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  • Letters of credit (LCs) are one of the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the LC have been met, as verified through the presentation of all required documents. The buyer establishes credit and pays his or her bank to render this service. An LC is useful when reliable credit information about a foreign buyer is difficult to obtain, but the exporter is satisfied with the сreditworthiness of the buyer's foreign bank. An LC also protects the buyer since no payment obligation arises until the goods have been shipped as promised.

  • 1.Are LCs one of the most secure instruments available to international traders?
    2. An LC is a commitment by a bank, isn't it?
    3. What does the buyer establish?
    4. When is an LC useful?
    5. Why does an LC protect the buyer?

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  • Может вы подскажите как правильно перевести "банк, що представляє чек до оплати"? есть ли стойкое выражение?

  • Drawee