A type of letter of credit to which, a confirming bank in additional the importer’s issuing bank adds its guarantee of payment. With this type of L/C, sometimes the exporter’s home country, sometimes in a third country, the exporter gets an additional guarantee. It rarely happens that the exporter establishes the confirming relationship. Usually, the opening bank seeks the conformation of the L/C with a bank with whom they already have a credit relationship. If this L/C is irrevocable, none of the conditions
can be changed unless all four parties to it agree in advance.
