ArmInfo. Armenia's Minister of Economy Vahan Kerobyan held a meeting with representatives of Armenia's banks to discuss draft amendments to the Ra Civil Code. The draft deals with replacement of money transfers to developers' special accounts with letters of credit.
The minister substantiated the advisability of amendments, with banks' proposals to be considered. The bankers voice their opinions of the application of documentary letters of credit in the context of development problems and bank risks.
A Documentary Credit ("D/C") also known as Letter of Credit ("L/C") is a method of payment where the buyer's bank guarantees payment to the seller with the condition that the seller has to fulfill the terms specified in the L/C.
