Trade finance

You should use the services of documentary letters of credit if you want to expand your business by concluding agreements with new suppliers of goods, or expand the sales area of manufactured goods by concluding new trade agreements with buyers in foreign countries.

Letter of credit is a form of non-cash settlement in which the issuing bank (and / or confirming bank) undertakes to pay the seller the amount of the letter of credit issued on the basis of the documents specified in the credit letter.

Benefits of using a letter of credit account:

payment for the goods is only made on the basis of documents confirming the correct shipment of the goods, taking into account the timing, quality and quantity of the goods;

Timely receipt of payment for the loaded goods by submitting documents to the bank for loading the goods in accordance with the terms of the letter of credit, not waiting for their actual delivery to the buyer;

Independent and thorough verification of documents submitted under the letter of credit by bank employees;

Reduction of political, economic and other risks of foreign trade;

in addition to the buyer's obligation to pay for the goods, the obligation of the issuing bank and / or confirming bank is assumed to pay for the goods in accordance with the terms of the letter of credit

The letter of credit opened subject to further financing.

Credit letter type	Uncovered approved letter of credit, opened subject to subsequent financing.
Purpose	Calculations for the import of goods
The amount of the letter of credit	determined by the terms of the Foreign Trade Agreement.
Credit letter currency	Foreign currency
Credit letter term	In accordance with the Foreign Trade Agreement.
Financing term	up to 36 months (based on the type of imported goods)
Source of funding	Credit lines of foreign financial institutions
The opening price	Corresponds to the bank's tariffs.
Changing the terms of the letter of credit	In accordance with the interest rate policy of the bank
The bank commission	Set individually for the project.
Security	• collateral or securities; • third party guarantee; • other types of collateral not prohibited by law.
The terms of payment of principal and accrued interest	Set individually for the Project
Borrower	Business entities
List of documents to be submitted	• All current founding documents • Certificate of state registration • Balance sheet; • Report on financial results; • Business plan; • Loan security documents. (If necessary, the bank may require other documents).

Covered import letter of credit

Credit letter type	Covered import letter of credit
Purpose	Calculations for the import of goods
The amount of the letter of credit	determined by the terms of the Foreign Trade Agreement.
Credit letter currency	Foreign currency
Credit letter term	In accordance with the Foreign Trade Agreement.
Commission for opening	According to bank tariffs
Source of funding	Credit lines of foreign financial institutions
Opening a letter of credit	According to the client's application for opening a letter of credit.
Change of conditions on the letter of credit	According to bank tariffs
The bank commission	According to bank tariffs
Security	Currency funds stored in the block account on letters of credit (22602 ...)
List of documents to be submitted	- Application for opening a letter of credit; - A copy of the import contract.

Export letter of credit

Credit letter type	Export credit letter
Purpose	Calculations for the import of goods
The amount of the letter of credit	determined by the terms of the Foreign Trade Agreement.
Credit letter currency	Foreign currency
Credit letter term	In accordance with the Foreign Trade Agreement.
Letter of credit notification	According to bank tariffs
Document verification when the bank is the executor of the notice	According to bank tariffs
Approval of the letter of credit (quarterly or in part)	According to bank tariffs
Application for payment, change of terms of letter of credit, cancellation (denial) of letter of credit	According to bank tariffs
Discount of letter of credit	According to the established procedure
List of documents to be submitted	Export agreement

Ipoteka Bank is one of the leading operators of the foreign exchange market in Uzbekistan. In particular, Ipoteka-Bank offers conversion operations with the most popular currencies with deadlines TODAY, TOMORROW and SPOT.

As a member of the Currency Exchange of the Republic of Uzbekistan and an active participant in the interbank foreign exchange market, Ipoteka Bank offers a wide range of conversion services to its counterparties and representative banks.

Ipoteka Bank actively uses the REUTERS-Dealing 3000 xtra information-dealing system.

Our quotations are regularly updated and fully in line with the current market conditions on the REUTERS system, which maximizes the efficiency of ongoing transactions.

Ipoteka bank has established cooperation with high-class foreign financial institutions and leading banks of Uzbekistan. Thus, working with all major currencies of the world, the bank ensures that conversion transactions are carried out in real time at the best quotes in the international foreign exchange market.

Cooperation with us guarantees an individual approach, flexible valuation of conditions and the opportunity to hedge currency and interest rate risks.

The main currencies in which conversion operations are carried out:

- US dollars;

- Euro;

- Russian ruble.

When conducting settlements on export-import operations, Ipoteka Bank acts as a currency control agent in accordance with the current legislation of the Republic of Uzbekistan, the main directions of which are:

- determination of compliance of export-import currency operations with the current legislation and, if necessary, the presence of registration certificates or certificates of notification;

- verification of the validity of payments;

- checking the completeness and authenticity of the account for export-import foreign exchange transactions.