NEWS AND EVENTS / NEWS / HOW SAFE IS AN ‘UN-SAFE’ GUARANTEE

David Beaves

How safe is an ‘Un-SAFE’ Guarantee
Monday 25 May, 2009

David Beaves and Peter Murray consider recent amendments to the regulations governing China's State Administration of Foreign Exchange (SAFE) and its implication on guarantees issued in relation to ship finance and shipbuilding contracts in China


"Charles Dickens famously wrote “credit is a system whereby a person who can't pay gets another person who can't pay to guarantee that he can pay”. Many guarantees have been issued by Chinese guarantors over the last few years, some in the context of refund guarantees for shipbuilding contracts, or others, for example, guaranteeing performance under charters. Dickens cynically wrote about a guarantor “that can't pay”, but what if the reason for non-payment is that the guarantee concerned has not been approved by or registered with a Chinese state body? We are referring, of course, to the State Administration of Foreign Exchange ('SAFE')." 

How safe is an ‘Un-SAFE’ Guarantee (pdf)

3rd International LNG Shipping Conference 2012 - Current & Future Opportunities: Is the Best Still to Come?

Date: Monday 20 - Wednesday 22 February, 2012
Location: Jumeirah Carlton Tower Hotel, London

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Date: Wednesday 29 - Thursday 01 March, 2012
Location: Hilton London Tower Bridge Hotel

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Date: Tuesday 06 - Wednesday 07 March, 2012
Location: London

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Date: Wednesday 25 - Thursday 26 April, 2012
Location: Marriott Hotel, Copenhagen

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