Letters of Credit

Documentary Letter of Credit - a financial obligation of Bank (issuing bank) on behalf of the buyer to pay to the seller the agreed amount specified by the contract under condition of providing by the seller stated in the letter of credit documents.

For this operations customer generally have to make cash deposit or provideanother collateral, in order to ensure the letter of credit

If you have questions you can refer to specialists at the Bank's branches.

EXPORT
Advising
Advising of the export LC 0,1% (min USD 100, max USD 500)
Checking of documents (each set) 0,3% (min USD 100, max USD 300) plus mail expenses USD 100
IMPORT
Consultation with LC draft preparation (shall be refundable by reducing commission for LC opening) USD 100 
LC issuance arrangement up to 1% from LC amount (min USD 50)
LC opening:
In case of 100% of cash collateral 0,75% per quarter (min USD 250)
In case of other collateral (within the credit agreements) up to 2% per quarter (min USD 250)
  • Guarantee of goods delivery with required quality and quantity within the terms stipulated by agreement
  • Confidence that payment will be done against real shipment of goods
  • Possibility to get lower purchase prices for goods and longer term for its payment
  • Possibility to have post-import financing and privileges in lending
  • Significant decreasing of advance payment size on import agreement
  • Possibility to make structural payments schedule by agreement with consideration of own interests
  • High level of legal safety since letters of credit are the subject to International Unified Rules, which should be executed by all banks
  • Getting consulting services from banking specialists in the sphere of foreign trade documentary operations
  • Consideration of documents in accordance with international requirements

  1. Buyer and seller conclude agreement stipulating payment through letter of credit
  2. Buyer provides instruction for opening of letter of credit to the issuing bank
  3. Issuing bank opens letter of credit and send it to advising bank with request to advise letter of credit to beneficiary. Advising bank may act as executing and confirming bank
  4. Advising bank advises opening of letter of credit to beneficiary (Seller)
  5. Seller ships the goods of buyer (after getting of letter of credit by beneficiary and being sure that its conditions correspond with the conditions of agreement)
  6. Delivery of goods to the Buyer
  7. Providing of documents to executing/confirming bank. Checking of documents by executing bank. In case of it absolutely conformation with conditions of letter of credit, bank makes payment to beneficiary
  8. Sending of documents to the issuing bank and getting of reimbursement by the executing bank from the issuing bank
  9. Transfer of documents on letter of credit to the buyer

Tariffs

Good to Know

Export documentary letter of credit - is scheme of settlements, when customer of the Bank is the seller (exporter).

Import documentary letter of credit - is scheme of settlement  when customer of the Bank is the buyer (importer).