Documentary Letters of Credit
Under documentary letter of credit (L/C) settlement, VTB:
- opens L/Cs upon request of its Customers and correspondent banks (if necessary, acknowledged by foreign banks) both in foreign currencies and Russian Roubles for settlements under foreign trade contracts;
- offers opening any form and type of L/C. Upon agreement between the parties, collateral for such L/C can be either proprietary funds of the Customer, or funds from credit facility extended by the Bank to the Customer for this specific purpose. More importantly, the Bank's customer can benefit from favorable terms for credits not only offered by VTB, but also raised from foreign banks;
- advises VTB Customers and correspondent banks of any L/C issued to their benefit and any amendment thereto with or without the Bank's confirmation;
- offers the whole spectrum of operations related to L/C settlement (including making amendment to existing L/Cs, checking documents, making payments under issued L/Cs and claiming payment under advised L/Cs, and crediting export proceeds);
- formalizes assignment of L/C proceeds;
- executes an L/C transfer;
- reviews, upon Customer request, terms of L/Cs advised by the Bank;
- offers consultations as to payment terms of a contract, assists in drafting documents;
- makes payment under reimbursement authorization of foreign and Russian correspondent banks under L/Cs issued by them;
- issues reimbursement undertakings upon request of correspondent banks;
- confirms L/Cs upon request of correspondent banks.
L/C Application Form
Recommendations as to filling out an L/C Application
International settlements in the form of documentary letters of credit shall be executed in compliance with the internationally accepted banking practices (Unified Customs and Practice for Documentary Credits, Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits, etc), VTB regulations and existing foreign exchange laws.
