Documentary Letter of Credit

A Documentary Letter of Credit is a bank’s international payment instrument by means of which a certain amount of money is made available to a Beneficiary (Seller) by an Applicant (Buyer) through a Bank that becomes payable after certain terms have been met.

Documentary Letter of Credit:
  • Applicant (Buyer) – goods/services at disposal as set out in the Letter of Credit
  • Beneficiary (Seller) – payment of the Letter of Credit amount after evidence has been presented by it to the Bank confirming that it has met its obligations under the Letter of Credit
HBOR offers to its clients the opening of import documentary letters of credit with coverage from the funds of the granted loan. Clients have on their disposal advisory assistance from our associates on documentary business in the interpretation of the terms of the letter of credit and the necessary documentation required by the letter of credit and the clarification on international business practices required for the opening of the letter of credit.

The issuing of Documentary Letter of Credit is based on:
  •  documentary letter of credit opening order form dully filled in and signed by client
  •  invoice or commercial contract
  •  payment of the fee for the opening of the documentary letter of credit (if not covered by granted loan funds)
HBOR's fees for documentary letters of credit are calculated based on the Decision on Charges for Services performed by HBOR.

Application of rules for opening documentary letters of credit:

UCP 600 – Uniform Customs and Practice for documentary letters of credit ISBP 745 - Rules of the International Chamber of Commerce for Documentary Letters of Credit and International Standard Banking Practices Incoterms®2010 - Rules of the International Chamber of Commerce for Use of Domestic and International Trade Terms

 

Contacts

kreditiranje(at)hbor.hr

Strossmayerov trg 9, 10000 Zagreb

Urudžbeni ured nalazi se privremeno na adresi Zelinska 3