching a blockchain-based platform that promises to feature digital letters of credit (L/Cs).

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Sri Lanka imposes 100 per cent margin deposit on L/Cs for motor vehicles

The Central Bank of Sri Lanka (CBSL) has imposed a 100 per cent margin deposit requirement against letters of credit (L/Cs) opened at commercial banks for imported motor vehicles.

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R3 to launch Voltron blockchain L/C in 2019

Financial innovation company R3 says its Voltron blockchain platform for letters of credit (L/Cs) will go into production in 2019.

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Blockchain L/C alternatives will benefit smaller businesses

Global management consultancy Bain & Co has published a report suggesting that smaller businesses will benefit most if they migrate from doing business on letter of credit (L/C) terms to using facilities available on trade finance platforms based on blockchain or distributed ledger technologies.

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UN failing to curb Libyan L/C abuse

A senior commander in Libya's Anti-Terrorism Force has criticised the work of the United Nations Support Mission in Libya (UNSMIL).

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Indonesia may employ L/C requirement to prop up currency

Indonesia may introduce new letter of credit (L/C) requirements alongside new rules for commodities exporters to guarantee funding for shipments through Indonesian banks or branches of foreign banks in the country, trade minister Enggartiasto Lukita has said.

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L/Cs next for blockchain startup CargoX

CargoX says it is planning to launch a blockchain letter of credit (L/C) following the successful trial of a bill of lading executed on the Ethereum blockchain platform.

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Angola plans eight foreign exchange auctions to improve import L/C availability

The National Bank of Angola (BNA) is conducting eight foreign exchange auctions in September to make euros available for letter of credit (L/C) transactions.

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Indonesia to insist on L/Cs for fuel imports as government seeks to support the rupiah

Indonesia wants the country's power generators and refineries to pay for imports on letter of credit (L/C) terms as part of the government's efforts to reduce imports and support the flagging rupiah.

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Turkey bids to convert defence L/Cs from US dollars to lira

Turkey is looking to renegotiate its defence contracts so that letter of credit (L/C) and other future obligations are denominated in Turkish lira rather than US dollars.

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L/C abuses a key factor in India's significant increase in bank frauds

The Reserve Bank of India (RBI) has reported a quantum leap in bank frauds in the 2017-18 financial year.

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US banks non-committal over Washington's new sanctions on Iran

Two of the largest US financial institutions are reportedly not committing to cutting Iranian access to international letter of credit (L/C) markets by banishing Iran from the SWIFT messaging network.

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Redwood Markets and EH Energy to deliver L/C alternative to the LNG industry

Redwood Markets and One Source Risk Management have chosen EH Energy, a division of Euler Hermes North America Insurance, to lead a syndicate of underwriters to handle trade credit insurance for the liquefied natural gas (LNG) market through its online trading platform, the Redwood Marketplace.

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Blockchain solution may offer L/C alternative in UAE

Standard Chartered has announced that it is working with Siemens Financial Services on blockchain-based bank guarantees that could provide an alternative for letters of credit (L/Cs) for traders in the UAE.

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Weak demand for Saudi L/Cs as tax reforms bite

Plummeting values of letter of credit (L/C) openings are pointing to a substantial weakening of Saudi Arabia's economy.

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L/C-based infrastructure financing product now available outside the US

Specialist Australian finance house Crossway Capital says it has developed a letter of credit (L/C) based structured finance product for major infrastructure projects that has hitherto only been available in the US.

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Sri Lanka uses L/Cs in drive to cut emissions

Sri Lanka is using letters of credit (L/Cs) to ensure that imported used vehicles meet the country's new emission standards.

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Nigeria creates special window for renminbi denominated L/Cs

The Central Bank of Nigeria (CBN) has created a special window making funds available for renminbi denominated letters of credit (L/Cs).

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Mastermind of US$2 billion L/C and LoU fraud located in Britain

The UK authorities have confirmed that celebrity Indian jeweller Nirav Modi, who allegedly used letters of credit (L/Cs) and letters of understanding (LoUs) to defraud India's Punjab National Bank (PNB) of US$2 billion, is in their country.

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Deepening US-Turkey trade war fears prompt L/C shortages, precipitate free fall in DDGS market

The deepening trade war between the US and Turkey is making it hard for Turkish importers to raise the letters of credit (L/Cs) they need to buy distillers dried grains with solubles, better known as DDGS, from US suppliers.

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US trade restrictions compromise Turkey's L/C availability, steelmakers defiantly turn to Asia

Banks are reportedly becoming increasingly reluctant to write letter of credit (L/C) business for transactions between Turkish sellers and western buyers of steel following Washington's decision to double tariffs on steel and aluminium imports from Turkey and threats from US President Donald Trump's of more punitive sanctions to come.

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PNB may close Hong Kong branch in wake of L/C and LoU fraud

India's Punjab National Bank (PNB) is likely to shut down its Kowloon branch in Hong Kong in the next few days according to local media there.

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G-NEXID members agree reciprocal L/C arrangements

The Global Network of Export-Import Banks and Development Finance Institutions (G-NEXID) met recently in Geneva to discuss how member states could collaborate to close the trade finance gap.

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Currency swap deal will boost L/Cs for China-Nigeria deals

The currency swap deal between China and Nigeria is expected to boost letter of credit (L/C) transactions between the two countries according to a Nigerian business leader.

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RBI told to rescind ban on L/Cs for trade credit

A parliamentary committee has said the Reserve Bank of India (RBI) should rescind its decision to discontinue the issuance of letters of credit (L/Cs) and letters of undertaking (LoUs) for trade credit.

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L/Cs supporting Africa's Trade and Development Bank's growth

Africa's Trade and Development Bank (TDB) wants to position itself as a key regional financial institution to complement the activities of other development finance institutions on the continent such as the African Development Bank and East African Development Bank according to Uganda's finance minister, Matia Kasaija.

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India's banks say no to L/Cs for tea exports to Iran

Prices of Indian tea, much of which is exported to Iran, have fallen 9.1 per cent year-on-year as India's banks increasingly turn down requests for rupee-denominated letters of credit (L/Cs) for trades with Iran, according to the Indian Tea Association (ITA). The association's chairman blames uncertainty about trade with Iran after President Donald Trump pulled the US out of a 2015 nuclear pact with Iran and ordered new US sanctions on Tehran.

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HKMA's new blockchain-based platform set to replace L/C transactions

A new blockchain-based trade finance platform to be developed by the Hong Kong Monetary Authority (HKMA) will eventually provide an alternative to letters of credit (L/Cs) for traders looking for secure open account transactions.

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Turkey says L/Cs for Iran will keep flowing

Turkey appears determined to keep writing letter of credit (L/C) business with Iran despite tougher sanctions imposed on the Islamic Republic by Washington.

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L/Cs start to flow as Ethiopia reforms

Ethiopia's radically reformist new prime minister is introducing policies that appear to be allowing letters of credit (L/Cs) to flow after years of traders being unable to obtain them due to foreign currency shortages.

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Blockchain platform for Chinese L/C auctions

A state-backed financial asset exchange in China's Chongqing city is looking to develop a blockchain solution that could be used for letter of credit (L/C) auctions.

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Libya faces L/C corruption probe

Libyan officials who have been profiting from letters of credit (L/Cs) obtained to manipulate the official and black market exchange rates could be subject to a wide-ranging corruption probe.

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China-US trade war signals bad news for L/C flows

Banks that finance trade in Asia are concerned that the tariff war between the US and China will put further pressure on revenues from their letter of credit (L/C) and wider trade finance operations.

