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Mohsen Line – warehouse receipts
23 March 2009
Adding security to commodity trading
Read more:
grain
Mohsen
GMR
DCR
Dubai
UAE
Standard Chartered
warehouse receipt
With banks having a limited appetite for risk, finding the right mitigant is particularly important in the current climate. Dubai Multi Commodities Centre's (DMCC) commodities receipt programme can be used as such a mitigant and its application on this deal has stood out as banks facing the credit squeeze looked for additional securities to cover their credit exposures.
For banks, the solution provides a standardised 'secured' trade and commodity financing tool while offering credit-risk mitigation for the value of the collateral. The Dubai Commodities Receipt (DCR) system, which has the backing and support of the Dubai government, and its online internet-based system with audit trails and reporting features, is of benefit to the client and bank involved with the financing....
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