Trade finance

Bai-Tushum Bank offers the opportunity to effectuate documentary operations: letters of credit and guarantees, which are actively used to secure international trade settlements. The key purpose of such operations is to protect companies from possible risks, arising in the course of export and import operations.

In order to ensure the confirmation of any documentary operation in the global banking network, Bai-Tushum Bank has become a member of the EBRD Trade Facilitation Programme, which encompasses more than 100 issuing banks in 23 countries worldwide.

Trade finance advantages:

• Less expensive than other forms of financing
• Enables to efficiently avert the risk of delivery failure and/or of low quality goods delivery
• Significantly limits the threat of counterfeit/forgery as compared with advance payment
• Enables to build credit history with both resident and non-resident banks
• Creates framework conditions for the efficient management of one’s own funds
• Creates flexible framework conditions for structuring transactions and applying the methods of economic activities funding

The services for clients include the provision of free advice, as well as the engagement of Bank’s officer in negotiations with foreign partners, preparation of transaction scheme with the estimate of banking service cost and time required for transaction.

Relevant for import and export

If your company requires borrowed funds to purchase foreign goods or services, or if your enterprise imports or exports capital-intensive commodities, services or raw materials, you may find the following products helpful:

• post financed letters of credit and discounted deferred payment letters of credit, stand-by letters of credit

Documentary Letter of Credit [L/C] –  is a form of settlements, where Bai-Tushum Bank, acting on behalf of its CLIENT (importer/purchaser /applicant) assumes obligations to make payment to VENDOR (exporter/beneficiary) against the documents evidencing the shipment of goods or the fulfillment of works/services. At the same time, the bank acts as a mediator between the purchaser and the vendor, as the payment will be made through it following a number of operations.

• guarantees

Bank Guarantee –  is a written obligation of the bank to pay money to the lender of a person, on whose behalf the guarantee is issued, against written demand for payment submitted by the lender. The letter of demand or attachment thereto issued by the lender must specify the violation of the main obligation secured by the guarantee, which has been permitted by the person, who requested the issue of the guarantee.

Key types of bank guarantees issued by the Bank:

• Payment guarantee;
• Performance guarantee;
• Advance repayment guarantee;
• Quality guarantee;
• Bid guarantee

If you have any questions regarding trade finance, please call: (312) 905 805; (312) 905 791 or contact us by email: baitushum@baitushum.kg;  kanat.kurmanov@baitushum.kg