The Letter of Credit is one of the most commonly prescribed payment conditions in foreign trade contracts. It provides high level of security both for the buyer and the seller. The risk of a foreign trade transaction usually can be prevented or mitigated by involving a fiduciary. Usually this fiduciary is a bank. The Letter of Credit is a method of payment where, at the buyer’s instruction, the bank makes an irrevocable promise to the seller to make payment, provided that the seller submits the prescribed documents by the pre-determined deadline and the documents correspond to the conditions of the letter of credit.
Our key services:
opening prompt and deferred payment letters of credits, managing the documents, payment
advising – advising the beneficiary of the letter of credit, managing the documents received under the letter of credit, payment
Sberbank Magyarország Zrt. accepts orders for issuing a commitment (letter of credit, guarantee) only after a credit assessment and subject to the existence of proper collaterals. The provision of collateral is a precondition of fulfilling the order. The issue is made against the fee stipulated in the prevailing Terms and Conditions or in a specific agreement. Fees are payable in advance.
Sberbank Magyarország Zrt. handles the letter of credit transactions on the basis of the prevailing version – at present 2007/600 – of the Uniform Customs and Practice of Documentary Credits (UCP600) publication of the International Chamber of Commerce in Paris.
Should you need further information, our corporate client associates will be happy to assist you.
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