PTT Polymer Marketing Company, a Thailand-based petrochemical marketing and distribution company, has installed a bank payment obligation (BPO) programme.
Use of letters of credit (LC) for exports to Bangladesh surged 118% last year, compared with the previous 12 months. Increased trade with China is likely a key driver.
Australian treasurers and CFOs say Chinese counterparts are requesting more LCs are part of their trade negotiations. The LCs are allowing the Chinese firms to line up better financing rates offshore.