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China : CHINA'S biggest bank cuts down iron ore funding for IMPORTERS

June 9, 2014

China's biggest bank is cutting down iron ore funding for importers among a government crackdown on the use of imports as collateral for financing.

The Monthly lending quotas have been centralized to the provincial level. The China Banking Regulatory Commission has ordered banks to come out of risk controls

Provincial headquarters sets a quota for local branches in Shandong province. We don t decide anymore and, of course, the quota is much smaller than previous ones it s becoming very, very difficult to open letters of credit for iron ore.

The Bank of China has also ordered local branches not to open letters of credit if importers haven t found a buyer for the to be imported ore this will limit stockpiling.

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Source: TendersInfo (India)

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