SocGen to cutoff new credit for oil trading firms in APAC region after HLT collapse
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by Admin
French bank Societe Generale (SocGen) is allegedly terminating any new financing to oil trading firms in the Asia Pacific region after a USD 240 million exposure to Hin Leong Trading’s financial catastrophe.
It is also re-evaluating any future decisions in commodities financing within the APAC region following the international oil market crash and HLT filed for debt restructuring, according to a report by Bloomberg.
“Societe Generale doesn’t comment on market rumors but the bank reminds that Natural Resources financing is one of its core expertise,” the bank purportedly said in a statement. “Societe Generale will remain committed to the Trade Commodity Finance sector, including in Asia.”
SocGen reportedly published a loss in the first quarter of 2020 despite the bank allocating EUR 342 million (USD 372 million) as a buffer for risky transactions.
Apparently SocGen did not specify details on how the buffer fund went to bailing out ‘two fraud-related charges’, but added that it is likely more financing will be needed to bankroll those charges over the rest of the year.
Related: HSBC accuses Zenrock of fraudulent dealings, files for legal action amid credit concerns
Photo credit: Chris Liverani on Unsplash
Published: 14 May, 2020