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Angola's L/C funds used for foreign currency sale instead

The National Bank of Angola (NBA) has carried out a euro currency sale using funds earmarked just a month ago for import letters of credit (L/Cs).

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Afreximbank's US$8 billion in a year for L/Cs and trade finance

The African Export Import Bank (Afreximbank) has disbursed over a third of the US$25 billion facility that provides letters of credit (L/Cs) to facilitate intra-African trade, the bank's president and chairman has said.

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Three Indian firms charged over L/C frauds against SBI

India's Central Bureau of Intelligence (CBI) has charged three Mumbai-based firms for cheating State Bank of India (SBI) using letters of credit (L/Cs).

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Large-scale solar project finance features L/C backing

Canada's Innergex Renewable Energy is using a letter of credit (L/C) in the financing package it has arranged for its 250 megawatt photovoltaic solar project that, when completed, will be the largest of its kind in the US state of Texas.

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L/Cs for Indian gold loans must be rigorously checked

National Institution for Transforming India (Niti) is proposing a new policy that would relax the stringent collateral conditions for loans and letters of credit (L/Cs) to jewellers to buy gold.

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Bangladeshi banker says L/C business is booming

Letter of credit (L/C) business is booming for private banks in Bangladesh according to a senior banker.

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OFAC announces wind-down date for Iranian L/C business

The US treasury department's Office of Foreign Assets Control (OFAC) has issued a notice of amendments to US institutions using letters of credit (L/Cs) in transactions with Iran.

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Ecobank Zimbabwe reports L/C successes

Ecobank Zimbabwe has written over US$150 million worth of letter of credit (L/C) business in the Zimbabwean market in the last eight months according to the bank's chairman.

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Whistleblower accuses ICICI Bank of ill advised L/C issuance and round-tripping

A whistleblower has accused India's ICICI Bank of issuing hundreds of letters of credit (L/Cs) to entities related to its troubled corporate borrowers to help them avoid defaulting on their loans according to local media reports.

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Zambia bans L/Cs and guarantees for bankrupt state-owned enterprises

Zambian President Edgar Lungu has ordered several austerity measures, including a ban on the issuance of letters of credit (L/Cs) to some state-owned enterprises, in an attempt to address Zambia's sharply deteriorating debt crisis.

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Angola's central bank governor recommends L/Cs for imports

Letters of credit (L/Cs) look likely to become the preferred financial instrument for imports into Angola according to the head of the country's central bank.

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Bangladesh extends scope of tax on L/Cs, reduces tax rate

The government of Bangladesh has proposed extending the coverage of advance income tax (AIT) on domestic letters of credit (L/Cs) or any financing agreement for purchasing goods

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China CITIC Bank reports on blockchain-based L/C transactions

China CITIC Bank says that during its 2017 financial year it facilitated blockchain-based domestic letter of credit (L/C) transactions worth a total of US$156 million.

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UK business chamber's certification indicates blockchain L/Cs soon

A UK based business chamber has certified an export consignment from an engineering company using blockchain.

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Red Corner Notice issued by Indian investigators of Nirav Modi L/C and LoU fraud

India's Central Bureau of Investigation (CBI) has asked Interpol to issue a Red Corner Notice against absconded celebrity jeweller, Nirav Modi, who Indian investigators want to question in relation to the US$2 billion banking scam involving Punjab National Bank (PNB).

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L/C data indicate sharp rise in imports in Bangladesh

Data on letters of credit (L/Cs) indicate that imports into Bangladesh surged 15 per cent to about US$43 billion in the 10 months to end-April 2018.

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Kenyan government should use L/Cs to support local SMEs

Kenya's culture of late payments is preventing businesses - especially small- and medium-sized enterprises (SMEs) - from investing in growth and contributing to economic recovery according to a director of Sphere Business Africa.

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Afreximbank to support L/Cs for Angolan imports

The African Export-Import Bank (Afreximbank) is to support trade finance facilities for Angola to import essential items on letter of credit (L/C) terms. The facilities are part of up to US$2 billion in financing support to Angola.

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L/Cs for Iranian crude harder to come by

Letters of credit (L/Cs) for Iranian crude for European deliveries are becoming harder to secure, oil traders have told energy information provider Platts.

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Central Bank of Libya governor questions Audit Bureau's L/C related corruption allegations

Central Bank of Libya (CBL) governor Al-Siddiq Al-Kabeer has ordered a financial committee tasked with tracking money laundering to investigate allegations made by the Audit Bureau accusing firms of using letters of credit (L/Cs) in foreign currency smuggling operations.

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Nigeria moves closer to renminbi-denominated L/Cs

The Central Bank of Nigeria (CBN) is set to release the framework for the currency swap deal it agreed recently with China to formally launch transactions in each country's currency.

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PNB bankers misled India's central bank over L/Cs and LoUs in US$2 billion fraud case

Senior officials at India's Punjab National Bank (PNB) misled the central bank in late 2016 over the bank's handling of the SWIFT financial messaging system in respect of letters of credit (L/Cs) and letters of undertaking (LoUs) employed in India's largest ever fraud.

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Bank of India recovers US$1.35 billion from standby L/Cs

Bank of India (BOI) says it has recovered the equivalent of US$1.35 billion from standby letters of credit (L/Cs) issued by other banks.

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Banks agree to launch China's first blockchain L/C

Bank of Shanghai and China Construction Bank have signed an agreement to launch China's first blockchain-based letter of credit (L/C).

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PNB bankers misled India's central bank over L/Cs and LoUs in US$2 billion fraud case

Police have accused senior officials at Punjab National Bank (PNB) of misleading India's central bank in late 2016 over the lender's handling of the SWIFT financial messaging system in respect of letters of credit (L/Cs) and letters of undertaking (LoUs) employed in the country's largest ever fraud.

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India's Infosys blockchain trade finance network will cut out L/C fraud

India's second-biggest software services company says its recently launched blockchain-based trade finance network would avoid the recent spate of letter of credit (L/C) and letter of undertaking frauds.

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Oil trader files suit against Union Bank Nigeria for failing to meet L/C obligations

The Nigerian affiliate of a pan-African oil trader has filed a US$18.6 million lawsuit against Union Bank of Nigeria (UBN).

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PTTPM first Asean firm to use artificial intelligence in L/C processing

A unit of Thailand's majority state-owned oil and gas company, PTT, claims to have become the first Asean firm to use artificial intelligence (AI) in letter of credit (L/C) processing.

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HSBC and ING execute first commercial blockchain L/C transaction

HSBC and ING have executed their first commercial letter of credit (L/C) transaction based on blockchain or distributed ledger technology.

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Islamic Development Bank Group provides L/C support for Bahrain Middle East Bank

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of Jeddah-based Islamic Development Bank Group, has said it will support letter of credit (L/C) transactions in which Bahrain Middle East Bank (BMEB) participates.

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English appeal court upholds Chinese arbitration award in L/C dispute

The English Court of Appeal has upheld the enforcement of a China International Economic and Trade Arbitration Commission (CIETAC) award in favour China-based steel supplier Sinocore and dismissed an appeal from an earlier UK Commercial Court decision in favour of a UK-based buyer, RBRG Trading.

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Eurasian free trade zone and talks between Moscow and Tehran signal more local currency L/Cs

More letters of credit (L/Cs) in national currencies are in prospect with the signing of an initial agreement for a free trade zone between Iran and the Eurasian Economic Union (EAEU).

