EBOR export L/Cs Trade Facilitation Programme

The European Bank for Reconstruction and Development (EBRD) supports the international trade by
means of issuing guarantees that cover the risks within business transactions financing (e.g. the Slovak
exporter sells a particular device to Russia, for instance, and agreed settlement instruction is L/C
confirmed confirmed L/C means that the confirming bank (VB) guarantees the L/C payment
together with the issuing bank (the Russian one).
Example:
The Russian bank opens a documentary letter of credit (DLC), advises of it via VB and requests its
confirmation. VB will confirm it on the basis of issued stand-by L/C whereby EBRD guarantees to
fulfil financial obligation of the debtor, i.e. the Russian bank, in case of its default.
Benefits to seller
L/C confirmation provides the seller with guarantee of both the local bank (VB) and the
foreign one.
Based on a confirmed L/C it is possible to carry out trades in countries listed below, which
without EBRD programme would only hardly be executable.
Legal protection through the international Uniform Customs and Practice for Documentary
Credits, issued by the International Chamber of Commerce in Paris as Brochure No.
600/2007.
How to proceed
1. Please contact Trade Finance Sub-department staff before concluding a contract and find out
which banks are accepted for this programme.
2. Trade finance Sub-department staff will provide you with a list of selected banks together
with an indicative cost of L/C confirmation, which may be included in the contracts final
cost.
3. The Slovak exporter will conclude a contract with payment instruction confirmed DLC (or
deferred maturity) issued by one of the selected banks (the list of selected banks is available
at request on the following e-mail address tradefinance@vub.sk).
Upon this the following steps will be taken:
4. Issuing (selected) bank will issue DLC and requests its confirmation.
5. DLC is advised via VB, simultaneously the issuing bank asks EBRD for stand-by DLC
issue in favour of confirming bank (VB).
6. EBRD will issue a stand-by DLC (the amount of which may be lower than the one of DLC).
7. VB will confirm DLC only when stand-by DLC is received and in case of deferred maturity
refinancing by VB (forfeiting) can be considered,
8. For further information please contact Trade Finance Sub-department staff.
Standard requirements
current account with VB,
issuing bank is included in the list of accepted (selected) banks for this programme,
payment of processing fee and L/C confirmation fee.
EBRD disposes of credit lines in the following countries:
Albany, Armenia, Azerbajdzan, Byelorussia, Bosnia and Hercegovina, Bulgaria, Croatia, Czech
Republic, Estonia, Georgia, Hungary, Kazachstan, Kyrgystan, Latvia, Lithuania, Macedonia,
Moldavia, Poland, Romania, Russia, Slovenia, Tadzikistan, Turkmenistan, Ukraine, Uzbekistan,
Yugoslavia.