When a letter of credit is confirmed it means that a foreign bank confirmed it, i.e. a foreign bank guarantees payment on a letter of credit. When issuing a confirmed letter of credit for the ordering party, it is necessary that ordering party provides a security at the moment of issuing.
Unconfirmed letters of credit are realized between partners having a long-term cooperation. In this case, the ordering party places a security when using L/C. On the letter of credit issuing date, the ordering party is obliged to submit a security instrument under the same terms and conditions prescribed for a loan approval.
The fee for opening letter of credit for legal entities having a monthly turnover of EUR 100,000 amounts 1.5% of the L/C amount and 1% for those whose monthly turnover exceeds EUR 100,000. Foreign bank costs are charged additionally.

Costs of the letter of credit modification amount EUR 30 + foreign bank costs.

 

Contact: 081/407 217, 407 277, 407 216