JF-17/FC-1 Fighter Aircraft thread

lcloo

lcloo

Captain
If the Letter of Credit in this case referred to the document as issued by a bank then it is a committed payment where upon after the seller fulfilled all conditions/ clauses that required of him (the seller) the buyer's bank ( the bank that issued the Letter of Credit) will have to transfer the sum of money stated in the Letter of Credit (L/C) to the account of the seller.

The buyer will have a credit term of xx days (as granted by the bank) after the transfer of money to the seller, to pay back to the bank, with interest added.

So if an L/C, especially a "Irrecoverable Letter of Credit" has been issued, the deal is a s good as done, unless the seller cannot meet the conditions stated in the L/C.

A buyer can default payment to the bank, but the bank cannot withhold payment to the seller.
 
Jeff Head

Jeff Head

General
Registered Member
Blackstone said:
So, did China loan Sri Lanka money to buy the 12 Thunders?
Click to expand...
As Delft indicated, a letter of credit has been issued, and that more likely amounts to a Memorandum of Understanding so Sri Lanka will not have to pay in advance.

Will Chinese money be loaned to do the purchase? I guess we will wait and see.

It is probably a sure thing that China has made this deal with a very clear understanding of how Sri Lanka intends to pay for the aircraft.
 
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asif iqbal

asif iqbal

Lieutenant General
Well done to China and Pakistan finally we did what we always wanted to achieve and that's a export order for the JF-17

This is indeed a milestone and I a sure the foreign sale team lead by Chinese made the difference as the Pakistan sales pitches have been terrible

Now we have the formula and they need to build on this achievement and secure further orders and in higher numbers

PAC production should now hit peak rate and start to build 20-25 units per year, get the next 50 x Block II built and fit in the order for Sri Lanka

This year 2015 has been remarkable for Pakistan military hope they can secure another export order before this year is out as the portfolio is really big !
 
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