Home > Term: back-to-back documentary credit
back-to-back documentary credit
Also: counter credit, back-to-back credit. Documentary credit which is granted to another beneficiary on the basis of an existing, non-transferrable documentary credit (prime/master/original letter of credit). Back-to-back credits are commonly used by middlemen when the original credit cannot be transferred and/or the terms of the two credits are not the same.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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