Background
A full range of letter of credit transactions on behalf of corporate clients - from advising to post-financing by letters of credit.
The Bank carries out all operations with letters of credit on behalf of corporate clients, including the opening of import, transferable and revolving letters of credit, as well as confirmation and operations with financing elements (discounting and post-financing under letters of credit).

Transactions are subject to UCP600 or Bank of Russia Regulation No. 383-P dated 19.06.2012
Product features
The use of letters of credit provides ample opportunities for the Bank to support and finance trade and foreign economic transactions of clients, incl. opening and payments under letters of credit within the framework of existing credit lines.
When opening a letter of credit IBEC, as an issuing bank, undertakes an obligation to make a payment in favor of the beneficiary / recipient of funds against the submission of documents stipulated by the terms of the letter of credit
In addition to import letters of credit, IBEC can also carry out letters of credit on export operations of corporate clients, confirming letters of credit in their favor or providing discounting on them
Focus on exporters and importers, as well as clients working with new counterparties

Advantages

Post-financing / discounting costs are significantly lower than traditional lending
Thanks to broader funding opportunities for such operations, including through special support programs, the cost is significantly reduced
Minimizing risks
Payment under a letter of credit is carried out against the submission of documents and is a contract-independent form of settlement, which reduces both commercial and payment risks, with the participation of reliable partner banks
Reduced upfront import payments
The seller’s confidence in receiving payment leads either to refusal of suppliers from advance payments, or to their reduction
Possibility to execute a deal with a new counterparty
In case of entering new markets or cooperation with new buyers, the letter of credit allows you to reduce risks and start cooperating with new partners
Terms of provision
Participation in the transaction of a resident of the IBEC member country (as an exporter or importer, supplier / buyer / general contractor, subcontractor, etc.).
Providing a copy of the contract under which the letter of credit is opened, as well as related documents (depending on the terms of the transaction).
Provision of collateral acceptable to the Bank (not used when accepting risk for the financial institution of the counterparty under the contract).
Conclusion of credit security documentation.
Conducting compliance procedures for the transaction parties, incl. exporter and importer.
If necessary, there is a limit on the counterparty's financial institution (including when confirming / discounting letters of credit).
Operations schemes
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