Letters of Credit
The Bank communicates with its customers and guides them within their trade operations through providing indirect facilitations, in the form of Letters of Credit. The Letters of Credit (Inward and Outward) are considered as the most common means of foreign trade financing operations on an international level, due to its advantages such as the fast reporting and guarantee of repayment. It is one of the most common arrangements between international banks selected to finalize the international trade deals. This way insures the finalizing of such deals in accordance to the most recent international conditions and laws.
PIBC provides this service in all branches and offices; in distinction, superior speed and accurate way.
Procedures of issuing a Letter of Credit:
- The customer has to apply for a Letter of Credit, by providing all the needed certified documents related to this application (such as bills, invoices, contracts between the sources) and to sign on the conditions and required documents.
- The documents will be discussed with the customer, and then will be sent to the General Administration to approve.
- The application; provided by evidence documents; will be sent to the Central Bureau of credits to complete the procedures and then to send the SWIFT to the Correspondent Banking and to communicate it to the source abroad.
Procedures for reporting incoming Letter of Credit:
Regarding the incoming Letters of Credits, the bank shall be notified about such letters issued by banks abroad for the sake of our customer; whereas the department must notify the designated branch about such letters, whereas the branch then will notify the customer to proceed in the shipment operations by preparing the shipment’s documents, which must be sent to the Administration through the branch for auditing, then to be sent lastly to the correspondent bank to collect the amount for the sake of our customer.