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Nepalese traders must transact with China and India on L/C terms

Nepalese traders will soon have to start using letters of credit (L/Cs) when buying from or selling to traders in China and India.

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Turkey and Iran commence own currency L/C transactions

Turkey and Iran have issued the first letter of credit (L/C) using their own currencies.

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Punjab National Bank will honour foreign L/Cs

India's state-owned Punjab National Bank (PNB) has issued a statement saying it will honour all foreign letters of credit (L/Cs) as well as inter-bank letters of undertaking (LoUs) issued by it that mature on or before 31 March 2018.

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Commonwealth launches L/C support facility

The Commonwealth of Nations has launched a new trade finance facility that will provide support for letters of credit (L/Cs) in 31 smaller countries.

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Privatisation is not the answer to India's L/C problems

Privatising state-owned banks will not restore confidence in letters of credit (L/Cs) issued by India's banks according to a professor at the National Institute of Public Finance and Policy.

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Indian power promoters failed to meet L/C obligations

India's Central Bureau of Investigation (CBI) and the Gujarat Anti Terrorist Squad have arrested three promoters of Vadodara-based Diamond Power Infrastructure (DPI) in connection with a US$400 million bank fraud.

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Alleged L/C fraudsters face fresh charges

Three men in the US state of New Jersey are facing fresh charges relating to alleged letter of credit (L/C) frauds.

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L/Cs unscathed in Iran's cash crisis says CBI governor

Iran's government is sparing no efforts to contain a currency crisis after the rial hit an all-time low.

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Range Resources and Colombia finally settle dispute over work fulfilment and L/C validity

Australia's Range Resources says it has reached an agreement with Colombia's National Hydrocarbons Agency (NHA) to settle all outstanding claims and disputes between NHA and the consortium of Optima Oil Corporation and the company.

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Fraud case will make L/Cs harder to come by for India's SMEs

The US$1.9 billion fraud unearthed at India's second-largest public sector bank will make letters of credit (L/Cs) harder to come by and more expensive for small- and medium-sized enterprises (SMEs) according to India Ratings and Research.

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Libya's L/C policy under fire

Libya's policy on letters of credit (L/Cs) has come under fire from a member of the country's Presidential Council (PC), the body formed to run the country under the terms of the UN Security Council endorsed Libyan Political Agreement.

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Domestic L/Cs could play a bigger role as protectionism bites and regionalism grows

Domestic letters of credit (L/Cs) could play a bigger role in trade finance as buyers increasingly look for shorter supply chains according to head of global traditional trade products at HSBC, Vinay Mendonca.

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Funding sought for blockchain L/C alternative for Asian SMEs

Singapore-based fintech startup Acudeen is seeking to raise money to provide small- and medium-sized enterprises (SMEs) with what it claims will be a viable alternative to letters of credit (L/Cs).

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L/C could provide evidence in Nawaz Sharif trial

A letter of credit (L/C) could prove instrumental in proving that Pakistan's former prime minister Nawaz Sharif and some of his family used trade-based money laundering techniques to shift illicit funds around the world.

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Moody's says trade finance gap could limit Africa's new free trade area

Africa's massive trade finance gap amounting to US$90 billion is among the major limitations to the continent realising the full potential of a free-trade area in Africa, Moody's has warned.

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US lawyer warns of upcoming L/C risks for US companies

A US lawyer has warned that regulations expected to be introduced by Washington will require US companies to meet a higher burden of proof than big banks in litigation and that L/C risks will be transferred from banks to companies.

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Kenya's energy regulator set to cut L/C margins

Banks in Kenya look set to earn lower fees from letters of credit (L/Cs) opened by oil product importers.

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Jewellery trade frauds may be boosting L/C business

Reports are emerging in India that the use of letters of credit (L/Cs) may be increasing, despite them being used in high profile fraud cases in the jewellery trade.

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Look out circulars issued against alleged L/C fraudsters

India's Central Bureau of Investigation (CBI) has issued look out circulars (LOCs) against the directors of Delhi-based diamond jewellery exporter Dwarka Das Seth International.

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L/Cs underline Egypt's credit expansion

Increased volumes of letters of credit (L/Cs) are an integral part of evidence of an increase in lending by Egyptian banks in 2017 according to data released by the Central Bank of Egypt (CBE).

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Contradictory views on L/Cs and trade finance in 2017

Two apparently contradictory reports have emerged on the amount of trade finance business written in 2017.

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Indian banks warned again not to overreact to L/C scandal

The Associated Chambers of Commerce and Industry of India (Assocham) is continuing to lobby for business-as-usual for banks writing letter of credit (L/C) businsess despite their use in high profile trade-based money laundering cases in the diamond trade.

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UN says Libyan banks received illegal L/Cs worth one billion US dollars

Ten Libyan companies based in the Tripoli suburb of Tajoura received US$1 billion in illegal letters of credit (L/Cs) from two banks according to a UN report.

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South Korea decides not to prosecute KEB Hana Bank for issuing L/C to daughter of corrupt presidential confidante

South Korean prosecutors have decided against pressing charges against a commercial bank for issuing a letter of credit (L/C) to the 19-year old daughter of Choi Soon-sil.

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ICC declares L/Cs lowest risk of all trade finance offerings

Trade and export finance products are low credit risk offerings compared with similar asset classes according to the International Chamber of Commerce's (ICC's) latest survey.

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Improved Iranian credit rating will help reduce L/C costs

Iran's steady climb up the credit risk-rating index is helping to reduce letter of credit (L/C) costs according to an Iranian business leader.

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Banks back out of L/C provision for vintage tankers

Banks are backing out of the market to provide letters of credit (L/Cs) in deals in which ship owners sell older tankers to ship breakers according to a prominent shipbroker.

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HSBC readies itself to launch live trade finance blockchain transactions

HSBC is nearly ready to write live trade finance business based on blockchain technology with clients.

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New case of L/C fraud revealed at Punjab National Bank

One of the largest branded jewellery retailers in the world is under investigation for letter of credit (L/C) fraud.

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Indian business leaders calls for preservation of L/C flows as more frauds emerge

Trade-based money laundering linked to letters of credit (L/Cs) is hitting the headlines in India as new fraud cases emerge in the wake of the Punjab National Bank (PNB) alleged fraud case involving jeweller Nirav Modi's diamond dealings.

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Ten law firms sign up to R3's new centre of blockchain excellence

Ten law firms have signed up to the Legal Centre of Excellence (LCoE) launched by R3, the financial blockchain coalition intent on faster and more accurate letter of credit (L/C) processing and other financial sector blockchain applications.

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Will Reserve Bank of India change its position on L/Cs?

In a July 2015 directive, the Reserve Bank of India (RBI) asked banks to honour their letter of credit (L/C) commitments, even in unauthorised transactions. The central bank said failing to honour L/C commitments could affect the image of the banking system as well as L/Cs and other guarantees as payment mechanisms.

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L/Cs feature in US$1.7 billion diamond scam

Letters of credit (L/Cs) are embroiled in the massive bank fraud in the Indian diamond sector that was revealed last week when Punjab National Bank (PNB) said it had fallen victim to what is at least a US$1.7 billion scam linked to celebrity jeweller Nirav Modi (DC World News, 16 February 2018).

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Punjab National Bank fraud similar to L/C centred Winsome Diamond Group scam

India's Punjab National Bank (PNB) has revealed a massive US$1.7 billion fraud linked to celebrity jeweller Nirav Modi.

