Letters of Credit |
|
For the purpose of providing quality support, HBOR provides to its clients customary instruments of foreign exchange transactions.
Documentary letter of credit is a payment instrument in international trade, when the bank, in accordance with the application and the instructions of the client (importer) takes over the payment obligation towards the exporter via its bank, and on the basis of complete commercial documents stated in the terms and conditions of letters of credit presented to the bank within the defined term.
- Documentary letter of credit for an import transaction (nostro) – issued on request of the importer, the importer's bank opens it and is obliged to payment upon the presentation of complete documents relating to the letter of credit by the exporter.
- Documentary letter of credit for an export transaction (loro) – letter of credit issued in favour of the exporter via its commercial bank that informs it thereon.
|
| Print |
|