You are exactly right Jeremy. However we do not think charging anything if we do transaction tby this way. In fact we gave up to do this transaction because as you said it is not logical structure.thank you for your informative comments.Esra

Thank you for your comments. In fact Jeremy We also recommended our customer counter guarantee but since he does not want to pay double commission to both banks,he does not prefer the counter guarante. I know very well it does not sound very logical.But the customer insisted on this form.

Hi ! my name is esra from turkey . have you heard anything about confirmation of a payment guarantee ? I am informed that in romania it is very common. The structure is ,one bank in country A issues a payment guarante in favour of an exporter , a bank in Country B(generally the exporter's country) c...

Can you give some information about silent confirmation,since one of customers requests such a transaction and It is not commonly used,thus not well known.
Thank you

Dear Both, Yes,The subject of the LG is exactly the purchase of a trade receivable and LG is issued as assignable to discounting bank only.The exporter presents documents which are required in the LG text to the discounting bank on collection basis.If the documents are in conformity with the LG text...

thank you for yr reply.
best regards.
esra

LG' are not assignable instruments .but In some countries issue LG like LC.You can easily see the required documents in the LG text. The structure of the transaction is ; importer and exporter agree on the trade term.Importer requests from its bank to issue a LG in favour of exporter.Importer's bank...