Documentary operations

Having a great experience in the executing of all documentary operations that are used in the world banking practice, in 2004 the Bank "Finance and Credit" under clients instructions realized a considerable volume of banking operations with the application of import and export letters of credit and different banking securities - tender, pay etc.

The Bank proposes to its clients the next forms of documentary calculations:

• irrevocable unconfirmed and confirmed letters of credit
• letters of credit with the delay of payment
• letters of credit with advance payment 
• c revolving letters of credit
• transferable letters of credit
• reserve letters of credit
• tender securities
• payment guarantees
• performance bonds
• advance payment guarantees
• import collection
• export collection

The Bank "Finance and Credit" executes the investment support of enterprises that have foreign trade contracts with American producers. This support is realizing due to funds of the American banks on the basis of guarantee and insurance which are provided by Export-Import Bank of the USA.

The year 2004 is characterized by the further growth of general quantity of the role of unconfirmed letters of credit that testifies in favor of increasing confidence of the foreign partners to the Bank as to a reliable financial partner.

According to the data available on 01.01.2005 the Bank executed a volume of documentary operations that is equal to a sum of 52,035 mln. USD. The volume of the operations with application of import letters of credit is 1,651 mln. USD, export letters of credit - 34,85 mln. USD. In 2004 the volume of the guarantees and securities furnished by the Bank is 15,534 mln. USD.

The Bank constitutes a part of the banks that are recommended by International Air Transport Association (IATA) for the IATA potential clients that permits to the Bank during several years to furnish guarantees in favor of airlines according to the tourist firms. 

In 2004 the Bank continued insurance arrangement for the tourist firms for its accreditation in the International Air Transport Association and in favor of the tourist firms and hotels abroad. The guarantees issued by the Bank are taken by such companies as Polskie Linie Lotnicze LOT, Gullivers Travel Associates etc. 

Because of corrective actions to the "Tourism Law" of Ukraine the Bank during 2004 presented guarantees for tourist firms in order to obtain a license in The Administration of tourism of Ukraine. The total sum of such guarantees issued by the Bank 1,5 mln. UAH.

Besides above mentioned the Bank issues blanking (without any security payment) guarantees for the tour operators including the further insurance of financial risks by the Bank in an insurance company.

The partners of the Bank in the framework of this program:

• IC "Ukrinmedstrakh" Ltd. 
• JSC "Ukrainian protective and insurance company"

The specialists of the Bank propose to the clients a wide variety of contract accompaniment services , consulting services for the documentary payments optimization and contracts adjustment according to the currency regulations of Ukraine and international rules UCP500, UCP525, ISP98 (ICC Publication 590), ICC Publication 458, and maximum effective execution of documentary payment instructions.

The Profits of the Bank resulting from documentary operations in 2004 increased in comparison with 2003 by 133,52%.