Global General

Libyan banks ask Chinese lenders to extend letters of guarantee

(Xinhua)
Updated: 2011-04-03 10:43

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.

Related readings:  NATO launches 74 airstrikes in Libya; civilians killed  US to end air combat assistance in Libya    NATO assumes leadership over Libya operations

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.