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Prominent role for L/Cs in Bank of India's third-quarter losses

Letters of credit (L /Cs) feature prominently in the causes of Bank of India's (BoI's) losses in the quarter ending December 2017.

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New partnership to embed blockchain in L/C processing

The Blockchain in Transport Alliance (BTA) is teaming up with the Wall Street Blockchain Alliance (WSBA) to facilitate the use of blockchain or distributed ledger technology (DLT) in letter of credit (L/C) processing and international trade.

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Deadline looms for participants in ICC's flagship trade finance survey

The deadline for participating in the International Chamber of Commerce (ICC)'s Banking Commission's flagship trade finance survey is looming.

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Libya to clear L/C backlog as economic prospects brighten

Libya's fragile internationally recognised government in Tripoli has given the country's central bank until the end of February to clear the backlog in letters of credit (L/Cs) to importers approved by the economy ministry in 2017.

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Former Morgan Stanley advisors used clients' money to back L/C for wind farm

Two former Morgan Stanley advisors used clients' money to back a letter of credit (L/C) for a wind farm project.

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South East Asian trade finance house and UK L/C specialist join forces to extend global reach

Standby letter of credit (L/C) specialist Bachmann and Welser Capital of the UK and Blend Financial Services of India, a provider of trade finance, corporate and financial advisory services, have signed a memorandum of understanding (MoU) to extend their global reach.

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Oil trader that refused L/C must pay hefty settlement

A Pakistan based oil marketing company that refused to put up a letter of credit (L/C) for an oil shipment has agreed to an out of court settlement with its Dubai based supplier.

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Lack of L/Cs forces PDVSA to alternative financial solutions

Petróleos de Venezuela S A's (PDVSA's) difficulties obtaining letters of credit (L/Cs) have forced the state owned oil company to look at alternative financial solutions.

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L/C specialist issues fraud warning

A specialist letter of credit (L/C) provider has issued a statement warning people of an individual who uses the firm's name to perpetrate frauds.

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First blockchain L/C transaction for agricultural commodities

Dutch and French banks as well as one of the world's largest agricultural merchants have completed what they say is the world's first foodstuff transaction to use the distributed ledger-based digital technology known as blockchain.

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Tax increases for L/Cs in the Philippines

Stamp tax on letters of credit (L/Cs) in the Philippines has doubled as it brings in a radical new taxation system.

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Brexit will impact on L/C usage

A leading consultant in Irish and international trade says trouble is in store for European suppliers selling to British small- and medium-sized enterprises (SMEs) that over recent years have switched from letter of credit (L/C) terms to alternative forms of trade financing such as factoring.

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Turkey and Iran strike deal for local currency L/C business

The central banks of Turkey and Iran have reached agreement on the amount they are prepared to make available to facilitate letter of credit (L/C) transactions in their respective currencies.

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Pakistan's L/C restrictions appear to be helping the economy

Pakistan's imposition of a 100 per cent margin deposit requirement on the opening of certain import letters of credit (L/Cs) appears to be contributing to the country's improved economic outlook.

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Equity Bank wins recognition for L/C provision that helps close the trade finance gap

Kenya's Equity Bank has won recognition for its letter of credit (L/C) services from a leading policy expert.

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Pakistan ready for yuan-denominated L/C business

The State Bank of Pakistan (SBP) has announced that all arrangements for using the Chinese currency for yuan-denominated L/C business are already in place.

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Infosys subsidiary's new blockchain product features L/C solution

A subsidiary of technology and consultancy giant Infosys has launched a blockchain-based trade finance solution that includes letter of credit (L/C) management features.

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Central Bank of Libya denies favouritism and nepotism in L/C issuance

The Central Bank of Libya (CBL) has denied charges of favouritism and nepotism in the way it issues letters of credit (L/Cs).

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US Commercial Service finds solution to Kenyan importer's L/C difficulties

The US Commercial Service has helped a Kenyan importer obtain the letter of credit (L/C) it needed to import equipment required to develop its geothermal energy resources.

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L/C ban may be failing to dampen Nigeria's rice imports

The refusal of the Central Bank of Nigeria (CBN) to grant letters of credit (L/Cs) to the country's rice buyers has failed to dampen imports according to a trade organisation.

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Bank Mellat reports surge in L/C business

Iran's Bank Mellat has reported a steep rise in the amount of letter of credit (L/C) business it has written now that many international sanctions imposed on the country have been lifted.

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Venezuelan crude exports hit 14-year low as L/C shortage bites

Venezuela's crude oil exports continue to be depressed by difficulties experienced by US refiners obtaining the letters of credit (L/Cs) they need.

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Indian onion exports must be on L/C terms

India has imposed a minimum export price (MEP) of US$850 per metric tonne on onions until the end of 2017.

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Mastermind of Iran's largest ever L/C fraud given a 20-year prison sentence

The former head of Iran's largest state-owned bank, who forged letters of credit (L/Cs) to buy a string of companies in the largest embezzlement scandal the Islamic republic has ever seen, has been given a 20-year prison sentence.

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Survey reveals low take up of digital L/Cs and trade finance services

Despite the wide publicity given to the digitalisation of letters of credit (L/Cs) and other digital trade finance services, a surprisingly low proportion of the more than 7,000 respondents in Euromoney's annual trade finance survey are actually using new technologies.

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UK court changes law on debts under L/Cs

The UK's Supreme Court has allowed an appeal that has changed English law on the location of debts in the context of letters of credit (L/Cs).

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Bangladesh reports all-time high L/C openings

The value of letters of credit (L/Cs) opened in Bangladesh in November reached an all time high of US$16.33 billion according to Bangladesh Bank data.

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BBVA and Wave carry out first blockchain-based L/C transaction between Europe and Latin America

Multinational Spanish banking group BBVA, in collaboration with technology firm Wave, has carried out its first blockchain based letter of credit (L/C) transaction between Europe and Latin America.

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L/C support in Afreximbank's extensive new guarantee facility

The African Export-Import Bank (Afreximbank) has expanded its range of trade finance products by launching a new guarantee programme for letter of credit (L/C) and other financial instruments.

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Trade Bank of Iraq opens in Abu Dhabi

The bank established in 2003 with the initial purpose of providing letters of credit (L/Cs) to help Iraq rebuild its economy after the fall of Saddam Hussein's regime has opened a representative office in Abu Dhabi.

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Reserve Bank of Zimbabwe working on new L/C facility

The Reserve Bank of Zimbabwe (RBZ) is working on a new US$150 million letter of credit (L/C) to support key industries.

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Singapore's United Overseas Bank introduces robots to its L/C workforce

United Overseas Bank (UOB) has introduced two robots, Amy and Eve, to the bank's corporate and retail units.

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PDVSA's L/C woes worsen

Sanctions imposed by Washington on Venezuelan state-run oil company Petroleos de Venezuela S A (PDVSA) are continuing to affect its US refining unit, Citgo Petroleum.

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New L/C guarantee facility for African renewable power developers

The German development bank, KfW, and the African Trade Insurance Agency (ATI) have announced a new facility to support renewable energy projects in sub-Saharan Africa.

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Libya's L/C strategy falls short of objectives

Libya's strategy of using letters of credit (L/Cs) to stabilise exchange rates and curb inflation appears not to be achieving its objectives.

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Progress on Project Ubin's efforts to harness blockchain for L/C and other banking services

The Monetary Authority of Singapore (MAS), the city-state's de facto central bank, has released a new report focused on the second phase of its Project Ubin blockchain initiative.

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Indian businessman remanded in L/C fraud case

A businessman has been remanded in custody by Indian police on suspicion of involvement in a case involving a fraudulent letter of credit (L/C).

