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G+D launches Smart Label as a replacement for L/Cs in trade payment solutions

Giesecke+Devrient (G+D), a long-established German security firm says it has developed an 'internet of things' (IoT) solution that integrates with external trade payment solutions and can replace letters of credit (L/Cs).

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Innovative EDC facility allows renewables developer to issue L/Cs with no cash collateral

A North American owner, operator and developer of renewable energy projects, Revolve Renewable Power, has secured an innovative facility from Export Development Canada (EDC) that will allow it to issue letters of credit (L/Cs) without putting up cash collateral.

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African fintech Breeze says its solution will revolutionise L/C processing

African fintech Breeze has announced that it has developed a digital platform that it claims will revolutionise letter of credit (L/C) processing.

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ContourGlobal's refinancing underscores increasing use of Debt Service Reserve L/Cs in green financing

ContourGlobal, an independent power producer with a diversified global presence, has closed its US$612 million refinancing of a 1,205 megawatt portfolio of natural gas power plants located in California, New Mexico and Texas.

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Nigeria and China renew currency swap agreement that facilitates yuan-denominated L/Cs

Nigeria and China have renewed their bilateral currency swap agreement (BCSA) that was originally agreed in April 2018 and which enables the exchange of 15 billion yuan (US$2 billion).

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Nigeria's naira-for-crude policy reducing demand for international L/Cs as petrol prices fall

The new Dangote Petroleum Refinery near Lagos in Nigeria has reduced the ex-depot price of a litre of petrol to 899.5 naira (N899.50 - 58 US cents) down from the previous rate of N970.

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L/Cs misused used in Transstory's US$5.9 million loan scam

India's Enforcement Directorate (ED) has provisionally attached land parcels and residential properties valued at approximately 48.71 crore rupees (Rs48.71 - US$5.9 million) belonging to Transstroy (India) in a case involving the misuse of letters of credit (L/Cs).

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Russian grain exporters tell Egyptian buyer they would prefer to continue doing business on L/C terms

Egypt's new commodities importer has asked Russian grain exporters to come up with ways to reduce transaction costs on wheat deals, according to Dubai-based publication Asharq Business.

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Favourable L/C terms part of Woori Bank's package to help South Korean exporters overcome forex crisis

South Korea's Woori Bank is providing more favourable letter of credit (L/C) terms in its 500 billion won (US$343 million) financial support package designed to help Korean importers and exporters overcome the country's foreign exchange crisis.

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Beximco workers form 10-kilometre human chain to demand that L/Cs are resumed and factories reopened

Approximately 40,000 workers from 16 closed factories of the Beximco Group formed a 10-kilometre long human chain this week along a major highway in Bangladesh in a protest demanding the resumption of letters of credit (L/Cs) and the reopening of factories.

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Failure to use L/Cs or similar safeguards behind investigation into trader's advance payments for US$400 of undelivered oil

The former CEO of Orlen Trading Switzerland (OTS), referred to as 'Samer A' due to privacy laws, is under investigation for authorising advance payments totalling approximately US$400 million for oil deliveries that were never fulfilled.

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Reduced L/C reliance helps boost Lloyd's of London earnings

Reduced reliance on letters of credit (L/Cs) has contributed to strong earnings at Lloyd's of London in the first half of 2024 according to a report published by Moody's Ratings.

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High Court of Australia declines to intervene in dispute involving A$37 million standby L/C

The High Court of Australia has declined to intervene in the case concerning an abandoned 185 million Australian dollar (A$185 million - US$115 million) property development in Gosford, New South Wales.

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African banks' closer links to China stimulating yuan-denominated L/C business

African banks are increasingly engaging with China to facilitate trade and investment, focusing on establishing operations in China and promoting yuan-denominated letters of credit (L/Cs) and other financial instruments.

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New Opinions from the ICC Banking Commission

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

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Insurer takes legal action against China Construction Bank in Vesttoo US$4 billion insurance fraud

Clear Blue Insurance Group has initiated legal action against China Construction Bank (CCB) in response to the multi-million dollar fraud involving fraudulent letters of credit (L/Cs) provided as reinsurance collateral through the insurtech platform, Vesttoo.

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Trader used fraudulent L/C and shipped soil, gravel and stones instead of chromite ore to con Chinese company

Pakistan's Federal Investigation Agency (FIA) has arrested a local businessman who used a fraudulent letter of credit (L/C) in a scheme that allegedly conned a Chinese company out of 115 million Pakistani rupees (Rs115 million - US$414,000).

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Unsuccessful attempts to obtain court injunctions against drawing on L/Cs highlighted in new ABA report

A survey published by the American Bar Association (ABA) highlights the most important developments of 2023 dealing with letters of credit (L/Cs), domestic and international sales of goods, personal property leases, payments, documents of title, investment securities, and secured transactions.

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US$1.1 billion L/C facility helps McDermott International restructuring win ABI's International Matter of the Year

The American Bankruptcy Institute's (ABI's) International Committee has recognised the financial restructuring of McDermott International as its 2024 "International Matter of the Year."

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South Korea's Shinhan Bank eases L/C terms in response to currency weaknesses

South Korea's Shinhan Bank has responded to the weakening of the won and volatile economic conditions by extending the maturity of letters of credit (L/Cs) and providing additional funding for businesses paying for L/Cs.

