Ahli United Bank has approved to issue letters of credit worth US$ 130 million (EGP 900 million) to companies working in food industries and petroleum materials in order to import raw materials.
Sources said the bank is close to signing the definitive agreements of the new letters of credit to support the sectors amid the current oil shortage.
The terms of these LCs range from 3 to 6 months. The bank has succeeded in issuing letters of credit and guarantee and collection documents through its correspondents in foreign countries.
Cutting Egypt’s sovereign credit rating imposes more restrictions on local banks in issuing letters of credit and guarantee as correspondents demand letters 100% guaranteed because of the high risks.