Monday, August 18, 2014
South African bank loses $80M in Qingdao port loan scandal
Standard Bank of South Africa was hit with an $80 million loss from its exposure to suspected metal financing fraud in China, eliminating first-half earnings growth at Africa's largest loan provider.
Standard Bank, one of several international lenders caught by the scandal at the Qingdao port, said Thursday it was unclear if further write-downs would be needed given a dearth of information from China on the issue.
Chinese authorities started an investigation in May about whether metals trading firm Decheng Mining and related companies used false warehouse receipts at Qingdao port to receive multiple loans secured against a single cargo of metal.
The bank took an $80 million "valuation adjustment" against finance agreements called "repos" related to physical aluminum stored in warehouses in China.
For more of the Reuters Africa story: af.reuters.com
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