Bankers spurn Asia commodity traders in credit squeeze
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Bankers increasingly reluctant to give commodity traders in Asia the credit they need to survive after anxiety has reached new heights in recent days as fabled Singapore oil trader Hin Leong Trading struggles to repay debts said to amount to $5.5 billion.
PHOTO: REUTERS
Bankers are increasingly reluctant to give commodity traders in Asia the credit they need to survive as the lenders grow ever more fearful about the risk of a catastrophic default.
Their anxiety has reached new heights in recent days as fabled Singapore oil trader Hin Leong Trading struggles to repay debts said to amount to US$3.85 billion (S$5.5 billion). And that is just weeks after another commodities firm, Agritrade International, collapsed after a unit defaulted on its loans.
