Document background
The Confirmed Irrevocable Letter of Credit is a crucial document in international trade finance, particularly when trading parties require enhanced payment security. This instrument is commonly used when conducting business in regions with higher commercial or political risks, or when dealing with new trading partners. The document, governed by Irish law and typically following UCP 600 guidelines, provides a binding commitment from both the issuing bank and a confirming bank to pay the beneficiary upon presentation of compliant documents. The confirmation by a second bank adds an extra layer of security, making it especially valuable for exporters who may be uncertain about the creditworthiness of the issuing bank or the economic stability of its country. The irrevocable nature means that once established, the letter of credit cannot be modified or canceled without the agreement of all parties involved.
