Letter of credit (L/C) is a form of settlements according to which the Issuing bank on behalf of the Buyer (Applicant) undertakes to pay to the Seller (Beneficiary) against complying presentation of documents as per terms and conditions of L/C.
The usage of documentary transactions guarantees fulfillment of contractual obligations, reduces risks of the parties under the contract, ensures timely delivery of goods; to avoid advance payments for goods; obtain a deferred payment, receive proceeds for the supplied goods on comfortable financial terms, etc.
Benefits of a Letter of Credit:
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The cost of L/C is significantly lower than a loan;
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Progressive payment of commission;
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Professional consultation to clients at all stages of the deal;
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Wide network of partner banks for advising / confirmation of L/Cs;
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Different types of L/Cs to comply with customers’ needs.
Tariffs
|
Name
|
Commission
|
Min
|
Max
|
|
|
Import
|
|
|
Preparation of L/C draft
|
KGS 5 000 (subject to reimburse after L/C issuance)
|
|
|
|
Issuanceagainstcashcollateral
|
0.75% per quarter
|
KGS 15000
|
KGS 200000
|
|
Issuance against other collateral
|
Issue 0.5%
plus
interest rate up to 1.5% per quarter
|
KGS 15 000
KGS 10 000
|
KGS 100000
|
|
Amendment to L/C
|
KGS 10,000
Increase of the term or amount:
0.1%
|
KGS 10000
|
KGS 50000
|
|
Examination of documents (per set)
|
0.3%
|
KGS 15000
|
KGS 30000
|
|
Discrepancy fee (per set)
|
KGS10 000
|
|
|
|
SWIFT inquires (per message)
|
KGS 5000
|
|
|
|
Payment under L/C
|
As per Bank's tariffs
|
|
|
|
Confirmation fee
|
by arrangement
|
|
|
|
|
Export
|
|
|
Pre-advising of L/C
|
KGS 5000
|
|
|
|
Advising of L/C
|
0.2%
|
KGS 10000
|
KGS 250000
|
|
Advising of the amendment
|
KGS 5 000
|
|
|
|
Examination of documents and sending to the issuing bank if KICB is the nominated bank (per set)
|
0.5%
|
KGS 15000
|
|
|
SWIFT inquires (per message)
|
KGS5 000
|
|
|
|
Acceptance of documents and sending to the nominated bank
|
KGS 10000
|
|
|