The three largest commercial banks in Taiwan have temporarily suspended negotiations for letters of credit for Taiwanese companies doing business with nations in the Middle East region due to higher business risks
Executives at First Commercial Bank, Chang Hwa Commercial Bank, and Hua Nan Commercial Bank said the action was taken after the launch of air strikes on terrorist facilities in Afghanistan by U.S. and Britain. They said the service of paying advance money by the banks is also suspended. But the service of L/C factoring is now reserved only to customers with long-term relationship and outstanding credit standings. Many other banks have also stopped L/C credit services to companies dealing with business partners in selected nations including Iran, Iraq, and Syria
