UK-based Standard Chartered Plc, which has lent some US$2 billion to the diamond industry, is demanding more loan protection from its clients, according to IDEX Online, citing a report on Bloomberg.
Standard Chartered which is seeking to tighten standards, will no longer accept collateral from diamond companies in the form of receivables, explains IDEX Online. Companies that are unable to meet these terms may face higher interest charges or may not have their debt facilities renewed, notes IDEX Online.
The change comes during a period when diamond companies are challenged by a lower level of credit due to the industry’s greatest lenders efforts to reduce their exposure to risk, notes IDEX Online.
