Confirming Bank Demanding Higher Interest For Discounting

[shahriar]

dear all,

today i faced an unusual case. last month a local bankissued an LC in favor a beneficiary located in south korea available with XYZ bank by negotiation at 60 days sight . XYZ bank was requested to add confirmation and confirmation charges are on applicants account. The LC includes the following clause under the field 47A.

interest rate for the usance period will be paid at LIBOR rate.

few days back the issuing bank received a swift message which says that as per their rule, they can only "discount" the bill if the interest rate is LIBOR+3% and thus seeking an amendment.

my question is, can the confirming bank push the issuing bank to do so especially when the LC is available by negotiation?

regd

shahriar

[ofei]

Dear shahriar,
I think it's a question out of scope of UCP.

Regards

Ofei