Because standbys and demand guarantees often contain automatic extension clauses, ICC Opinion TA954 offers important lessons for practice and the need for sound drafting of such clauses.
Sri Lanka: Importers now Insisting on Confirmed LCs
As the country’s foreign exchange shortage worsens, regular suppliers of imports who previously extended credit terms are now insisting on confirmed LCs.
As the country’s foreign exchange shortage worsens, regular suppliers of imports who previously extended credit terms are now insisting on confirmed LCs. Importers are also facing delays in honoring LCs and incurring high demurrage charges as a result of goods held up at port awaiting clearance.
