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

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

Read More

February issue of Documentary Credit World

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

January issue of Documentary Credit World

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Questions raised over banks' L/C procedures and misuse of SWIFT in US$2 billion PNB fraud

The US$2 billion letter of credit (L/C) and letter of undertaking (LoU) fraud at Punjab National Bank (PNB) has raised questions about the auditing and regulatory oversight of India's banks according to Reuters.

Read More

Latest Digital Commercialisation Briefings

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Latest Technical Advisory Briefing

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

Read More

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

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

Read More

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

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

Read More

RA Investments announces standby L/C provision and monetisation offerings

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

Read More

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

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

Read More

Moscow and Tehran maintain pressure for BRICS alternative to SWIFT

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

Read More

L/Cs could help Trump through appeal process

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Libyan bank officials and customs officers jailed for L/C fraud offences

Libya's attorney general's office says it has jailed several bankers employed by Tripoli-based Al-Yaqeen Bank as well as customs officials at the Libyan-Tunisian Ras Jadair border crossing for their involvement in letter of credit (L/C) frauds amounting to the equivalent of at least US$250 million.

Read More

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

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

Read More

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

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

Read More

Irish court finds 'no seriously arguable' case of fraud and rejects application for injunctive relief

The Irish High Court has rejected an application for injunctive relief by a Nigerian infrastructure fund, First Modular Gas Systems, in a ruling that underscores the demanding criteria for successfully obtaining an injunction to halt payment under a letter of credit (L/C).

Read More

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

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

Read More

L/C confirmation market set for growth says new research

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

New Opinions from the ICC Banking Commission

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

Read More

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

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

Read More

Mitech and Tesselate partner to accelerate trade finance digitisation

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Blockchain L/C prospects in 2024

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

Read More

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

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

Read More

New Alternative Letter of Credit facility launched for casualty insurance programmes

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

BAFT publishes new guidelines to stem correspondent banking decline

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

Read More

Latest Technical Advisory Briefing

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Annual Survey of Letter of Credit Law and Practice

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Creditors and banks await WeWork restructuring

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

New Opinions from the ICC Banking Commission

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

Read More

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

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

Read More

Contour trade finance platform to terminate operations

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

Read More

India's banks contemplate new blockchain trade finance platform

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Currency diversification continues with StanChart's BDT-INR transaction

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Entities possibly linked with fraudulent Vesttoo L/C scandal named

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

Read More

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

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

Read More

DBS and ICICI participate in first international shipment using TradeTrust blockchain

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Fraudsters sentenced for fraudulently obtaining L/Cs

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

Read More

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

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

Read More

MUFG joins Contour's digital L/C network

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

UAE and India sign agreements to facilitate domestic currency trading

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

ISBP 821 now published in the Digital Library

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

Read More

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

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

Read More

eUCP 2.1 and eURC 1.1 rules published in the Digital Library

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

Read More

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

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

Read More

ICC releases eUCP Version 2.1 to align with MLETR

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Santander invests in digital trade platform Komgo

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Digital Commercialisation Briefings

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

L/Cs and document collection can protect against TBML

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

Read More

L/Cs feature in awards for Ukrgasbank and EBRD

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

Read More

Annual Survey of Letter of Credit Law and Practice

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Sri Lanka scraps cash margin on import L/Cs

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

Read More

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

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

Read More

Awards recognise Contour's blockchain L/C progress

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

Read More

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

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

Read More

Trade Technologies announces production release of TradeBridgeAPI Bank

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

Read More

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

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

Read More

New Opinion from the ICC Banking Commission

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Lack of L/Cs halts vehicle production in Pakistan

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

Read More

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

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

Read More

AfDB continues rollout of trade finance transaction guarantee facility

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

Read More

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

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

Read More

ICC publishes best practice guidance for documentary credits

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Annual Survey of Letter of Credit Law and Practice

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Developments at Silicon Valley Bank and L/Cs

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

Read More

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

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

Read More

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

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

Read More

AerCap recoups most L/C proceeds related to Ukraine conflict

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

Read More

Contour sets sight on Chinese commodity flows in partnership with TradeGo

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

Read More

ICC Guidance Papers

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Annual Survey of Letter of Credit Law and Practice

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

Read More

ICC publishes four guidance papers on documentary credit usage

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Pakistan's internet rollout stalled by L/C difficulties

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Egypt easing controversial L/C restrictions

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Inflation driving captive insurers away from L/Cs towards trusts

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Lack of L/Cs forces Pakistan to delay national census

