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Global General

Libyan banks ask Chinese lenders to extend letters of guarantee

(Xinhua)
Updated: 2011-04-03 10:43
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BEIJING - China's Ministry of Commerce (MOC) said on Saturday that two Libyan banks have submitted applications to Chinese lenders for an extension on their letters of guarantee.

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Libya's Sahara Bank and Gumhouria Bank asked three Chinese lenders, including Bank of China and China Construction Bank, to extend 11 letters of guarantee, the ministry said in a statement on its website.

The request came as the ongoing turmoil in Libya disrupted production and business activities.

The 11 letters of guarantee involved $497 million and seven Chinese companies. Most would mature in April, May, July or August this year.

The ministry said that it would work with the State-owned Assets Supervision and Administration Commission, the China Banking Regulatory Commission and the Supreme People's Court to help affected banks and companies to "properly" respond to Libya's request.

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