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Iran and Turkey scale up local currency L/C arrangements

Iran and Turkey have appointed banks to facilitate improved letter of credit (L/C) availability for bilateral transactions under their preferential trade agreement (PTA).

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L/C demand underlines credit growth in Bangladesh

Demand for letters of credit (L/Cs) is underlining substantial growth in private sector credit in Bangladesh.

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Demands for L/Cs a challenge smaller US wind power developers

Utilities in the US demanding letters of credit (L/Cs) from firms building wind power generators are proving a challenge for smaller developers according to an industry expert.

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Infrastructure developer employs L/C availability in marketing drive

One of the Philippines' largest infrastructure investment companies is employing letters of credit (L/Cs) in its drive to secure high-value toll road projects in Southeast Asia.

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Afreximbank president calls for more intra-African L/C business

The president of the African Export-Import Bank (Afreximbank) is calling on African banks to reduce their reliance on European counterparties in letter of credit (L/C) transactions.

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L/C issuing banks sought to help delayed Kenyan geothermal project

Commercial banks have been invited to submit proposals to act as the letter of credit (L/C) issuing bank for Kenyan geothermal power plants as part of the developers' efforts to make progress in a much delayed project.

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Accuity's financial crime screening for R3's L/C processing platform

Compliance software provider Accuity has partnered with financial innovation company R3 to integrate its financial crime screening tools with the Corda distributed ledger technology platform.

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CGI Group and three banks establish proof of concept for blockchain L/C processing

Information technology and business process services provider, CGI Group, along with the Bank of Montreal, Royal Bank of Canada, and Mitsubishi Financial Group say they have successfully completed a first-ever proof of concept (POC) that successfully demonstrated streamlined letter of credit (L/C) and other trade finance processes on a blockchain platform.

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African banks face additional L/C pressures

African banks wanting to write letter of credit (L/C) business will come under additional pressure next year with the introduction of International Financial Reporting Standard (IFRS) 9 in January.

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Political tensions restraining L/Cs for trade between Iran and the UAE

The unwillingness of the UAE's banks to write letter of credit (L/C) business for trade with Iran is a product of political tensions between the emirates and the Islamic Republic according to a senior Iranian business figure.

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Suppliers' insistence on L/C terms underlines concerns for old-established US department stores

Suppliers of Bon-Ton Stores are insisting on payment by L/C or cash on delivery as the US department store chain that opened its first outlet in 1898 struggles with debt.

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Suppliers' insistence on L/C terms underlines concerns for old-established US department stores

Suppliers of Bon-Ton Stores are insisting on payment by L/C or cash on delivery as the US department store chain that opened its first outlet in 1898 struggles with debt.

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Four banks sign up to IBM-led platform to replace paper-based L/Cs

Four major banks have joined a trade finance initiative that aims to provide a digital alternative to paper-based letters of credit (L/Cs) in trade finance transactions.

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R3 launches distributed ledger platform and teams up with Bolero

Software developer R3 has launched version 1.0 of its Corda distributed ledger platform that could be critical for the development of digital letters of credit (L/Cs) based on the system originally developed for crypto-currencies.

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Trade finance volumes down, but L/Cs performing well

Global trade finance revenues have reached a seven-year low, with a 5 per cent decline year-on-year for the first half of 2017 according to a recent report.

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Confusion over L/Cs adds to ferry muddle in Trinidad and Tobago

Confusion over the status of standby letters of credit (L/Cs) is complicating Trinidad and Tobago's efforts to strengthen its so-called sea bridge, the vessels that ferry passengers and goods between the two islands.

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Westpac New Zealand sues former executive who allegedly falsified information to obtain L/C facilities

Westpac New Zealand is suing a second former senior executive of Lane Walker Rudkin (LWR), the Christchurch based clothing company that controversially collapsed in 2009.

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Austrian and Danish banks to boost L/C availability for trade with Iran

Iran's Central Bank has announced that several Iranian banks have signed two separate financing deals with an Austrian and a Danish bank.

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Zimbabwean business leader calls for more central bank supported L/Cs for soybeans

The president of the Oil Expressers Association of Zimbabwe (OEAZ) is calling for more letters of credit (L/Cs) in support of soybean imports.

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Caution increasingly prompting East European suppliers to ask for L/C terms

A report by credit insurer Atradius reveals that despite a positive economic outlook, many Eastern European companies expect deteriorating payment practices amongst their business partners.

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Alliance with Kyriba to strengthen GTC's guarantee, L/C and documentary collection services

GlobalTrade Corporation (GTC), which provides a range of letter of credit (L/C) and other trade finance services, has forged an alliance with cloud-based treasury and financial management solutions provider, Kyriba.

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New sanctions on Venezuela impact on L/Cs for US refineries

Recent sanctions imposed by Washington on Venezuelan state-run oil company Petroleos de Venezuela S A (PDVSA) have started to affect its US refining unit, Citgo Petroleum.

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Mashreq establishes position in the Nepalese L/C market

Mashreq Bank of the UAE says it is providing extensive support for banks writing letter of credit (L/C) business in Nepal.

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China's credit rules driving steel mills away from L/C terms

China's increasingly stringent credit rules are driving smaller steel mills away from buying iron ore on letter of credit (L/C) terms.

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Brighter prospects in Egypt for L/C business

Egypt has cleared a multibillion-dollar backlog of foreign currency requests from importers and foreign companies since floating the pound in November 2016, according to a central bank official.

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Central Bank of Iran presents post-sanctions L/C growth

The Central Bank of Iran (CBI) has announced that the country's banks have engaged in foreign exchange transactions worth over US$38 billion since international (but not US) sanctions were lifted in January 2016 after the Islamic Republic scaled back its nuclear ambitions.

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Utility of blockchain in L/C transactions under challenge

Several blockchain-based proofs of concept (PoCs) and prototypes for letter of credit (L/C) processing have been announced over the last year.

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Dubai bankers accused of forging L/Cs

Three Dubai bankers have been accused of accepting US$10 million in bribes for forging letters of credit (L/Cs) attributed to their former employer, HSBC.

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Billion-dollar L/C for Iranian gas refinery

A US$1 billion letter of credit (L/C) from Bank Sepah is backing one of Iran's largest industrial projects.

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Tougher new US sanctions impact on L/C business

The US has signed into law the Countering America's Adversaries Through Sanctions Act (CAATSA).

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Rosneft steps in to buy Venezuelan oil as US banks remain reluctant to provide L/Cs

Russian oil firm Rosneft is apparently responding to the reluctance of US banks to extend letters of credit (L/Cs) for refiners awaiting shipments of Venezuelan crude oil from Petroleos de Venezuela S A (PDVSA).

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L/Cs feature in India's efforts to encourage solar power

Developers of solar power generation facilities in India will be able to reduce the risk of electricity off-takers not meeting their payment obligations by using letters of credit (L/Cs).

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Iran's Bank of Industry Mines expands correspondent network to support L/C business

Iran's Bank of Industry and Mines (BIM) considerably expanded its correspondent banking network in the last fiscal year to bolster its letter of credit (L/C) business according to the bank’s deputy for international affairs.

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L/Cs hard to come by for Chinese soybean traders

Singaporean importers of Chinese soybean are finding letters of credit (L/Cs) hard to come by due to adverse factors across the industry.

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Fraudster who promised high returns on L/Cs sentenced

A judge in the US state of North Carolina has sentenced a convicted fraudster to more than four years in prison for operating an investment fraud scheme.

