Documentary letters of credit

Documentary letters of credit

BBI bank is issuing letter of credit upon request of its client (importer-purchaser), whereby it undertakes to pay the value of presented documents to the letter of credit beneficiary (exporter-seller), if they are in accordance with conditions referred to in the letter of credit.

Documentary letter of credit, as the most credible and correct instrument of payment in international commerce, is protecting the importer and exporter in the transaction to the same extent. It completely eliminates the risk of non-performance of liabilities in international commerce and provides a complete and timely payment and delivery of goods.

Letters of credit are subject to regulations prescribed by the International Chamber of Commerce (ICC) in Paris. In accordance with Article 2 of Uniform Customs and Practice for Documentary Credits, letter of credit includes every agreement, regardless of the name or description, that is irrevocable and constituting a definite obligation of the letter of credit bank to honour a reconciled presentation. Honour includes the following:

• Pay on demand, if the letter of credit is available with demand payment.
• Assume the obligation for deferred payment and pay on the maturity date, if the letter of credit is available with deferred payment.
• Accept the bill of exchange submitted by the beneficiary and pay it on the maturity date, if the letter of credit is available with acceptance.

Bosna Bank International is issuing letters of credit to clients with already established business relationship. You can contact the Account Manager of your company in BBI Bank for the issuance of letter of credit.

BBI Bank can offer professional assistance in the case of completing the Application Form for the issuance of letters of credit, as well as during the review and preparation of required documents.

Commission for the use of letters of credit is calculated and charged in advance, on a quarterly basis. The Bank shall not make reimbursement of collected fee in the case that letter of credit is not completely utilised for any reason. The client shall bear confirmation expenses of the foreign bank and the cost of loro letter of credit confirmation is determined individually from the proposed scale, depending on the country risk and the Bank’s ranking – LC Issuer, deadline and LC amount.

Service prices are defined with the Tariff of Fees for Corporate Clients of the Bank. The Bank shall retain the right to change the Tariff for risky or more complex transactions.

• "Application Form for the issuance of letter of credit