Letters of guarantee and documentary business

You have international clients, and you need your bank’s support in international transactions? The letter of credit, as a payment and security instrument, is the right solution for you. The letter of credit is the safest instrument for the payment of goods and services, and it provides maximum protection to the importer (buyer) as well as the exporter (vendor). The Bank opens a letter of credit upon your request and in accordance with your instructions makes sure it is covered. Once documentation is presented, the Bank effects relative payment to the vendor, within deadline and in the amount stipulated in the letter of credit. The documentary letter of credit is a bank’s obligation to pay to the vendor of goods or services a certain amount within a certain deadline, upon presentation of relevant documents which confirm that relevant goods were taken in accordance with conditions indicated in the letter of credit. The documentary letter of credit may be opened upon the instructions of a local buyer in favour of a vendor abroad (nostro) but it is also possible for a buyer abroad to open a letter of credit in favour of a local vendor (loro).

The guarantee is a collateral instrument whose role is to secure payments or performance of contractually agreed obligations. With guarantees, the Bank guarantees that the instructing party will settle all liabilities towards beneficiary and within deadlines indicated in the guarantee. The Bank issues all types of guarantees in the country and abroad. Payable guarantees: to secure a loan and to secure payment of goods and services Performance guarantees bid bonds: performance bonds, advance payment guarantees, customs guarantees, retention money guarantees