CONDITIONAL LETTER OF CREDIT
The conditional letter of credit can be up to 180 days.
a) Your bank shall open the letter of credit with payment at sight to the supplier;
b) For the cost and our commission the customer has to send you a deposit via swift MT103 or irrevocable pay order saying that payment will be made within 24/48 hours from receiving the LC at supplier’s bank;
c) Once ready, goods will leave towards customer destination;
d) All the original documents must be sent to your credit institute together with customer’s personal (of the company) promissory note/s as guarantee for the total amount of the LC;
e) Before goods come to destination port the customer must pay the total LC via swift through his bank;
f) The customer will receive original documents and promissory notes will be given back;
g) The cost for this letter of credit is of 3%;
UNCONDITIONAL LETTER OF CREDIT
Your Bank shall open this kind of letter of credit or standby letter of credit with payment at sight to the supplier.
a) The customer can pay the LC back in 360 days;
b) For the cost of the LC the customer has to send you a deposit via swift MT103 or irrevocable pay order saying that payment will be made within 24/48 hours from receiving the LC at supplier’s bank;
c) a Bank Guarantee from the customer’s bank or bank-endorsed promissory note/s are deposited at your bank in order to guarantee the LC payment;
a) Once you open the Letter of Credit with payment at sight to the supplier the deposit and the guarantee can become earned;
b) The cost of this facility is of 5%
BANK GUARANTEE
Your Bank provides the customer a Bank Guarantee with a duration of one year and one day for the following purposes:
• Credit line
• Upfront/Advanced payments on contract work
• Tender (Bid Bond – Performance Bond)
• Hotel and Holiday Villages (e.g. room booking)
• Airlines (Tickets + IATA)
• Any other purpose accepted by you
For the cost and our commission the customer has to send you a deposit via swift MT103 or irrevocable pay order saying that payment will be made within 24/48 hours from receiving the bank guarantee
The cost of this instrument is of 4%
FINANCIAL PROJECTS
Financial projects can be either of governmental or of private company and in different industrial fields or tourism, infrastrucuture, facilities.
The possibility is that your bank endorses the customer’s promissory notes through a bank guarantee and according to following expiring dates:
a) 5 years including 1 year grace period
b) 7 years including 2 years grace period
c) 10 years including 2 years grace period
* The customer pays the PN every six months
* The cost for this guarantee is
- 4% on the total amount during the grace period
- 4% after grace period on the remaining amount and decreasing
* The customer will sign a notarised declaration saying that the guarantee will be automatically cancelled in case he doesn’t pay the cost of premium in advance every year or in case he fails to pay a promissory note to the beneficiary.
