Letters of credit
One of the most popular forms of documentary operations offered by RRDB is letters of credit. It is the bank's obligation to pay the cost of the goods (services) to the beneficiary (seller), provided that the seller has submitted the bank with documents that are issued in full compliance with the conditions of the letter of credit. Documentary letter of credit – is a form of payment that protects the interests of both the buyer and seller.
In international settlements, a letter of credit with the provision of post-financing and with a deferred payment is also a trade finance instrument.
RRDB offers the whole range of services for international settlements and settlements in the territory of the Russian Federation in the form of the documentary letter of credit:
- opening of covered (secured by customer’s funds) revocable and irrevocable letters of credit (including transferable and stand-by letters of credit) in foreign currency and rubles with different methods of execution;
- opening of letters of credit with the provision of post-financing (for international settlements) with the attraction of credit lines of foreign banks established at RRDB, as well as from own funds;
- opening of letters of credit with deferred payment and discounting (for international settlements);
- establishment of limit for bank customers for the opening of uncovered letters of credit;
- advising and execution of export letters of credit, letters of credit for settlements in the territory of the Russian Federation, as well as stand-by letters of credit;
- confirmation of export letters of credit and letters of credit for settlements in the territory of the Russian Federation at the request of correspondent banks;
- structuring of non-standard and complex schemes using letters of credit, developing payment clauses for contracts and agreements, advising clients on the issue of shipping documents, analyzing the terms of letters of credit advised by RRDB.