Letters of credit

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If you are engaged in activities (including trade), where you need to quickly procure imported goods and have no foreign currency cash, then L/C opening transaction in our Bank is just for you!
A letter of credit is a monetary obligation of a bank, accepted on the basis of an order from the applicant (customer-buyer) to make a payment for an amount determined between the parties in an agreed currency in favor of a beneficiary (seller) after submitting documents provided for by the terms of the letter of credit within the prescribed period.

Documentary L/C transaction contributes to the expansion of foreign trade operations of clients, increase in cash flows, development and strengthening of trust relations with foreign partners and their banks.

Basic terms of the transaction:

Validity period - no more than 360 days;
Interest rate - by agreement;
One-time management fee – according to the bank's tariffs;
Grace period for repayment of the transaction is no more than 9 months from L/C opening date;
Early repayment of L/C is allowed, fines and commissions for early repayment are not collected.
Collateral - real estate, motor transport, deposits, special equipment and other liquid property in accordance with the Legislation;
Mixed collateral is applicacle.
Collateral is accepted for a total amount of 125% of the amount of a letter of credit with a discount. Discount size depends on a type of property, its value;
Other transaction costs - according to tariffs of a foreign bank

This financial transaction provides a number of advantages, such as:

international legal reliability in a form of a payment instrument;
a means of high-quality short-term financing;
possibility of operational settlements with foreign suppliers;
individuality in determining conditions for provision of services and organization of cooperation;
guarantees of solvency and mutual settlements between the parties within under the concluded transaction;
protection against a risk of non-payment by an applicant (buyer) in favor of a beneficiary (seller)

How to open a documentary L/C:

1	Consultation Select a branch of the Bank convenient for you in your location and make an appointment with a Bank’s specialist. During the meeting, a Bank specialist will familiarize you with the list of documents required for obtaining a loan, advise on their form and content and answer all your questions.
2	Collection of documents and execution of a loan application Collect a complete package of required documents. At the meeting, together with a Bank specialist, fill out a loan application for a loan and submit a full package of the required documents. The Bank’s specialist will register a loan application and provide you with a certificate confirming that your loan application has been registered and the submitted package of documents has been accepted for consideration according to the established procedure.
3	Consideration of a loan application and decision-making by the Bank according to the established procedure The period from the date of receiving by the Bank of a loan application for a loan for fixed capital assets with the attachment of a full package of required documents and the date of the Bank’s decision on the loan application will not exceed the period established by the legislation of the Republic of Uzbekistan. The term for considering a loan application and a decision-making depends on the completeness of the set of documents provided by you. Show the Bank specialist your company and property offered as collateral.
4	Conclusion of a loan agreement and registration of collateral In case of a favorable decision of the Bank, you shall sign a loan agreement and arrange loan collateral in compliance with the established procedure.
5	Getting a loan The loan is issued by opening a separate loan account and payment of your payment orders from this account by the bank transfer.