Documentary Operations

The letter of credit is a widely used, reliable payment method which represents an irrevocable undertaking of the issuing bank to make payment to the person specified in the letter of credit, referred to as the beneficiary, against the presentation of a certain set of documents, complying with the terms and conditions of the letter of credit.

The advantages for customers when choosing the letter of credit compared to other payment methods such as advance funds transfers are:

  • The letter of credit provides the seller with the certainty of receiving payment after the fulfillment of the letter of credit terms and conditions;
  • The letter of credit provides the buyer with the certainty that the payment will be effected only upon the presentation of the stipulated commercial and shipping documents in case of full compliance with the documentary terms and conditions;
  • The letter of credit is one of the most commonly used methods of payment in international trade providing different options for the conclusion of import, export or mediatory commercial deals. It is a particularly suitable method of payment between counterparties that do not know each other well;
  • Letters of credit are regulated by unified international rules called "Uniform Customs and Practice for Documentary Credit", which provide for the interests of all parties under the letter of credit.

Offshore Reserve has highly qualified specialists in the field of documentary transactions who are at the customers' disposal to consult them on the preparation of the conditions of their letters of credit.

In its activity of letters of credit processing Offshore Reserve adheres to the "Uniform Customs and Practice for Documentary Credits", 2007 revision, publication No 600 of the ICC, Paris in conformity with the Bank's internal regulations and the common international banking practice.

In its nature the bank guarantee represents an irrevocable commitment of the Bank under which it undertakes in writing the obligation to pay to the person specified in the letter of guarantee a specific amount upon a claim and under the conditions stipulated therein.

Offshore Reserve issues all types of bank guarantees on behalf of its customers:

  1. Direct bank guarantees issued directly in favor of foreign companies;
  2. Indirect bank guarantees – a foreign correspondent bank issues a domestic guarantee in favor of a foreign company on the basis of a counter-guarantee issued by Offshore Reserve;
  3. Offshore Reserve receives and advises bank guarantees from abroad in favor of its customers;
  4. Offshore Reserve issues domestic letters of guarantee in favor of its customers on the basis of counter-guarantees received from foreign correspondent banks.

The most commonly used bank guarantees which Offshore Reserve processes are:

  • Payment guarantee;
  • Advance payment guarantee;
  • Tender letter of guarantee;
  • Performance guarantee;
  • Other letters of guarantee depending on the specific deal and customer needs.

Offshore Reserve has highly qualified specialists in the field of international bank guarantees who are at the customers' disposal to consult them on the preparation of the text and the conditions of their guarantees.

In its activity of international bank guarantees processing Offshore Reserve adheres to the "Uniform Rules for Demand Guarantees", 2010 revision, publication No 758 of the ICC, Paris in conformity with the Bank’s internal regulations and the common international banking practice.