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Tanker carrying Venezuelan crude stranded off US coast needs L/C to discharge crude

An oil tanker loaded with about one million barrels of Venezuelan crude has been stranded for more than a month off the coast of the US state of Louisiana because it lacks the letter of credit (L/C) required to discharge its cargo.

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Floods precipitate surge in L/Cs in Bangladesh

Devastating floods in Bangladesh have precipitated a surge in letter of credit (L/C) openings for imports of staple foods.

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UPS Capital announces L/C alternative payment service

UPS Capital has announced the launch of a new online business-to-business payment service that it claims offers a secure alternative to traditional letter of credit (L/C) payments.

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Dubai's position as Gulf financial hub in jeopardy after L/C disruption

Standard Chartered's CEO says Dubai risks jeopardising its position as the Gulf's banking hub as a result of the trade boycott of Qatar by a Saudi-led bloc that includes the UAE.

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Iran and Pakistan cooperate to boost L/C business

Iran and Pakistan’s largest banks are taking practical steps to boost letter of credit (L/C) business by opening branches in each other’s country according to the Central Bank of Iran (CBI).

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Banks collaborate on pilot for digital sight L/C

Eleven banks are collaborating on a prototype application for letter of credit (L/C) processing over a platform developed by financial innovation company R3, which leads a consortium of dozens of the world's largest financial institutions in the research and development of blockchain or distributed ledger solutions.

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Truck and bus manufacturer casts doubt on L/C future after BPO transaction

Commerzbank has processed the first Bank Payment Obligation (BPO) transaction in Austria.

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L/Cs may feature in Qatari bank's efforts to cut UAE exposure

A unit of Qatar's Doha Bank may be attempting to sell letters of credit (L/Cs) exposed to UAE local lenders amid continuing tensions in the Gulf.

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Russia and Saudi Arabia to forge closer L/C ties

Russian and Saudi officials are expected to meet later this year to forge a range of commercial cooperation agreements in the oil, gas and power sectors.

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CITIC Bank launches China's first blockchain L/C transaction

China-based CITIC Bank has launched what it claims to be the first ever letter of credit (L/C) system in the Chinese banking industry based on blockchain or distributed ledger technology.

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Indian property developer in US$400 million money laundering scheme faces new L/C fraud charges

India's Central Bureau of Investigation (CBI) has charged the director of Zoom Developers for letter of credit (L/C) and other frauds that caused substantial losses for Indian Overseas Bank.

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EIB's L/C enhancement helps groundbreaking new Italy-France power interconnection

The European Investment Bank (EIB) has used its new letter of credit (L/C) senior debt credit enhancement (SDCE) tool to support the financing of a major cross-border electricity interconnection for Italian state grid operator, Terna.

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Bangladesh eases requirements for L/Cs for rice imports

Bangladesh has eased requirements on letters of credit (L/Cs) opened for rice imports.

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L/Cs crucial for financial close on Texan wind farm

Letters of credit (L/Cs) have helped a very substantial wind power project in the US state of Texas reach financial close.

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Guernsey gears up for more L/Cs in Chinese captive insurance schemes

Guernsey has signed four Chinese insurance-related memoranda of understanding (MoU) since mid-2016, and the island's captive insurance market is starting to insure Chinese companies.

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Expired L/Cs add to Cuba's economic woes

Expired letters of credit (L/Cs) are contributing to Cuba's worsening financial crisis according to Cuban economy minister, Ricardo Cabrisas.

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Syria abandons L/Cs for wheat imports

Syria's state grain agency, Hoboob, is no longer opening letters of credit (L/Cs) for wheat imports according to state news agency Sana.

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Mizuho announces successful blockchain L/C experiment

Mizuho of Japan is one of the latest financial institutions to announce the results of an experimental blockchain letter of credit (L/C) transaction.

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Bank officials and telecoms entrepreneur face L/C fraud charges

India's Central Bureau of Investigation (CBI) has filed charges in a Mumbai court against a director of a Gujarat-based private telecoms company and several bank officials in a scam involving letters of credit (L/Cs).

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ICC report contemplates disappearance of L/Cs

The International Chamber of Commerce (ICC) Banking Commission has published its annual Global Survey on Trade Finance, which contemplates the "long-anticipated disappearance of the documentary letter of credit (L/C)."

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EIB provides guarantee facility for L/Cs issued by Greek banks

The European Investment Bank (EIB) has activated a second Trade and Export Finance (TEF2) guarantee facility for Greece.

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L/C hurdles eventually overcome as Iraq begins imports of Iranian gas

Difficulties arranging the letters of credit (L/Cs) needed for Iranian gas exports to start flowing to Iraq have been overcome.

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Traydstream launches new system for automated L/C checks

A new financial technology or 'fintech' company has launched a solution to check letters of credit (L/Cs) and other documents against industry rules and regulations.

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SMBC and IFC sign new US$1bn deal to improve L/C access in emerging markets

Sumitomo Mitsui Banking Corporation (SMBC) and the International Finance Corporation (IFC) have invested US$1 billion in the IFC's Global Trade Liquidity Programme (GTLP) with the aim of improving the flow of letters of credit (L/Cs) issued by banks in emerging markets.

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ICC launches working group on digitalisation of trade finance

The International Chamber of Commerce (ICC) Banking Commission has launched a working group to coordinate work towards the digitalisation of trade finance.

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Banks demand fully funded L/Cs from Zimbabwe

Foreign banks are insisting that Zimbabwean importers arrange fully funded letters of credit (L/Cs) from domestic banks due to the country's worsening foreign currency crisis.

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Sears files lawsuit to counter claims it cannot meet its L/C obligations

Sears, the US retailer currently embarked on a turnaround strategy, has sued a supplier for demanding what the retailer says are unjustified changes to their supply contract.

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Trafigura's deal with Wonfull Petrochemical overcomes Iranian L/C hurdle

China's Wonfull Petrochemical has bought a cargo of Iranian crude on a spot basis from Trafigura, in a deal that overcomes the hurdle of sanctions preventing banks from opening letters of credit (L/Cs) for deals with Iran.

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Trade finance between Hong Kong and China waning

Letter of credit (L/C) business between Hong Kong and China is waning due to capital controls introduced by Beijing as it endeavours to stem the flow of cash out of the country.

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India unearths L/C fraud at private company and Canara Bank

India's Central Bureau of Investigation (CBI) has arrested a director of a New Delhi based private company and another person in a case relating to an alleged US$3.45 million fraud involving Canara Bank.

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Banks in Singapore and Japan to improve L/C availability for small firms

Singapore-based DBS Bank and Nishi-Nippon City Bank (NCB) of Japan have signed a memorandum of understanding (MoU) to foster greater collaboration and support for Japanese small- and medium-sized enterprises (SMEs) in Asia.

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Saudi Arabia orders banks not to increase L/C exposure to Qatari clients

In a directive that includes letters of credit (L/Cs), Saudi Arabia's central bank has ordered the country's lenders not to increase their trade finance exposure to any Qatari clients.

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Sberbank announces successful blockchain L/C transactions

Russia's largest bank, Sberbank, says it has successfully used blockchain technology to conduct international letter of credit (L/C) transactions for the Russian steel and mining company, Severstal.

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Egyptian banks halt dealings with Qatar, but spare L/C business

Some Egyptian banks have halted dealings with Qatari banks but they are continuing to open import letters of credit (L/Cs), four Cairo-based bankers have told the Reuters news agency.

