Irrevocable Letter of Credit in UAH

Irrevocable covered letter of credit in the hryvnia

It is difficult to completely eliminate risks in business. A vendor faces the risk of failure to receive payment from the customer for the delivered product; a customer runs the risk of failure to receive the product from the vendor. To reduce the above risks both parties are trying to establish additional guarantees and, therefore, introduce a bank into the agreement as a third party.

For this particular situation Raiffeisen Bank Aval offers a special product — irrevocable covered letter of credit in the hryvnia using which the businessmen can feel confident in a risk free nature of any business agreement.

Advantages of an irrevocable covered LC in the hryvnia

For the Vendor

payment in accordance with the documents is guaranteed by the Bank - not the Customer. This also covers cases of customer insolvency;
payment is initiated immediately after the bank receives documents that conform to the credit conditions;
the business risk of product rejection or refusal to pay for the delivered product is reduced to a minimum;
introduction of any changes into the credit agreement by the Customer requires the Vendor’s approval.

For the Customer

the payment takes place after the products have been received and the transaction documents checked by the Bank accordingly.
in case of incomplete delivery of the products, the payment is made for the volume delivered only.

Irrevocable Covered LC in UAH is available to:

Ukrainian residents — corporate entities and sole proprietors

More information about the Irrevocable Covered Letter of Credit in UAH:

currency - hryvnia;
maximum credit period — 1 year (from the date of credit opening till the last date of receiving documents certifying credit repayment);
maximum amount - 1,5 mil. EUR equivalent

Useful links

Core Perfomances of the Bank*

billion UAH
as at 31 March 2010
Paid-in capital	2,42
Equity capital	5,45
Assets	54,03

* in compliance with the Ukrainian accounting standards and NBU’s requirements

Exchange rates *

	Buy	Sell	NBU
$	7.870	7.910	7.893200
€	10.100	10.550	10.315623
Р~~уб.~~	0.254	0.264	0.261210

* update at 30.07.2010

$/€	0.7652
€/$	1.3069

Repayment of currency loans via self-service centers

USD	7.9100
EUR	10.4500