Trade Financing

"BTA Bank" CJSC as a successor of "Ineximbank" has been providing services on financing of export-import operations for 8 years. The Agreement with EBRD signed in December, 18, 2000, on the development of the Trade Financing has already finished its working period. Under this Agreement our Bank has conducted more than 60 transactions of clients for $ 7146,7 thousand and € 578 510. After rebranding, our Bank has signed new agreements with partner banks. Trade financing line from "BTA Bank" JSC was opened in April, 2008, with head office in Almaty. Our Bank using the services of this line has exit to more than 600 banks all around the world. Authority of our partner banks allows to offer You solution of tasks of any complexity.

The core of the trade financing is use of international trading instruments such as letters of credit and guaranties.

1. Documentary letter of credit is an obligation the Bank undertakes on behalf of a client to pay beneficiary (goods seller) the sum stated in the letter of credit against submission of documents stated in the text of the letter of credit and complying its conditions during the period of time stated in the letter of credit.

In other words You make an Agreement with "BTA Bank" CJSC about our liability to pay for the shipped goods the sum, for which the letter of credit is concluded, as soon as your Partner (goods seller) submits all necessary documents: transport documents, custom documents, the documents confirming the shipping, the documents confirming quality and other characteristics of the goods. Transport conditions, goods security are discussed in the conditions of the letter of credit thus the following foreign trade risks are excluded:

Risk of goods non-delivery

Risk of delivery of low quality goods

Insurance risks

Two types of letters of credit are used in the world practice:

First type is a letter of credit opened on the documents submission; You (an importer) shall pay for the shipped goods during a week. Second type - with the payment delay. In case of use of letter of credit with payment delay, a buyer can get payment delay it means there is no necessity to withdraw money. It allows a buyer to save funds because a buyer can start selling the goods bought in credit way for trade or if it is equipment or components, start working and pay a part of the letter of credit with the money earned here. Thus letter of credit with delay is a kind of credit. the sum of the letter of credit will return after a certain term defined in the result of an agreement between a buyer and a provider. Evident advantage of the service is concessionary interest rate - about 12% per annum.

It is also possible to get confirmation of the letter of credit from another high-class foreign bank. In this case the bank undertakes the same liability as "BTA Bank" CJSC. It reduces the risks of your partner.

We are also ready to consult on the following settlement types - participation in the talks with foreign partners, making reliable and less expensive plan of the deal with calculation of approximate cost of banking service, terms of the operation and etc.

Thank to joining "BTA" group most of documentary operations are implemented directly with banks of our clients' contractors (without intermediary banks), that allows clients to minimize their banking commission expenses.

"BTA Bank" CJSC opens documentary letters of credit both in KGS and in foreign currency for its clients.

2. Bank Guaranties.

Any company negotiating on a conclusion of a contract, undoubtedly, would like to assure that another participating part will carry out its obligations. Bank guaranty is a popular and often used way of ensuring performance of obligation. Except it, in some cases Bank Guaranty is a condition of a client's participation in separate deals or operations (for example tender guaranty). In contrast to the letter of credit, the Guaranty is not a paying instrument; payment on the Guaranty is made in exceptional instance. Use of the Guaranty allows You not to make prepayment but to pay upon receipt of goods or with delay. It is also possible to get Guaranty from a high-class foreign bank under the instruction of our Bank.

Our Bank provides various types of guaranties, used in international practice:

Tender guaranties;

Contract performance guaranties;

Return of advanced payment guaranties and etc.;

"BTA Bank" CJSC offers the most profitable guaranty rates only 6-8% per annum charged upon property, and from 0,5% to 1,5% form the sum charged upon money. The guaranties charged upon money is given for one working day.

With all your questions concerning letters of credit and guaranties contact the Department of Documentary operations of "BTA Bank" CJSC: phone: 90-50-53