DOCUMENTARY OPERATIONS

A guarantee is a security instrument by which the Bank-guarantor undertakes the obligation to make payments up to the guaranteed amount at the request of the beneficiary of the guarantee, in the event of non-payment or non-performance of contractual obligations by the principal under the guarantee.

DINAR GUARANTEES

Bank issues the following RSD guarantees:

Payment guarantees

• Payment security guarantees;
• Customs guarantees;
• Loan repayment guarantees;
• Guarantee for securing deposits when participating in the privatization of companies in the process of auction or tender privatization;
• Aval (bill of exchange guarantee).

Performance guarantees

• Performance guarantee;
• Tender guarantee;
• Advance payment guarantee;
• Other types of RSD guarantees, counter-guarantees.

FOREIGN EXCHANGE GUARANTEES

In accordance with the applicable legal regulations, the Bank issues foreign currency payment and performance guarantees.

A letter of intent is an instrument by which the Bank declares that it shall approve one of its products (guarantee, loan, etc.) to the Client and assume a certain future risk in Client's operations (binding letters of intent), or that it shall consider the possibility of assuming a future risk in doing business with the Client (non-binding letters of intent).

For more information, please e-mail us at plasmani@posted.co.rs.

Letter of credit represents an irrevocable obligation that the Bank shall make the payment to the letter of credit user (seller - exporter) if the presented documents are in accordance with the letter of credit terms.

Irrevocable nostro documentary letters of credit

• Sight letter of credit;
• Deferred payment letter of credit;
• Revolving letter of credit for import of goods and services.

The letter of credit is opened under the following conditions:

• Full or partial foreign currency coverage, if the payment term is over 90 days from the day of delivery;
• Exceptionally, without coverage, if the payment term is up to 90 days from the day of delivery, upon submission of an adequate security instrument (mortgage, pledge on movable property, joint guarantee, bank guarantee, etc.) with the obligation to deposit a foreign currency coverage at least 5 days prior to payment deadline;
• Correctly completed Application for Opening a Letter of Credit;
• Correctly completed Order for Opening a Letter of Credit;
• Submission of status and financial documentation;
• Submission of pro-forma invoice or contract;
• Submission of other necessary documentation.

Loro documentary letters of credit

In its loro letters of credit operations, the Bank advises these letters of credit based on instructions received from the issuing, i.e. foreign bank.

The Bank also provides documentary collection services in accordance with the Uniform Rules for Documentary Collection, Publication MTK 522 (URC 522).

In accordance with the regulations on foreign exchange operations, the Bank may also perform the following foreign exchange operations:

• Buy or sell to a resident, or pay or collect claims and debts arising from foreign trade operations of residents (buying or selling debt);
• Buy from a resident a claim based on a loan granted to a non-resident, as well as take over a debt of a non-resident towards a resident based on foreign credit operations.

For more information, please call 011/ 3024-439, 011/ 3024-108.