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First bank in Fiji signs up to ADB's Trade Finance Programme

Fiji's Home Finance Company Bank (HFC Bank) has signed two trade finance agreements with the Asian Development Bank (ADB) aimed at improving its access to letters of credit (L/Cs) and other trade finance offerings.

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Blockchain reduces L/C processing time by 20-30 days

India's Kotak Mahindra Bank says it has used blockchain technology to reduce the time taken for a letter of credit (L/C) transaction from 20-30 days to just a few hours.

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ICC calls for UN action to keep L/Cs flowing across the trade finance gap

The International Chamber of Commerce (ICC) is calling on the United Nations (UN) to address a rapidly increasing trade finance gap.

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Smuggling encouraged by L/C costs

Costly letters of credit (L/Cs) feature in a range of circumstances forcing Bangladesh's jewellery makers to become heavily dependent on smuggled gold according to industry sources.

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Telecom entrepreneur used L/Cs to pull off loan scam

India's Central Bureau of Investigation (CBI) has arrested the promoter of a telecom company in connection with a US$19 million loan scam case.

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Calls to eliminate L/Cs in Ghana's oil market

The operations and marketing manager of one of Ghana's major oil marketing and retailing companies, Goenergy, says he wants to stop paying for products on letter of credit (L/C) terms.

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L/C abuse prompts Nigeria to advocate escrow accounts for electricity distributors

Nigeria's minister of power, works and housing, Babatunde Fashola, has said that the Nigerian Electricity Regulatory Commission (NERC) wants the accounts of and revenues generated by the country's 11 electricity distribution companies to be centralised and escrowed to protect the power sector from collapsing.

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Fraudsters fail to deliver valuable standby L/C

Four people have been charged in the US state of New Jersey in connection with a fraud that promised a gold dealer a valuable standby letter of credit (L/C) to fund its imports.

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Transport strike in Pakistan jeopardising L/C transactions

A strike by goods transporters in Pakistan is jeopardising letter of credit (L/C) transactions and spiking prices according to business leaders there.

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New L/C and trade mechanisms for Pakistan and Iran

The State Bank of Pakistan (SBP) has introduced a new mechanism for letter of credit (L/C) transactions between Iran and Pakistan.

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Access to L/Cs for Oman's SMEs set to improve

The Central Bank of Oman (CBO) has issued an order to commercial banks that may improve the flow of letters of credit (L/Cs) to Oman's small- and medium-sized enterprises (SMEs).

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Early L/C settlements helping robust credit growth in Bangladesh

Businesses in Bangladesh are settling letters of credit (L/Cs) in order to take advantage of the strength of the taka against the US dollar.

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Bank of America reveals progress on Microsoft blockchain L/C application

Bank of America has revealed progress on a blockchain application designed in association with Microsoft that automates the process of managing standby letters of credit (L/Cs).

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Pressure mounting on Ethiopian private banks writing L/C business

Pressure is mounting on private banks writing letter of credit (L/C) business in Ethiopia as the country continues to suffer, in general, a lack of foreign exchange.

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Ukraine eases L/C requirements once more

The National Bank of Ukraine (NBU) has responded to more pressure from international traders to further ease the requirement for letters of credit (L/Cs) to be used for imports.

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L/C processing and trade finance feature in major Russian blockchain conference

Letter of credit (L/C) and trade finance applications using blockchain or distributed ledger technologies featured prominently at a recent conference dedicated to blockchain and cryptocurrencies.

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Trade settlement mechanism will allow Pakistan and Iran to write L/C business

State Bank of Pakistan (SBP) and Bank Markazi Jomhouri Islami Iran (BMJII) have signed an agreement to provide a trade settlement mechanism between Pakistan and Iran.

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AfDB approves US$450 million L/C package for Afreximbank

The African Development Bank (AfDB) has approved a US$450 million trade finance package for the African Export-Import Bank (Afreximbank).

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Maltese manufacturers say obtaining L/Cs is the most difficult aspect of trade finance

Obtaining letters of credit (L/Cs) is the most common problem in trade finance faced by Maltese manufacturers according to a recent study by Trade Malta.

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More confirmation of improved Egyptian L/C flows

Egypt's banks are opening increasingly more letters of credit (L/Cs) for petroleum products according to a recent report published by the Central Bank of Egypt (CBE).

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Fake standby L/Cs allegedly used in US wire fraud

A jury in the US has indicted two men and a woman resident in the San Francisco Bay area on charges of wire fraud and wire fraud conspiracy.

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Russia's L/C roller coaster

There appear to have been significant shifts in the dynamics of letter of credit (L/C) business with and within Russia since its 2014 annexation of Crimea and the subsequent imposition of EU and US sanctions.

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Several banks duped in Indian L/C fraud

India's Central Bureau of Investigation (CBI) has filed suits against two Mumbai based jewellery dealers who may have conspired with bank officials to cause losses of around US$230 million to several banks.

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North Africa Bank under investigation for L/C irregularities

North Africa Bank's Zliten branch is to be investigated by Libya's Administrative Control Authority (ACA) over claims of financial irregularities.

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Trafigura and Natixis test blockchain technology to ease L/C transaction process

Commodities trading house Trafigura and French bank Natixis are testing blockchain or distributed ledger technologies as an alternative settlement system to conventional letters of credit (L/Cs).

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Chinese banks restricting L/Cs for imports of South Korean chemicals

A South Korean chemical company has complained that Chinese banks are refusing to open letters of credit (L/Cs) for buyers of its products.

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Westinghouse Chapter 11 refinancing features new L/Cs

Westinghouse Electric Co on 29 March 2017 filed for Chapter 11 protection from creditors to enable strategic restructuring amid "financial and construction challenges" in its US nuclear power plant projects.

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Libya insists on L/Cs for oil purchases amid concerns about black market trading

Libya is insisting that only authorised companies can buy its crude oil, which must be purchased on letter of credit (L/C) terms according to a statement issued by the National Oil Corporation (NOC).

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Pramod Mittal facing charges for L/C conspiracy

Pramod Mittal, the former Chairman of Global Steel Holdings Limited (GHSL) and younger brother of steel tycoon Lakshmi Mittal, is facing charges brought by India's Central Bureau of Intelligence (CBI) for allegedly defaulting on credit re-payments to the State Trading Corporation (STC).

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Georgia eyes L/Cs for nuclear power station compensation

Municipal Electric Authority of Georgia (MEAG) is eyeing letters of credit (L/Cs) as compensation should Westinghouse Electric Co fail to deliver to the authority a nuclear power plant it is building.

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New forged storage certificate scam to hamper access to L/Cs for commodities traders

Letters of credit (L/Cs) may prove even harder to obtain for commodities traders as a new scandal involving forged storage certificates emerges.

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Renewed criticism as Ethiopia's L/C shortage continues

Ethiopian business leaders have renewed criticism of their government for failing to address the longstanding issue of letter of credit (L/C) shortages due to a lack of foreign exchange.

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Abu Dhabi Islamic Bank launches Shari'ah-compliant Islamic L/C offering

Abu Dhabi Islamic Bank (ADIB) has launched a new Shari'ah-compliant letter of credit (L/C) financing offering.

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Calls to lift cash margin from L/Cs for knocked down vehicles

The Pakistan Automotive Manufacturers Association (PAMA) is calling on the finance ministry to abolish the cash margin requirement for letters of credit (L/Cs) opened for imports of completely knocked down (CKD) vehicles.

