ECA, which had ruled out private traders as buyers and shippers of grain for Europe (TIME, Nov. 29), took another detour around middlemen last week. From now on, it will bypass many commercial bankers, who have been the agents for the distribution of over $1 billion in ECA funds.
Heretofore, the agents received letters of commitment from ECA and issued letters of credit to ECA countries. Under an optional plan ECA will set up accounts in the Federal Reserve Bank of New York on which ECA countries may draw, roughly like writing a...
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