SPOTLIGHT
shipments as well as bulk vessel business. When bulk business is workable, we do it, but purchases are still done in containers whenever feasible." 3 • More stability "Banks had been giving letters of credit (LCs) without collateral," says Majeed, "but now 50% of payment is taken in advance, so when the cargo comes in there’s less pressure on buyers to sell quickly into the local markets and reduce local prices. This keeps markets stable and avoids disturbing supply chains." 4 • Bigger is better for bulk financing Smaller companies may not meet requirements to receive an LC to buy in bulk. Majeed explains: "Pakistani banks are quite supportive, but high interest rates mean not everyone can get LCs from the banks. Banks tend to support bigger groups with better financial
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