Irrevocable letter of credit

(redirected from Irrevocable Letters of Credit)

Irrevocable letter of credit

Assurance of funds issued by a bank that cannot be canceled or amended without the beneficiary's approval.

Irrevocable Letter of Credit

A letter of credit that neither the bank granting it nor the letter holder (who is the buyer of some good) may cancel under any circumstances. This provides the seller with extra assurance that he/she will be paid on time and in the correct amount. Irrevocable letters of credit are most common in international commerce.
References in periodicals archive ?
In Argentina confirmed irrevocable letters of credit are the norm, although they have become hard to obtain as a result of the country's financial crisis.
exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers.
of Jonesboro was hit with a $3 million judgment in December 2001 for charging, usurious rates on loans, it surrendered its check cashers license and dropped its irrevocable letters of credit.
In a statement it said that requirement of advance payments against irrevocable Letters of Credit (LC) up to 100 per cent of the value of the goods and up to US$10,000 per invoice for the import of all eligible items would result in severe liquidity crunch which would increase the probability of default in payment of short term liabilities.
Irrevocable Letters Of Credit From An Approved Bank May Be Used In Lieu Of The Performance And Payment Bonds Or Cash In The Amount Equal To One Hundred Percent (100%) Of The Contract Price At The Approval Of The City Engineer.
Use of irrevocable letters of credit is quite common; however, AEW does not utilize confirmed letters of credit because the Bank of China considers itself backed by the Chinese government and, therefore, AEW feels that confirmation by a foreign bank is unnecessary and would be an insult to China.
He reiterated the request of Value Added Textile Exporters to recommend the State Bank of Pakistan to allow facility for exporters' Authorized Dealer to make import advance payments against irrevocable Letters of Credit (L/C) upto 100 percent of the value of the goods and upto US$10,000/- per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.
Bonds, Irrevocable Letters Of Credit Or Guarantees Issued By A Reputable Financial Institution;
Choosing a financial institution to provide investment loan - long-term investment loan, which is absorbed by detecting one or more irrevocable letters of credit issued by the Creditor by order of the Borrower in favor of the beneficiary.
He reiterated the request of value-added textile exporters to the State Bank of Pakistan to facilitate exporters' authorized dealer to make import advance payments against irrevocable Letters of Credit (L/C) up to 100 percent of the value of the goods and up to $10,000 per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.
He added that on request of Value Added Textile Export Associations, he will recommend the Governor, State Bank of Pakistan to allow facility for exporters' Authorized Dealer to make import advance payments against irrevocable Letters of Credit (L/C) up to 100% of the value of the goods and up to US$10,000/- per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.
Circular No.06 dated 14th July, 2018 has withdrawn the facility extended to Authorized Dealers to make import advance payments against irrevocable Letters of Credit (L/C) upto 100% of the value of the goods and upto US$10,000/- per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.