Hi Pals,
recently I had some problems with an L/C available by payment with the nominated bank, claused "TT reimbursement not allowed" . So, instead of sending an MT742 costing few cents, I had to prepare a letter and sent it to reimbursing bank, costing about 20 Euros. And considering the Special Courier Service the claim reached destination in 2 days, so the issuing bank has been debited value 2 days later. This practice is worth 2 days loss of value, considering the EUR Rate, libor or libid ?
But, may be, I have no idea of this behavior by the issuing bank, could you help me in understanding if some remote reason are obliged the issuing bank to do so?
Your help appreciated.
Thanks and Ciao
TT not allowed
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Gart
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Korean banks
In our practice Korean banks do so very often asking to claim for reimbursement from their branches abroad by beneficiary's draft. This even costs more than late payment and courier charges, reimbursement fee of some USD 150,00-180,00 is always deducted from proceeds.
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jmitra
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TT Reimbursement?
personally i dont understand what is meant by "TT reimbursement allowed / not allowed". if it means, as picant pointed out, that reimbursement is to be claimed by courier and not by SWIFT, then its quite frustrating. does not make in sence. i asked several people about what it means. one possible explation was that negotiating bank can not claim reimbursement. not sure whether that is true or not. more comments welcome on the issue