The Risks of Loans Using Deposit Funds from Export Proceeds
Monday, August 5, 2024
Banks regularly give credit to coal exporters who have deposits from foreign exchange proceeds of exports. It is prone to moral hazards.
A YEAR into the regulation, exporters are still complaining about the requirement to place foreign exchange proceeds from the export of natural resources products (DHE SDA) in the country's financial system. The government mandates that exporters of natural resources products, including mining and plantation products, must put at least 30 percent of their export revenue in domestic financial institutions for a minimum of three months.
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