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Letter of Credit
•International Letter of Credit•Letter of Credit in rubles in Russian Federation
International Letter of Credit
International Letters of Credit are regulated by the ICC Uniform Customs and Practice for Documentary Credits. (Publication ¹ 600)
Russian International Bank offers the full service package to the clients regarding settlements under a Letter of Credit in foreign currency:
- advising and issue of Letter of Credit;
- documents check up;
- execution of Letter of Credit;
- confirmation of Letter of Credit by the first-class bank;
- confirmation of Letter of Credit by Russian International Bank on non-covered basis in frame of fixed limit;
- financing import transactions on non-covered basis within fixed limit.
A Letter of Credit opens for settlement under the contract between the Buyer and the Seller and represents Bank’s obligations to effect payment against documents fully complying with said "Letter of Credit's" terms and conditions.
A Letter of Credit are applied in foreign trade settlements all over the world and are kown to be reliable, diversified, and flexible instruments which safeguard the interests of both parties under a contract.
The Main advantage of a Letter of Credit is the fact that Russian International Bank, but not a Buyer, acts as a guarantor of payment.
Letter of Credit will allow you:
- to withdraw advanced payments
- to connect: settlements under a contract, transportation of goods and cargo insurance in one payment instrument
- to minimize risk of non-receipt goods, works, and services
- to guarantee payment in a timely manner
- to considerably expand the range of your contracting parties
Russian International Bank opens the following types of Letters of Credit in foreign currency:
• Transferable Letter of Credit
Allows using by one or several Sellers (second beneficiaries). It is recommended as payment under intermediate transactions.
• Red Clause Letter of Credit
Allows for receiving a part of the amount as an advanced payment before goods delivery.
• Back-to-Back Letter of Credit
It enables an intermediate business person to open a Letter of Credit in favor of a supplier on the basis of non-transferable Letter of Credit.
• Revolving Letter of Credit
Allowsfor the restoration a Letter of Credit amount through a certain time interval automatically. It is recommended for periodical (continuously renewed) supplies.
• Stand-By Letter of Credit
This type of a Letter of Credit is like guarantee with the same purposes.
Requirements to clients to open a Letter of Credit in foreign currency:
1. Settlements under a Letter of Credit shall be provided in a purchase-and-sale contract. Russian International Bank shall be stated as a bank-participant.
2. A client shall provide Documentary Business Department with “Application to open a documentary Credit” in 3 originals.
3. A client shall provide passport information to the Russian International Bank.
4. A client’s balance in Russian International Bank shall cover amount of commission under a Letter of Credit.
5. The payer shall provide the Bank with a pledge of the following:
• cash cover
• securities
• commodity and material valuables
• real estate
• deposits of legal entities
• guarantees of legal entities
Commissions and charges under a Letter of Credit are paid in accordance with the Bank’s effective tariffs for legal entities (point 4.2.).
Consultation services at all stages of transaction, including preliminary discussion of payment conditions under the contract are available to you in our Documentary Business Department.
Contacts
Tel.: +7(495) 797-8177
Letters of Credit in rubles in Russian Federation
Payments under Letters of Credit in Russian Federation are effected in accordance with the Provision of the Central Bank of the Russian Federation [¹ 2-P “Provision on Non-Cash Transactions in the Russian Federation”.]
Russian International Bank offers the full service package to the clients regarding settlements under a Letter of Credit in rubles in Russian Federation:
- advising and issue of a Letter of Credit;
- documents check up;
- execution of a Letter of Credit;
- confirmation of a Letter of Credit by Russian International Bank;
- financing of opening a Letter of Credit on non-covered basis in frame of fixed limit.
Using a Letter of Credit you can pay for the goods, works and services. This form of payment is also convenient in transactions with real-estate property and securities.
A Letter of credit opens for settlement the contract between the Buyer and the Seller and represents Bank’s obligations to effect payment against documents fully complying with Letter of Credit terms and conditions.
Russian International Bank opens the following types of Letters of Credit in rubles:
- covered (deposited) and non covered (guaranteed)
- revocable and irrevocable.
The Main advantage of a Letter of Credit is the fact that Russian International Bank, but not a Buyer, acts as a guarantor of payment.
- to withdraw advance payments
- to minimize risk of non receipt of the goods, works and services
- to guarantee payment timely
- to extend range of your contracting parties considerably
Requirements to clients to open Letter of Credit in rubles:
1. Settlements under Letter of Credit shall be provided in the purchase-and-sale contract. Russian International Bank shall be stated as the bank-participant.
2. The client shall provide the Documentary Business Department with “Application to open a documentary Credit” in 3 originals.
3. The client’s balance in Russian International Bank shall cover amount of commission under Letter of Credit.
4. The payer shall provide the Bank with a pledge of the following:
• cash cover
• securities
• commodity and material valuables
• real estate
• deposits of legal entities
• guarantees of legal entities
Commissions and charges under Letter of Credit are paid in accordance with the Bank’s effective tariffs for legal entities (point 4.1.).
Consultation services at all stages of transaction, including preliminary discussion of payment conditions under the contract are available to you our Documentary Business Department.
Contacts
Tel.: +7(495) 782-0366
