Export Letters of Credit are a guarantee instrument issued by a foreign bank for the account and by order of the importer in favor of the Brazilian exporter. The Brazilian exporter will receive the proceeds directly from the importer’s bank, regardless of the whether the importer fulfills his obligation or not.
Issuing bank risk and issuing bank country risk can be reduced by obtaining confirmation of the L/C. When providing this service, CCB Brasil assumes payment to the Brazilian exporter, covering the country and foreign bank risks.
In the case of letters of credit opened in countries considered “high-risk”, CCB Brasil also provides confirmation under an agreement with the IDB – Interamerican Development Bank and the IFC – International Finance Corporation.
Payment on sight L/C will be done against delivery of the shipping documents, and on term L/Cs, on the date of maturity established in the letter of credit. All and any payments will only be made if the exporter fulfills all the conditions established in the L/C.