Skip to content
Erudite AfricaCenter of Excellence
← International Trade Finance Instruments

Advanced examination, LC structuring and trade finance

Module 04 / 5 · 70 min

Examine complex presentations under UCP 600 and ISBP 821, handle refusals and waivers, and structure confirmed, back-to-back and transferable LCs with pre- and post-shipment finance for a Hawassa garment exporter.

In this module you will learn to

  • Apply UCP 600 and ISBP 821 standards to complex document sets and issue a correct refusal notice
  • Explain confirmation, silent confirmation, red and green clauses and usance LCs payable at sight
  • Design a back-to-back or transferable LC structure and compare the two
  • Price LC discounting, forfaiting and pre-shipment finance and link them to FX availability

Built on

  • Erudite Africa training module: Ethiopian Context, topic 1.d International Trade Finance Instruments, Levels 1 and 2 (October 2026)
  • NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, FXD/05/2026, FVD/01/2026, SBB/96/2025, SBB/99/2026, and the MPC No. 7 release (July 2026)
  • Ethiopian Investment Board Directive No. 1083/2025 and Special Economic Zone Proclamation No. 1322/2024
  • ICC rules: UCP 600, ISBP 821, URC 522, URDG 758, ISP98, URR 725, eUCP and Incoterms 2020
  • Commercial Code of Ethiopia (negotiable instruments), cited as reported

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.