Letters of Credit – Parties :

1. Applicant (importer) requests the bank to issue the LC

2. Issuing bank (importer’s bank which issues the LC [also known as Opening banker of LC])

3. Beneficiary (exporter) Different types of banks:

– Opening bank (a bank which issues the LC at the request of its customer [importer])

– Advising bank (the issuing banker’s correspondent who advices the LC to beneficiary’s banker and/ or beneficiary)

– Negotiating bank (the exporter’s bank, which handles the documents submitted by the exporter. The bank also finances the exporter against the documents submitted under a LC)

– Confirming bank (the bank that confirms the credit)

– Reimbursing bank (reimburses the LC amount to the negotiating/ confirming bank)