Inside China
Becoming "Modern"
China Popular Culture
Culture Shock
Additional categories . . .
Reading the Paper
Pic of the Day by Category
Home  /  Picture of the Day  /  Pic of the Day by Category  /  Economy 财经   /  利比亚向中企项目银行申请“保函延期”- Libya addresses Chinese banks crediting Chinese enterprises, asking for Deferred Payment Guarantee
利比亚向中企项目银行申请“保函延期”- Libya addresses Chinese banks crediting Chinese enterprises, asking for Deferred Payment Guarantee print version
level 2
4月2日,商务部[1]网站发布消息称,截至目前,利比亚两家银行共向中国进出口银行、中国银行、中国建设银[2]行提出11笔保函延期[3](Deferred Payment Guarantee)要求,总金额4.97亿美元。




April 2nd, the website of the Department of Commerce published a news item, saying that until now, two banks in Libya have addressed The Export-Import Bank of China, Bank of China and China Construction Bank, posing a request for Deferred Payment Guarantee (DPG), in a total sum of $497 million.

The dates due for the DPG mentioned above are in April, May, July and August (2011), and the earliest one was on March 25th. Among them, Libya's Sahara Bank has 7 Deferred Payment Guarantees. Libya's Republic Bank, concerning one DPG Payment, has posed a request for 'not postponing and paying the sum on demand', while other three DPG only posed the request to postpone.

According to analysis by personnel in the Banking business, the so-called 'not postponing and paying the sum on demand' is namely a request to prolong the guarantee time limit stated in the letter of guarantee. If the letter of guarantee expires, the other party wouldn't claim damages and the bank wouldn't be held responsible. The request to 'not postpone and pay the sum on demand', posed at present, is actually unfavorable for Chinese banks. It could be simply understood that if the engineering projects constructed by China's enterprises cannot be completed on schedule,  Libya's proprietor can simply claim damages money in a 1:1 format, according to relevant articles in 'keeping the letter of agreement'.

China's investments in Libya are concentrated in the industries of energy sources and building construction. Since February 15th, the North African country Libya has fell into disturbance. Afterwards, China began to evacuate Chinese citizens from Libya. On March 22nd, spokesman of the Department of Commerce, Yao Jian, revealed in a routine press conference that according to data we have in hands, there are currently 50 large-size projects which China undertakes in Libya, involving a contract money sum of $18.8 billion. The news published on the website of the Department of Commerce on April 2nd also indicates that the department is now coordinated with the National Expenses Committee of the State Council, and the supreme People's Court. This will lead to a proper response by China's relevant banks and enterprises to the above mentioned postponing request of relevant banks in Libya.

[1] 商务部 shāngwùbù - Department of Commerce

[2] 中国进出口银行、中国银行、中国建设银 zhōngguó jìnchūkǒu yínháng 、 zhōngguóyínháng、 zhōngguó jiànshè yín - The Export-Import Bank of China, a bank managed by the State Council, providing low interest loans to state projects; Bank of China, one of the five biggest Chinese banks; China Construction Bank, ranked as the 4th major Chinese bank.

[3] 保函延期 bǎo hán yánqī - Deferred Payment Guarantee (DPG); A bank service which extends a guarantee to an equipment manufacturer on behalf of its client that the financing extended by the financier would be repaid as per the terms agreed upon.

[4] 担保期限 dānbǎo qīxiàn - Guaranteed time limit

[5] 索赔 suǒpéi - Claim damages

[6] 保函 bǎo hán - Letter of guarantee

[7] 能源 néngyuán - Energy resources

[8] 建筑业 jiànzhùyè - Building construction industry

[9] 发言人 fāyánrén - Spokesman

[10] 大型项目 dàxíng xiàngmù - Large scale project

[11] 国务院国资委 guówùyuàn guó zī wěi - Short for 国务院国有资产监督管理委员会, State Council Management Committee for Supervision of State-Owned Property, in which representatives of the People's Court and People's Congress participate.

[12] 人民法院 rénmínfǎyuàn - The People's Court, the highest judicial organ in China.

Want to contribute something to this topic? - 想添加与这个话题有关的内容?

Tell a friend - 发给朋友

China LinksLanguage CenterPicture of the DayChinese Language PartnerAbout 关于Contact 联系Sitemap
© 2012 All rights reserved to