The letter of credit (LOC) for the country’s first two missile-firing frigates, whose contract was won by Hyundai Heavy Industries (HHI), is now being finalized, Philippine Navy (PN) flag-officer-in-command, Vice Adm. Roland Joseph Mercado has said.
“As far as I know, they are now finalizing the terms in the LOC, for the frigate project. That’s the only update I could give for now,” he said in an interview with the Philippine News Agency (PNA).
An LOC is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In case the buyer is unable to make payment for the purchase, the bank will be required to cover the full or remaining amount of the purchase.
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