Approaches to standby letters of credit (standbys) and guarantees differ in different parts of the world. People perceive things differently, and that has an impact on how practice evolves. Take for example the Americas where standbys are generally used when issuing a guarantee undertaking. In Europe, however, (and for that matter in other parts of the world) guarantees serve the same purpose.
After a rapid and efficient revision of the URDG, the new rules came into effect on 1 July. Still, the new URDG 758 will rightly remain high on the ICC Banking Commission agenda for some time, for the revision is not the end of the story. In fact, it’s the beginning of a no less important task: implementing the rules as efficiently as possible! Based on my experience with seminars and the on-going implementation of URDG 758 in my country, I’d like to share my thoughts with the readers of eBSI TradeBrief.