SINGAPORE: Banks are suspending the credit lines for some Chinese independent oil refineries amid rising concerns about overall industrial defaults and as the coronavirus outbreak has eaten into the processors’ fuel sales.
At least three independent refiners have had US$600mil in credit lines suspended by international banks, said three refinery and trading executives and two finance directors at the affected companies, requesting anonymity because of the sensitivity of the matter.DBS Group Holdings in Singapore, France’s Natixis and BNP Paribas, and Dutch bank ING have suspended open account credit facilities for the companies based in Shandong province, home to the majority of the independent plants that buy about 20% of China’s oil imports, the sources said.
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