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← International Trade Finance Instruments

Guarantees, standbys, trade risk, digital trade and disputes

Module 05 / 5 · 70 min

Draft and assess guarantees and standby LCs, manage trade risk and trade-based money laundering, use digital trade channels and resolve disputes, ending with the Level 2 capstone.

In this module you will learn to

  • Describe bid, performance, advance payment, retention, customs and payment guarantees and the URDG 758 and ISP98 rules
  • Handle a demand, including the fraud exception and counter-guarantees from foreign banks
  • Set country and correspondent limits and identify sanctions and trade-based money laundering red flags
  • Explain SWIFT MT7xx and ISO 20022, eUCP, electronic bills of lading and the Electronic Single Window
  • Use ICC opinions and DOCDEX to resolve disputes, and present the capstone structure

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.