Buyers of goods are having problems getting letters of credit, without which international commerce can not function. It all goes back to the same continuing problem, that banks don’t trust each other.
“Trade finance is the oil that keeps the wheels of commerce going. Without it, everything grinds to a halt.”
It is amazing that after the banks have received all these funds from the government, that they still do not lend.
It is a needed correction to make lending requirements stricter, however, banks seem to be confused about the business they are in and are formalistic and demanding in a way that kills all business.