Financing export and import operations
Along with usual lending Absolut Bank offers its clients
financing of import deliveries of goods and equipment by issuing
documentary letters of credit or guarantees of first-class
banks. The main advantage of the use of these instruments in
settlements with foreign suppliers compared to a bank loan
is the smaller cost of financing – from 8% p.a.
To reduce the cost of financing of foreign trade operations
the clients of Absolut Bank use in their settlements various
kinds of documentary letters of credit (with deferment of payment
and with post-financing) as well as bank guarantees of first-class
western banks both for export operations (tender guarantees,
performance bond guarantees, advance payment guarantees) and
for import operations (payment guarantees and guarantees of
the repayment of commercial credit).
To deal with the problems connected with financing of the
projects which envisage the purchase of expensive imported
equipment Absolut Bank is implementing a program of organization
of medium- and long-term financing for its clients from investment
loans, extended by western banks under the credit lines opened
for Absolut Bank, or against the guarantees of export credit
agencies.
In addition to this, for participants in the foreign trade
activity Absolut Bank offers bank guarantees in favor of the
customs authorities as an alternative to a cash deposit.
Required documents: |
- Payment Guarantee Form
- Letter of Credit Application/Application for Amendment
of the Terms and Conditions
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