Money

BOC says business risk in Libya under control

(Xinhua)
Updated: 2011-04-05 11:21

BEIJING - The Bank of China (BOC), the country's third largest lender, said that its business suffered no "actual losses" amid the Libyan turmoil and that the risks are controllable.

The bank is monitoring the potential risks that the Libyan turmoil might cause the bank and its clients. The bank has taken the necessary precautions against these risks, BOC spokesman Zhao Rong said on Monday during an exclusive interview with Xinhua.

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Zhao said that the BOC's major business in Libya covered the advanced payment for contracted projects and performance guarantee. The spokesman declined to provide further details.

According to previous reports, three Chinese banks, including the BOC, have received applications from two Libyan banks -- Sahara Bank and Gumhouria Bank -- for an extension of their letters of guarantee.

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

China's Ministry of Commerce said on Saturday that it would work with authorities to help affected banks and companies "properly" respond to Libya's request.