Third Country Acceptance

In international trade, a Banker's Acceptance drawn on a bank in a country other than the country of the importer or exporter, and paid in the national currency of the accepting bank. Third country acceptances, also called refinance bills, often are used by exporters to obtain bank financing at competitive rates. Since the mid-1970s, Japanese and South Koreans have financed a large portion of their exports, including exports to European countries, through bankers' acceptances denominated in U.S. Dollars, which accounts for much of the growth of these acceptances in the last decade.