What Is a Debt Settlement Agreement?

Delivery agreement, also known as "liquidation agreement", refers to a written agreement between countries for settlement of claims and debts in trade and other aspects

Delivery agreement

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Delivery agreement, also known as "liquidation agreement", refers to a written agreement between countries for settlement of claims and debts in trade and other aspects
Chinese name
Delivery agreement
Name
Delivery agreement
Meaning
Trade between nations
Also known as
"Liquidation Agreement
Also known as "liquidation agreement". Refers to a written agreement between countries for settlement of claims and debts in trade and other aspects. The main contents include: opening a clearing account, designating a clearing institution, and clearing the claims and debts for clearing; stipulating the procedures and methods for clearing, stipulating the currency and exchange rate for clearing;
The payment agreement is the product of foreign exchange control. Under the condition of foreign exchange control, one currency is often not freely convertible into another currency. The claims on one country cannot be used to pay off the debts to a third country. On a bilateral basis, it is necessary to conclude a delivery agreement to stipulate claims and debt settlement methods between the two countries. This method of clearing creditor's rights and debts between the two countries through mutual offsets helps to overcome the difficulties of foreign exchange shortages and thus facilitates the development of bilateral trade.

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