Letters of Credit “LCs”
PIB communicates with and guides its customers for their commercial transactions through insuring indirect credit facilities in the form of Letters of Credit (L/Cs), whereas the inward and outward letters of credit are considered as of the most common arrangements used in financing external trading on global level because L/Cs have advantages in terms of quick reporting, ensure repayment and are considered as one of the most common arrangements between global banks that are selected to complete international trading transaction. This arrangement ensures that trading transactions are carried out in accordance with the most recent international terms and rules.
PIB offers this service at all of its branches and offices in outstanding, fast and super accurate way.
Applied procedures to issue a letter of credit:
- A customer applies at the branch to issue a letter of credit and provides all supporting documents for this request whether a price quotation, bill or agreement between the customer and the exporter and shall sign and execute the necessary conditions and documents.
- All submitted documents are examined with the customer, then the request will be directed to the General Management for approval.
- The application, attached with the administrative approval, is submitted to the central L/Cs Department in order to complete procedures, send swift to corresponding bank and notify the exporter abroad.
Applied procedures to notify for inward L/C:
With respect to inward L/Cs, we are notified about inward L/C when the corresponding bank abroad issues an L/C in favor of our customer. Then, the department, in return, notified this L/C to the concerned branch who will notify its customer in order to perform the shipment process, prepare its shipment documents which shall be sent to the management via the branch for purpose of being audited and sent to the corresponding bank in order to collect the value in favor of our customer.
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