STANDBY LETTER OF CREDIT Standby Letter of Credit (standby letter of credit) - is a written obligation of the bank (the issuing bank) to the beneficiary (seller, supplier, contractor) to make payment for the applicant (buyer, recipient of the customer) in the case that the latter's contractual obligations and the presentation of a written demand by the beneficiary payment. Standby letter of credit, issued by Bank Respublika, can be confirmed by first-class foreign bank, which gives the beneficiary a double guarantee of payment - from Bank Respublika and a first class foreign bank. WHAT IS AVAILABLE standby letter of credit? Standby letter of credit is most often available to provide performance guarantees of applicant to a beneficiary. Standby letter of credit is issued for a period (usually this period corresponds to the period of the contract or time of delivery of the contract) and may be terminated early (extended) based on the application order issuer and with the consent of the beneficiary. Standby Letter of Credit is available in addition to the contract for instructing regular payments to the beneficiary. Payments under the contract are carried out independently from the issue of instructing standby letter of credit. APPLICANT BENEFITS 1. The possibility of getting goods without payment 2. The possibility of getting goods on a deferred payment 3. The possibility of temporary use of the issuing bank's letter of credit in the case of a "guarantee" case and the failure to make a payment on time 4. Guaranteed by the issuing bank letter of credit, or a first-rate performance of a foreign bank obligations to the beneficiary 5. The possibility of early termination of the standby letter of credit in the case of implementation of the commitments to the beneficiary. ADVANTAGES OF BENEFICIARY 1. Double assurance of payment for the goods - from the issuing bank and the foreign bank 2. The rapidity of obtaining funds to back letter of credit in the case of non-execution of its contractual obligations 3. Possibility of shipping the goods to the time of payment with 100% payment for the goods OFFER THE STANDBY LETTER OF CREDIT Standby letter of credit is used in cases where one of the parties to the transaction wants to gain maximum assurance of contractual obligations by the other party. INTERNATIONAL RECOGNITION Standby letters of credit, as opposed to guarantees (which, as a rule, subject to the laws of the issuing country) are subject to the Uniform Customs and Practice for Documentary Credits (ICC Publication № 600) - an international instrument that is mandatory for execution. ADVANTAGES OF CONFIRMATION Standby letters of credit, confirmed by first class international banks, give the beneficiary 100% guarantee of payment for goods (works, services). The Beneficiary completely minimize their risks and ready to deliver the goods. A FAST AND CONVENIENT Standby letter of credit is opened in an application (standard A4 sheet), and within one (1) business day goes to first-class foreign bank (or the beneficiary's bank), which advises the standby letter of credit to the beneficiary. If desired by the applicant, standby letter of credit may be issued in hard copy to the applicant representative, sent to the beneficiary's bank through courier service or transmitted by the system Telex / SWIFT. A wide network of correspondent banks around the world can submit Bank Respublika standby letters directly to the beneficiary's bank in a matter of minutes. IT IS INEXPENSIVE For the applicant it is a single commission for opening letter of credit to beneficiary, the single fee for advising and (if necessary) for the processing of claims for payments under the standby letter of credit. IT IS A MODERN Recent studies by the International Chamber of Commerce confirm the steady increase in popularity standbys from the settlement of foreign trade transactions. Ease of use, transparency and availability of this type of calculation put the international relations with your foreign partners to a new level. FREE CONSULTATION The staff of the Office of International Business Development provides a free consultation on the set / adjust the foreign trade contracts, involving the use of a certain kind of international payments. If necessary, Bank Respublika staff can negotiate with the beneficiary under a standby letter of credit. The text of each letter of credit, produced Bank Respublika necessarily agreed with the beneficiary's bank / confirming bank. We will be glad to answer your questions! BANK RESPUBLIKA OJSC Department of International Relations 21 Khagani str., Baku AZ1000, Azerbaijan Phone: +994 12 598 08 00 (Sarkhanova Elnara), Fax: +994 12 598 08 80, e-mail: [email protected]