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Forged L/Cs used to siphon funds from Punjab's public works department

India's Enforcement Directorate (ED) has unearthed records of high-end properties belonging to three officials of Punjab's public works department and allegedly purchased with money siphoned from state funds.

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Increased L/C flows expected under Afreximbank's strategic plan

Flows of letters of credit (L/Cs) are expected to increase under the African Export-Import Bank's (Afreximbank's) recently unveiled five-year strategic plan.

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L/C decline reflects sluggish Saudi economy

A substantial decline in letter of credit (L/C) openings has underlined how Saudi Arabia's economy is still struggling to gain momentum amidst low oil prices.

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Ukraine's energy utility issued L/Cs under new World Bank guaranteed loan agreement

Ukraine's national energy company, Naftogaz, has been issued its first tranche of letters of credit (L/Cs) as part of a US$500 million loan.

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Chinese companies no longer need L/Cs or 'keep well' agreements to tap foreign lenders

Letters of credit (L/Cs) or 'keep well' agreements will no longer be needed for Chinese companies looking to tap foreign lenders.

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Axis Bank providing L/Cs and guarantees to support Indian startups

Indian banks are reportedly extending more credit to Indian technology startups that have until recently found it difficult to obtain bank support.

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Former Gambian president used L/Cs to channel foundation's funds to himself

Funds from a US dollar bank account in the name of the Jammeh Foundation for Peace, a charity founded by Gambia's former president Yahya Jammeh, flowed to Jammeh himself, not to foundation projects, according to the Reuters news agency.

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L/Cs feature in Indian manufacturer's alleged conspiracy

A lawsuit has been filed against an Indian electrical equipment manufacturer that used letters of credit (L/Cs) in an alleged conspiracy that cheated Andhra Bank out of some US$10.7 million.

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Nigeria moves to improve overall L/C availability

The Central Bank of Nigeria (CBN) has issued its New Policy Actions in the Foreign Exchange Market.

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Nepalese L/C business set to boom as trade blockade with India is lifted

Increased letter of credit (L/C) business looks likely to help an anticipated surge in profits at Nepal's commercial banks.

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L/C functionality in IBM's blockchain solution for imports and re-exports of goods through Dubai

Dubai's government has launched an initiative to test blockchain technology for trade finance in partnership with IBM.

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Libya imposes 100 per cent customs duty on L/C imports

Libya's Presidential Council and Government of National Accord (PC/GNA) have issued a decree imposing a new unified customs duty of 100 per cent on almost all imports transacted on letter of credit (L/C) terms.

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Credit Suisse secures Caribbean market position providing L/Cs for captive insurers

Credit Suisse has established itself as a leading provider to the Caribbean's captive insurance sector, providing letters of credit (L/Cs) worth US$2.5 billion.

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Bank Misr confirms improved Egyptian L/C flows

Egypt's second biggest bank, state-owned Banque Misr, has opened letters of credit (L/Cs) worth around US$2.05 billion to meet import payments since last year's local currency flotation, according to vice chairman, Akef El Maghraby.

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L/C required to back Libya's power generation expansion

A leading engineering, procurement and construction (EPC) group based in Greece says it has signed a US$380 million contract with the interim Libyan authorities to construct a power plant in Tobruk.

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Banks collaborate on blockchain L/C alternative for SMEs

Seven large banks are collaborating on a blockchain-based trade finance and supply chain platform aimed at small- and medium-enterprises (SMEs) that find letters of credit (L/Cs) unsuitable for their business needs.

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New online L/C service from DBS Bank for Singaporean SMEs

Singapore's DBS Bank has launched a new service that allows small- and medium-sized enterprises (SMEs) to apply for letters of credit (L/C) online in the space of five minutes.

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Conflicting messages on Nigerian L/C availability for manufacturers

The Central Bank of Nigeria (CBN) says it is committed to ensuring that key manufacturing firms are able to obtain the letters of credit (L/Cs) they need to import the materials required for their businesses.

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Quarry operator must put up L/C to lift suspension

A quarry operator in the Canadian province of British Columbia has been told it must put up a letter of credit (L/C) to guarantee its environmental remediation obligations if it wants to resume operations.

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Iran optimistic about normalised L/C business by March

Iran expects banking relations with the rest of the world to improve by the end of its current fiscal year in March according to deputy for international affairs at the Iran Chamber of Commerce, Industries, Mines and Agriculture, Mohammad Reza Karbasi.

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Bank of China signs up for Bolero's electronic trade document platform

Bank of China (BOC) has become the first of China's 'Big Four' banks to offer exporters the use of Bolero's online electronic trade document platform.

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L/Cs used in multi-million euro money smuggling out of Libya

The Libyan authorities have accused 23 companies located across the world of smuggling millions of euro out of Libya.

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L/Cs required for Iran-Iraq gas sales

Difficulties obtaining appropriate letters of credit (L/Cs) need to be overcome before Iraq can buy gas from Iran according to the Iranian deputy oil minister.

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National Bank of Egypt confirms L/C recovery and anticipates economic recovery

The National Bank of Egypt (NBE) has financed import operations worth US$4.3 billion since the decision to float the Egyptian pound on 3 November 2016 until 18 January 2017 according to the bank's vice president, Yehia Abu ElFotouh.

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Commentators agree with court judgment on PetroSaudi's L/C validity

Commentators appear to agree in general with that the judgment of a UK court that PetroSaudi had no claim to US$130 million under a standby letter of credit (L/C) which stipulated that the Venezuelan government must pay the company, whether or not there were disputes to be settled.

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Russia reports first blockchain L/C transaction

Two Russian entities, S7 Airlines and Alfa-Bank, have completed and settled a letter of credit (L/C) transaction using blockchain or distributed ledger technology.

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L/C shortage contributes to sharp decline in Nigerian manufacturing activity

Nigeria's manufacturing sector performed dismally in 2016 according to data released by the Central Bank of Nigeria (CBN)

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Indian interest in L/C and trade finance applications for blockchain technologies

Stakeholders in India's banking and financial services sectors are looking closely at ways blockchain or distributed ledger technologies can be used in letter of credit (L/C) and other trade finance applications.

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L/Cs a key feature in Sears' financial rescue package

Letters of credit (L/Cs) are an integral part of hedge fund manager Edward Lampert's financial rescue package for struggling US retailer, Sears Holdings.

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Demonetisation stoking Indian demand for L/Cs

India's so-called demonetisation - the withdrawal from circulation of 500 and 1,000 rupee notes - appears to have precipitated increased interest in letter of credit (L/C) transactions.

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Libya's ban on sale of L/C subsidised goods to Tunisia provokes border protests

Tunisians living on the border with Libya are blocking the road and preventing travellers crossing from one country to the other.

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Fake L/Cs feature in Indian bank scam

India's Enforcement Directorate has seized assets worth around US$19.3 million deemed to be associated with a major organised fraud at Syndicate Bank.

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Ethiopian bank's falling profits due to L/C and telegraphic transfer mismanagement

Plummeting profits at the Cooperative Bank of Oromia (CBO) are a result of mismanagement of the bank's letter of credit (L/C) and telegraphic transfer operations.

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No L/Cs for wheat edging Yemen closer to famine

Yemen's major wheat importers have said they are now unable to import wheat because letters of credit (L/Cs) can no longer be obtained amid a crisis at the Central Bank of Yemen (CBY), documents seen by news agency Reuters show.

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US education authorities intensifying L/C pressures on for-profit colleges

Education authorities in the US are intensifying their use of letters of credit (L/Cs) in their efforts to ensure that for-profit education companies that are state funded deliver adequate services.

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