Letter-of-Credit and Guarantee Operations

Based on its long experience in funding foreign trade operations, Erste Bank a.d. Novi Sad can provide you with all necessary information, advice and services.

Import Letters of Credit

With the approved import letter of credit, the customer is provided stability and safety in his business operations with foreign suppliers, as well as an efficient method of paying for delivered and imported goods.

Maximum amount

The value of the pro forma invoice made out by the foreign supplier and based on the customer’s credit standing

Period

Defined in the form (L/C opening order)

Main security

Adequate number of bills of exchange and contractual authorisations of the applicant

Additional security instruments

In accordance with the Bank’s credit policy

Repayment method

Defined in the form (L/C opening order)

Fees for opening the specific type of L/C and its confirmation

In accordance with the Tariff Regulation depending on the letter of credit (listed under “other”)

 

Foreign Currency Guarantees

At a request of the customer (applicant), the Bank issues guarantees to the guarantee beneficiary, depending on the character of the transaction for which it guarantees.

Maximum amount

Based on the credit standing of the applicant

Period

Up to 5 years

Main security

Adequate number of blank bills and contractual authorisations of the applicant

Additional security instruments

In accordance with the Bank’s credit policy

Currency clause

The Bank activates the currency clause of the protested bill with indexation in the currency in which the Bank effects payment under the guarantee

Other

The Bank issues all types of payment and performance guarantees

 

Dinar Guarantees

At a request of the customer (applicant), the Bank issues guarantees to the guarantee beneficiary, depending on the character of the transaction for which it guarantees.

Maximum amount

Based on the customer’s credit standing

Period

Up to 6 years

Main security

Adequate number of blank bills and contractual authorisations of the applicant

Additional security instruments

In accordance with the Bank’s credit policy

Guarantee type

Dinar with a currency clause

Other

The Bank issues all types of payment and performance guarantees

 

Bill guarantee is an additional form of the Bank guaranteeing for creditworthy customers the fulfilment of payment obligations (by means of a bill) to their suppliers.

Maximum amount

The amount of the bill which the Bank guarantees

Period

Up to 6 years

Main security

Adequate number of security instruments  n accordance with the Bank’s credit policy and Bank Collateral Catalogue

Bill guarantee type

Dinar

 

The Bank issues a letter of intent in which it undertakes:

  • to approve some of its products (e.g. issue a guarantee, approve a loan...) to the customer or to assume some future risk in the customer’s business (binding)
  • to consider the possibility of assuming some future risk in its business with the customer, which will be in accordance with the Bank’s credit policy and its estimate of the customer’s credit standing at the time of issuance (non-binding)

Types of letter of intent

Binding, non-binding

Maximum amount

According to the customer’s request

Period

Up to 12 months

Main security

1 bill in the case of fee calculation per letter of comfort issued