Documentary Letter of Credits
The letter of credit provides an opportunity to reduce the risks for both the importer and the exporterThe Bank has signed a number of agreements with leading international financial institutions, such as European Bank for Reconstruction and Development, Asian Development Bank and etc. Taking part in Trade Finance programs of the letters the bank has been granted by an opportunity to execute transfers with the banks of the countries joining the program expanding thereby the scope of cooperation.
0.2% min AMD 50,000
0.2% min AMD 50,000 per quarter
Contractual
Contractual
0.2% min AMD 50,000
AMD 55,000
AMD 55,000
AMD 50,000
AMD 70,000
0.2% min AMD 20,000, max AMD 50,000
in all the branches of the Bank, with the exception of ROSSIA-1, ARARATYAN, NAIRI MC branches
- The importer submits a relevant invoice/agreement/, which is studied by the bank in advance comparing with the issue terms of the letters of credit (currency, term, country).
- It should be noted that the Bank can issue letters of credit in USD, EUR and RUR, other foreign currency –per deal.
There are no minimum and maximum amount limits. - After the study of the letter of credit and a positive conclusion thereof, the Bank compiles a draft of the letter of credit to be issued and submits it to the Importer’s approval. At the request of the importer, it can be submitted to the approval of Exporter or to the bank of the Exporter.
- After prior agreement with all the parties, the Bank concludes an appropriate agreement with the Importer, freezes the the amount set by the letter of credit available on the relevant account and issues the letter of credit.
- The Notifying Bank notifies the Exporter about the letter of credit issued in the Exporter’s favor after receiving the letter of credit through SWIFT system. The Exporter, after the fulfillment of his/her obligations within the terms set forth by the letter of credit, submits the documents required by the letter of credit to the the Executing bank until the deadline specified in the letter of credit. The latter verifies the compliance of the documents with the requirements of the letter of credit and should they coincide, the previously frozen amount is unfrozen and transferred to the Exporter.
- The documents are sent to the Bank through special postal services. The Bank verifies the documents in its turn and should there be no discrepancy, sends them to the Importer.
- As an additional guarantee, the bank can also offer the approval of the letters of credit by the other leading banks.
- Should there be no sufficient monetary funds; the Bank may observe the provision of an appropriate coverage.
- Commissions to be charged when executing the transaction, including the commission fees of intermediary banks, are charged in AMD by the Bank calculated at the exchange rate set by the RA CB for the given day.
- Based on various consequences, additional documents and information may be required.
You are eligible to communicate with the financial institution through the means of communication you prefer- via mail or electronically. The receipt of information electronically is the most convenient. It is available round-the-clock, free form the risk of loss of paper information and ensures confidentiality.