Division of letters of guarantee from the home where the issuing bank.. Local letters of guarantee. Letters of guarantee in foreign

Are divided into letters of guarantee in terms of the home to the issuing bank letters of guarantee local and foreign.

Local letters of credit: are issued by local banks operating within the country at the request of its customers. This is the version of the letter of guarantee to the beneficiary either resident within the same country, or to a beneficiary outside the country.

Foreign letters of guarantee: the letters are issued by foreign banksoperating outside the country for the benefit of the beneficiaries two shops. And where one of the contracting parties is a resident outside the State of the beneficiary, the beneficiary is resident he resorts to the bank that deals with him in his home country abroad in order toissue a letter of guarantee, and send it to the beneficiary in the other State.