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

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

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

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

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

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

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Indian banks cautious on Sri Lankan L/C exposures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Sri Lanka prepares to settle fertiliser dispute with China

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

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

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

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

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

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OFAC imposes restrictions on L/Cs for Belarus sovereign debt

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

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

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

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

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

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Alleged Kolkota-based L/C fraudsters' assets attached

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Mining and metals blockchain platform Minehub launches trade finance application

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

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

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

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

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

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

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

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

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

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

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

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Controversial US power producer announces green L/C facility

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

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

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

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

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

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

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

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

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

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

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

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