Trade financing (сorporate banking)

OJSC «Commercial bank KYRGYZSTAN» - one of the large banks of the country actively co-operating with a wide range of foreign partners in various directions that testifies to strong positions in the international financial circles. Such international recognition allows to receive guarantees, gives the chance to Bank of the organisation of financing of clients-importers by opening of accreditation for long terms, and also acknowledgement and executions of export accreditations and other financial tools (a guarantee, reserve letters of credit, the collection and others).

Any foreign trade transaction for the importer is interfaced to numerous risks:

• Debit risk — inability or refusal of the exporter to return the translated advance payment;
• Industrial risk — inability of the exporter to carry out of contract obligations for the technical or financial reasons;
• Political risk — political events or the measures of the state interfering performance of the contract (military conflicts, embargo, licensing);
• The risks connected with transfer of payments — introduction by the state (the country of the exporter) currency restrictions on transfer of payments on guarantees, or on return of advance payments;
• Risks of infringement of the currency legislation — penalties of bodies of the currency control for non receipt of the goods or a non-return of advance payments.

For minimisation of the above described risks of the importer and expenses under the foreign trade transaction of OJSC «Commercial bank KYRGYZSTAN» offers the clients the documentary form of calculations.

The universal and most widespread mechanism of the foreign trade calculations at import of the goods is the documentary letter of credit.

The basic advantages to the importer at the documentary letter of credit:

• The confidence of that payment will be carried out only against real shipment of the goods;
• Guarantee of delivery of the goods of appropriate quality and completeness, in the terms provided in the contract;
• Possibility of reception of lower procurement prices of the goods and longer term of their payments;
• Reception of postimport financing and preferential crediting;
• Essential reduction of the size of an advance payment under the import contract;
• Possibility of structurization of the scheme of payments under the contract taking into account the interests.

Moreover, using letter of credit forms of calculations provides high level of legal safety as letters of credit are subordinated to the International Unified rules which are obliged to carry out all banks guarantees reception of consulting services of highly skilled experts of Open Society «Commercial bank KYRGYZSTAN» in the field of the foreign trade documentary operations provides expert consideration of documents according to the international requirements.

The foreign trade activity of OJSC «Commercial bank KYRGYZSTAN» is directed on the fullest satisfaction of the external economic requirements of clients of Bank and serves interests of the country as a whole.