Servicing corporate clients is traditionally one of the main directions of activity of JSC «CIB». We offer a modern complex of products and services aimed at creating and maintaining a stable financial platform for the development of corporate clients' business.
The Commercial Industrial Bank provides its Clients with a high-quality financial service in working with letters of credit, adapting it to the personal needs of each Client. Within the framework of agreements concluded with the Bank, operations with letters of credit can be carried out in such currencies as hryvnia, US dollar, or euro.
JSC «CIB» offers to use the following documentary services on favorable terms:
import letters of credit; export letters of credit; letters of credit in hryvnia for settlement under agreements on the territory of Ukraine; obtaining financing from foreign banks under an import letter of credit; letters of credit with payment upon documents presented to the bank; letters of credit with deferred payment upon presented documents; transferable letters of credit.
When using a documentary letter of credit as a payment instrument under an agreement between counterparties, a balance of interests of both parties is preserved, which ensures the preservation of a number of advantages for both the buyer and the seller.
Advantages for the seller:
elimination of the risk of non-payment under the contract; payment for the shipped goods will not depend on the buyer's solvency on the day of payment; there will be no possibility to change or cancel the terms of the letter of credit without the consent of the other party, which thus levels the risk of fraud in the transaction; exclusion of the risk of refusal of the supplied goods on the part of the buyer; the possibility of organizing bank financing against the received letter of credit, which can act as security for the receipt of funds in the near future.
Advantages for the buyer:
the letter of credit acts as a guarantee of timely shipment of goods; the letter of credit makes it possible to avoid the necessity of an advance, since the bank that opened it assumes the obligation to pay, which thus insures the transaction; the buyer's confidence that payment will be made by the bank only after the goods have been shipped and the entire necessary package of documents has been provided; thorough control by the bank over the correctness of the registration of shipping documents and control over the timeliness of their submission to the executing bank; the possibility of controlling the terms of execution of the letter of credit.
Main conditions for issuing an import letter of credit at JSC «CIB»
Amount
according to the terms of the contract
Currency
hryvnia, US dollar, euro
Validity period
up to 12 months
Payment condition
after presentation of documents with deferred payment
Security
movable/immovable property, surety, monetary coverage on account 2602
Commission for opening a letter of credit
0.2% of the amount, min. 800 - max. 5000 UAH (letter of credit in hryvnia) 0.2% of the amount, min. USD 100 - max. USD 1500 (letter of credit in currency)
Commission for servicing the letter of credit
2.5-4.5% per annum (depending on the financial condition, security, client's rating)
Proceeding from today's economic and political conditions in which business in Ukraine is developing, the letter-of-credit form of settlements has already proved its effectiveness, versatility, and flexibility for its use both in international and in local agreements.
More detailed information on the website or by phone of the Contact center 0 800 501 200 (calls are free within Ukraine).
