Bank Respublika offers to clients financing of trade transactions from lines of credit from foreign banks opened for the Bank. Using inexpensive foreign resources allows for offering to clients attractive banking services that help conduct business more successfully and favorably.
Using such services provided to purchasers of goods allows for avoiding earmarking funds or making advance payments to the supplier of goods. Instead the issuing bank issues a letter of credit or guarantee, after which the supplier ships the goods to the purchaser. Thereafter, the supplier presents relevant documents to his bank (beneficiary’s bank), which pays for the goods and forwards the documents to the issuing bank. The issuing bank pays to the beneficiary’s bank and charges the paid amount to the purchaser of the goods. As a result, both the supplier and purchaser of the goods benefit.
Bank Respublika offers to corporate clients the following documentary foreign trade services:
Letters of credit
Bank Respublika offers to corporate clients a full set of Documentary Letter of Credit services.
How the Purchaser benefits by using a letter of credit:
How the Vendor benefits by using a letter of credit:
Bank Respublika offers the following types of guarantees to clients:
Close partnership of Bank Respublika with leading international financial institutions allows for providing clients with letters of credit and guarantees asserted by first class international banks.
Since 2004 Bank Respublika has been a member of the International Trade Support Program of the European Bank for Reconstruction and Development, which allows for opening lines in all large banks of the world. In 2005 agreements were reached with Bank Gesellschaft Berlin for long-term financing of supplies of goods and equipment from Germany to Azeri companies. Also, cooperation has been successful with CitiBank, Commerzbank, Deutsche Bank, Dresdner Bank AG, HSBC, Banco de Sabadel, Raiffeisen, Agricole, Societe Generale, Nordea, Savings Bank, Vneshtorgbank, etc. Guarantees and letters of credit issued by Bank Respublika are ascertained by over 600 first-class banks of the world.
To formalize trade finance transactions the client applies to the Bank. Following a preliminary interview with the loan officer he fills out an application for opening a letter of credit or guarantee, which provides information about the applicant, his business activity and financial position, goals and amount of the requested financial instrument.
The client needs to present to the Bank a contract with a foreign partner containing a provision regarding settlements by means of the letter of credit or provide for receipt of a bank guarantee. Upon completion of a preliminary review the application will be reviewed by the Bank’s credit committee and following approval the financial instrument will be provided.