Letters of credit

is an irrevocable obligation of the bank (issuing bank), which opened the letter of credit by order of the applicant (buyer), to pay in favour of the beneficiary (seller) the amount stipulated by the letter of credit, provided the beneficiary submits, within the specified timeframe, the documents stipulated by the letter of credit corresponding to the terms of the letter of credit and confirming the shipment of goods (provision of services).

Benefits of the letter of credit form of settlement transactions

BENEFICIAL

Cheaper transaction compared to lending

PRACTICAL

The Bank acts as an intermediary in the settlements between the seller and the buyer

RELIABLE

Additional inspection of the package of shipping documents by Bank employees

CONVENIENT

Letter of credit - a separate agreement besides the sales contract

SIMPLE

The Bank fulfills only the terms of the letter of credit, under which it has irrevocable obligations, despite the fact that the letter of credit contains a reference to the relevant sales contract

CLEAR

The Bank fulfills the terms of the letter of credit (makes the payment) on the basis of verified proper submission of shipping documents

CONDITIONS FOR ISSUANCE OF LETTERS OF CREDIT

CURRENCY OF THE LETTER OF CREDIT

any currency that corresponds to the currency of the sales contract

AMOUNT AND VALIDITY OF THE LETTER OF CREDIT

corresponds to the sales contract

COLLATERAL

monetary coverage on the account with Piraeus Bank; other liquid collateral

Contact details

Bank’s Head Office Trade Finance Department:

Email: tradefinance@piraeusbank.ua

Telephone: +38(044)593-75-10

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