Forfaiting Glossary

Glossary Items beginning with : C

Counter Credit

A variation of the back-to back credit where a second bank (usually that of the original beneficiary) issues a separate L/C in favour of the second beneficiary. Also known as a countervailing credit.

Counter-indemnity

The irrevocable commitment from a customer that he will repay the bank if a guarantee or bond issued by the bank is called.

Counterparty

An entity who is buying and/or selling future debt obligations.

Counterpurchase

Two separate agreements under which the buyer agrees to purchase and pay for goods and the seller agrees to purchase and pay for goods of a (usually) equivalent value.

Countertrade

The umbrella term referring to a growing number of trading and financing techniques in which payment is made either wholly or partly in the form of goods (see Barter).

Cover

Provision of export credit guarantee/insurance against risks of payments delays or non-payments relating to export transactions. Cover is usually provided for commercial and political risk, from date of contract or date of shipment.