TWO leading international banks have been forced to get tough with Chinese clients to recover multi-million dollar foreign exchange losses.
It is understood initial attempts by the banks to recover the money failed, forcing them to demand payment strongly. If payment had not been received, stop-loss orders would have been placed on the accounts.
The revelation is the latest in a long line of incidents calling into question the creditworthiness of mainland companies and may strengthen calls for China's international credit rating to be downgraded.
Senior US banking sources said the two banks had experienced delays meeting unpaid debts from Chinese clients at the tail end of last year.
Similar problems at the end of last year forced US investment bank Lehman Brothers to take legal action against two Chinese companies to recover alleged debts totalling about US$100 million (HK$773 million).
Both Goldman Sachs and Bankers Trust are understood to have resolved the problems following their get-tough stance and are continuing to trade on behalf of the enterprises.
Representatives for the banks admitted there had been delays getting payment but insisted the issue had been concluded without threatening legal action.