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

Read More

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

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

Read More

ICC Standards for Sustainable Trade and Sustainable Trade Finance

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Ship recycling market hampered by L/C difficulties

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Ethiopia bans import L/Cs for selected items

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

US commerce department faces criticism over L/C guarantee demands

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

Read More

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

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

Read More

RBI approves blockchain-based cross-border payment systems

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Arkansas internet service providers object to L/C guarantee demands

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

Read More

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

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

Read More

Aquila acquires Cibar to extend its international trade finance reach

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

Read More

Standby L/Cs preferred collateral choice for captive insurance companies

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Deutsche Bank partners with Traydstream to automate document checking

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Sberbank added to EU sanctions list

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Bangladesh introduces measures to improve L/C availability

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

Read More

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

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

Read More

Pan-African Ecobank reports surge in L/C business

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

WiseTech buys Bolero to progress trade digitisation and extend global reach

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

TBML relies on lack of L/C understanding says LexisNexis

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

Read More

Blockchain fintech we.trade files for insolvency

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Surecomp launches Rivo to connect digital trade finance systems

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Innovative renewable financing bundles L/C and equipment financing

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

L/C examination reveals phantom shipment scam

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

Read More

Sri Lanka finds ways to import oil without L/Cs

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Sanctions advisories for the maritime industry

Practical challenges and recommendations for financial

Read More

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

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

Read More

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

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

Read More

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

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

Read More

First sustainable L/C for HSBC Philippines

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

Read More

ICC Standards for Sustainable Trade and Sustainable Trade Finance

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Egypt set to introduce controversial L/C requirement for importers

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Trade Technologies brings digital L/C solutions to Dubai

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

Read More

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

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

Read More

Innovative L/C business helps banks win Global Finance awards

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Indian banks cautious on Sri Lankan L/C exposures

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Sri Lanka prepares to settle fertiliser dispute with China

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

Read More

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

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

Read More

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

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

Read More

OFAC imposes restrictions on L/Cs for Belarus sovereign debt

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

Read More

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

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

Read More

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

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

Read More

Alleged Kolkota-based L/C fraudsters' assets attached

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Mining and metals blockchain platform Minehub launches trade finance application

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

Controversial US power producer announces green L/C facility

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

iGBT awarded SWIFT Compatible Application Trade Finance Label for 2021

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

Read More

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

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

Read More

Former SBAC Bank chairman accused of ignoring L/C regulations

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

Read More

Green L/Cs a step closer for Standard Chartered

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

Read More

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

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

Read More

Saudi Eximbank and ICIEC sign two L/C reinsurance agreements

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

L/Cs help several banks win transaction banking awards

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

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

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

Read More

CBA readies clients for Swift Release 2021 upgrading messages for guarantees and standby L/Cs

Norwegian software vendor Commercial Banking Applications (CBA) says it has shipped the latest annual release of its IBAS GBF (Global Banking Factory) software to all customers over three months ahead of schedule, allowing additional time for testing in advance of the upcoming transition to SWIFT Release 2021 in November this year.

Read More

L/C familiarity will help manufacturers and small businesses participate in AfCFTA

Training to become familiar with processing letters of credit (L/Cs) and other payment types are amongst the steps local manufacturers and small business owners can take to increase participation in the African Continental Free Trade Area Agreement (AfCFTA) according to the Manufacturers Association of Nigeria (MAN).

Read More

US department of education accused of planning to close law school while retaining L/Cs

Florida Coastal School of Law (FCSL) has filed a lawsuit against the US department of education for denying the school access to the federal student loan programme that it needs to operate.

Read More

L/C delays partially to blame for Ghana's vaccine controversy

Delays in processing letters of credit (L/C) have been partially blamed for the failure of a controversial contract under which Ghana intended to purchase hundreds of thousands of doses of the Russian-made Sputnik V coronavirus vaccine via a minor Dubai royal family member.

Read More

Uzpromstroybank signs up to GTFP for L/C guarantees and more

Uzbekistan's largest lender, Uzpromstroybank, has become a participant in the International Finance Corporation's (IFC's) Global Trade Finance Programme (GTFP) under which the World Bank Group member will guarantee letters of credit (L/Cs) and other trade finance instruments.

Read More

UK's development finance institution announces US$30 million L/C support for Bangladesh

The UK's development finance institution, CDC Group, has announced a US$30 million trade finance loan to City Bank in Bangladesh that aims to help facilitate trade finance through usance paid at sight (UPAS) letters of credit (L/Cs).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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).

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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).

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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).

Read More

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

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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).

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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).

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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).

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More