TT not allowed
Posted: Thu Sep 23, 2010 10:51 pm
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
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