GMS 400 Lecture Notes - Lecture 8: Performance Bond, African Development Bank, Asian Development Bank
29 Mar 2015
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A document from the importer"s bank guaranteeing payment by the bank, in a specified number of days, if all conditions of the sales contract are met (e. g. 30, 45, 60, 90, 180-day. Lc: irrevocable lc: the foreign bank cannot withdraw the lc (this is the international standard) if the terms of the contract are followed, confirmed lc: confirmed by exporter"s bank (the exporter"s bank agrees to pay should the foreign. May be a new government policy or alteration of exchange controls in the buying country. Foreign bank may run short of hard currency: every stage of confirmation costs more. Export development canada (edc: provides financing or loan guarantees for major capital projects in foreign markets. Foreign receivables insurance (not available from your domestic bank) will guarantee up to. 90% of your receivables: provides foreign investment insurance: political risk protection for new canadian investments abroad later.
