А letter of credit (LC) is an alternative to a bank transfer. However, if you want to mitigate risks in trade transactions in external or internal markets, then a letter of credit is the financial instrument you need.
Execution of a letter of credit has the following specific features:
- the Bank acts as an intermediary in settlements between the partners;
- the Bank complies only with the terms and conditions of the letter of credit, which is an agreement separated from the sale and purchase agreement;
- the Bank checks that the terms and conditions of the letter of credit fullfilled (presenting of shipping documents) before making the payment;
- a letter of credit is being executed for 100% of the amount of the payment/contract;
- international settlements are conducted in accordance with Uniform Customs and Practices for Documentary LC (as required by the International Chamber of Commerce).
For detailed information about UkrSibbank services, please contact the information and reference service at 729 (free for mobile calls) or 0 800 505 800 (free calls within Ukraine).