ERITREA LETTER OF CREDIT

ERITREA LC ISSUING BANK CONFIRMING BANK CHARGES

ERITREA LETTER OF CREDIT CONFIRMATION FEE

For Eritrea, when an exporter has concluded a commercial export contract with a Eritrean importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.

The Eritrean importer will ask the Eritrean bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.

For Eritrea, the exporter must choose a confirming bank that has in its network of correspondents the Eritrean bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.

A letter of credit issued in Eritrea is usually confirmed by a big number of banks which are prepared to take the risks of Eritrean banks and make sure the beneficiary of the LC or exporter obtain his payment.

LIST OF ERITREAN BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS

  • Housing and Commerce Bank of Eritrea (HCBE)

  • The Bank of Eritrea

  • Development and Investment Bank

  • Commercial Bank of Eritrea (CBE)

CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH ERITREAN BANKS

Banks which are confirm the letters of credit issued in Eritrea by Eritrean banks are: (please contact us to obtain the list or to be listed as confirming bank).

ERITREA: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A ERITREAN BANK

Confirmation charges and fees for letters of credit issued through Eritrean banks can be obtained on demand by emailing: info@tradefinance.africa.

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