ITFA publishes Guide to Structured Letters of Credit

ITFA is proud to announce that it is releasing an in-depth guide to Structured Letters of Credit. These are instruments which provide substantial funding to trade in emerging markets, but have often attracted controversy because of a lack of understanding of what they are and what they are seeking to achieve.
ITFA’s guide – an industry first – aims to provide clarity, whilst also pointing out the risks.
Based on input from market participants (banks, commodity traders and lawyers), the document seeks to enhance understanding of Structured Letters of Credit and the issues surrounding their use in the market.
It looks at the history and development of Structured Letters of Credit and investigates:

The document ensures that a proper light is shone on these instruments, and says that it “is confident that a wider audience will now be able to understand and use them safely and effectively”.
The publication was produced by an ITFA Working Group, comprising representatives from Absa, Commerzbank, Lloyds Bank, Penningtons Manches Cooper, Sullivan & Worcester and Wagner International, amongst others.

The Guide to Structured Letters of Credit is available to ITFA members and can be found in the member area of the ITFA website.
Should you require further information, please do not hesitate to contact us at We would be happy to arrange a one-on-one with an ITFA Board Member, and/or representative from the Working Group.

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