GASC to change payment terms to at-sight LCs for Egypt’s wheat tenders

The General Authority for Supply Commodities (GASC) will begin using at-sight letters of credit (LCs) for upcoming wheat tenders, assuring payments to suppliers as soon as they submit the necessary documents, according to Reuters. The state grain buyer had been relying on 180-day “usance letters of credit” for all previous purchases. Usance, or deferred, LCs — as opposed to at-sight LCs — add an extra layer of a 180-day period from the shipping date. The new payment terms are expected to lead to between USD 5-6 in savings per tonne.