Letter of credit

Advantages of the letter of credit to the SELLER:

·         Reliance of payment reception of the terms adjusted by the parties and established in the text of the letter of credit;

·         The warranty of reception of payment after goods shipment, irrespective of solvency of the buyer.

Advantages of the letter of credit to the BUYER:

·         Deliveries of goods according to the nomenclature, terms and other conditions stated in the letter of credit;

·         Reliance that the seller will not receive payment for the goods until the terms of the contract on its delivery are executed;

·         Possibility to get a loan below the rate of standard loan (at the expense due to the funds from international financial institutions);

·         Possibility to demonstrate the solvency that is of great importance for the new deals with new partners;

·         Use of the international experience at realisation of the foreign trade contracts.

To open a letter of credit it is necessary for the Client:

·         When import by residents - to open in the Bank the passport of the deal for the contract on which the letter of credit opens; in all other cases - to present a copy of the foreign trade contract.

·         To fill in and present to Bank the application on the letter of credit (in due form according to the order of registration established in Bank).

·         To provide the bank the cover if applicable of letter of credit and to pay the commission for registration (the cover could be provided at the expense of the credit granted by Bank).