In case of letter of credit on foreign supplier, can confirming bank be a different country say usa , whereas shipper and negotiating bank are from Europe?
SHIRISH PAWAR, 7738990900 (Advocate) 04 February 2022
If letter of credit is accepted by supplier and confirming bank is ready then it is ok. It all depends on supplier.
Aryan Raj 05 February 2022
In response to your query,
A letter of credit, sometimes known as a "credit letter," is an assurance from a bank that a buyer's payment to a seller would be received on time and in the exact amount. The bank will be forced to cover the full or remaining cost of the transaction if the buyer is unable to make a payment on the acquisition.
And yes it is possible the confirming bank can be from different countries if the supplier and the bank are on terms with this this can be considered as a traveler's letter of credit.