The Standby Letter of Credit is an effective way of securing contractual commitments (used to protect companies against a variety of risks of default by counterparties).
Area of application:
Export of goods, services, work and intellectual deliverables.
A standby letter of credit can serve as:
- An advance payment guarantee
- A performance guarantee (export contract stipulating an advance payment)
- A tender guarantee
Advantages and opportunities:
- Reduction of contractual risks;
- High level of legal security (letters of credit are regulated by the unified international standards for documentary letters of credit, in contrast to bank guarantees, which are usually regulated by the legislation of the country where the issuing bank is located).
- In accordance with the Bank's catalogue of tariffs for trade finance transactions used in international settlements.
Terms of provision:
- Availability of a currency and settlement account at the Bank
- Execution of the transaction report (where necessary)
Moscow Bank - Trade Finance Operations Department