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L/Cs feature in AfDB's EUR 15 million transaction guarantee facility for Bank of Africa Benin

The African Development Bank (AfDB) has agreed to provide Bank of Africa Benin (BAB) a EUR 15 million (US$15.7 million) transaction guarantee facility to support imports of supplies and telecommunications equipment for local businesses and small- and medium-sized enterprises (SMEs).

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Trader used L/Cs in multi-million dollar chrome ore export fraud

A Pakistani trader allegedly used false documents to fraudulently obtain letters of credit (L/Cs) that helped him perpetrate a multi-million US dollar chrome ore export fraud.

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QIIB launches Qatar's first digital L/C platform

Qatar International Islamic Bank (QIIB) has announced the launch of its digital letter of credit (L/C) platform that eliminates the need for customers to visit the bank.

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Founder of Singaporean oil trader Hin Leong brought down by L/C fraud jailed for 17-and-a-half years

OK Lim, the founder of collapsed Singapore-based oil trader Hin Leong, has been jailed for 17-and-a-half years for defrauding the firm's principal creditor, HSBC, and abetting forgery.

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UK to provide US$150 million trade finance facility for Absa Group, and US$350 million for StanChart to support African and Asian businesses

The UK's development finance institution and impact investor, British International Investment (BII), has extended a US$150 million trade finance facility to Absa Group that aims to narrow Africa's trade finance gap and support businesses across the continent.

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Afreximbank's L/Cs for Nigerian EPC specialist aims to help close Africa's infrastructure funding gap

The African Export-Import Bank (Afreximbank) has agreed to provide a US$10 million-dollar revolving trade finance facility to Dorman Long Engineering (DLE) to facilitate the importation of steel pipes for threading.

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Standby L/Cs backed by JFC to help Japanese SMEs work with DBS to expand into multiple Asian markets

Singapore headquartered DBS Bank and Japan Finance Corporation (JFC), a financial institution (FI) wholly owned by the Japanese government that complements private FIs by providing policy-based financing, have signed a memorandum of understanding to support the Asian regionalisation of Japanese small and medium-sized enterprises (SMEs).

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AfDB facility with L/C support for Ecobank Centrafrique

The African Development Bank (AfDB) has approved a EUR 5 million (US$5.3 million) trade finance transaction guarantee facility for Ecobank Centrafrique, the subsidiary of the Togo-based Ecobank Group that operates in the Central African Republic (CAR).

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Suzano Asia recognised for cutting-edge digital trade transactions with L/C potential

Trade documents including letters of credit (L/Cs) bills of lading, and invoices have been digitised in international transactions executed by Suzano Asia, the Asian subsidiary of Suzano, a leading Brazilian company specialising in the production of eucalyptus pulp and paper products.

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Pakistan's Meezan Bank to partner with ITFC for its L/C confirmation facility

Meezan Bank, one of Pakistan's first and largest Islamic commercial banks, has announced a new strategic partnership with the International Islamic Trade Finance Corporation (ITFC) under its letter of credit (L/C) confirmation facility.

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Mizuho and BNY launch correspondent banking network to boost L/C efficiency

Mizuho Bank and Bank of New York Mellon (BNY) and have jointly announced a landmark collaboration agreement for enhanced correspondent bank network connectivity for international trade.

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Kenyan government shifts policy on L/Cs for Gulf oil imports on IMF recommendations

The International Monetary Fund (IMF) has expressed concerns regarding Kenya's government-to-government oil import arrangement, initiated in April 2023, with Gulf oil producers, including Saudi Aramco, Abu Dhabi National Oil Company, and Dubai's Emirates National Oil Company.

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Egypt reportedly orders banks to allocate US dollar L/Cs for some non-essential imports

The Central Bank of Egypt (CBE) has reportedly issued a directive ordering the country's banks to allocate US dollars for letters of credit (L/C) to be used for the importation of non-essential goods requiring pre-approval.

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J P Morgan takes a look at L/C history over the last 5000 years

Letters of credit (L/Cs) and promissory notes on clay tablets discovered 5000 years ago are the oldest known forms of trade finance, according to a visual timeline of international trade finance posted on J P Morgan's official web site.

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CTBC asks Hong Kong court to or ICBC to pay sum under negotiated L/C

Industrial and Commercial Bank of China (ICBC) and Taiwan's CTBC Bank have filed competing legal claims over a US$8.8 million financing for a shipment of Venezuelan petroleum coke that is mired in allegations of fraud.

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Acconto's new lease deposit financing promises L/C alternative for SME tenant businesses

Boutique lender Acconto Financial Corporation (AFC) says it is promoting its new specialty loan offering to Canada's small- and medium-sized enterprises (SMEs) that provides an alternative to letters of credit (L/CS) and financial guarantees to cover tenants' commercial lease deposit obligations.

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Latest Technical Advisory Briefing

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

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Bangladesh's state power company partially settles Adani Power's L/C request

The Bangladesh Power Development Board (BPDB) has reportedly issued a letter of credit (L/C) for the equivalent of US$173 million to partially settle its debts to India's Adani Power.

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BIS launches Project Aperta to facilitate L/C and other trade financing flows

The Bank for International Settlements (BIS) is launching Project Aperta to explore how to reduce frictions and costs in global finance by enabling seamless cross-border data portability.

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World's largest debt conversion for river and watershed conservation features L/C from CAF

JPMorgan Chase & Co has successfully closed a landmark US$1 billion refinancing deal for El Salvador, which represents approximately 14 per cent of the nation's total debt of approximately US$21 billion or 59 per cent of its GDP.

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