Letter of credit with post-financing for up to 3 years

Designated purpose of the credit
Bank customer’s performance of payment obligations under an import contract.

Requirements to the financial standing of the Borrower and security
According to current requirements of Bank of Moscow.

Import contract value
Preferably not less than 100.000, — USD or EUR.

Terms of payment under the import contract
Irrevocable Letter of credit of Bank of Moscow confirmed by a first class foreign bank payable against shipping or other documents confirming the Exporter’s performance of its contractual obligations.

Kind of the credit product
Credit to form the coverage under the Letter of credit opened for settlements under an import contract.

Credit period
Up to 3 years from the moment the Letter of credit is opened. The exact period is established after the foreign financing bank is defined.

Credit amount
Corresponds to the amount of the Letter of credit.

Credit currency
USD or EUR. As a rule the credit is made out in the currency of the contract.

Credit extension date
The credit is extended on the same day the Letter of credit is opened.

Documentation:

• Foreign trade contract,
• Credit request,
• Application for a Letter of credit,
• Credit Agreement,
• Security agreements.

The credit interest rate is established as follows

1. From the Letter of credit opening date (credit extension date) till the date of its complete use a flat rate of Х% per annum is charged on the unused amount of the Letter of credit. The interest rate includes the commission of the foreign bank for confirmation of the Letter of credit and the Bank of Moscow credit risk premium.
2. From the date of each payment under the Letter of credit till the credit repayment date a floating rate LIBOR*+Х% per annum (for credits in USD) or EURIBOR**+Х% per annum (for credits in EUR) is charged on all payments under the Letter of credit. The interest rate includes the commission of the foreign bank for confirmation of the Letter of credit and the Bank of Moscow credit risk premium.

* LIBOR (London Interbank Offered Rate) means the interbank offered rate for credits in US dollars extended to first-class borrowers in the international capital market.

** EURIBOR (Euro Interbank Offered Rate) means the interbank offered rate for credits in Euro extended to first-class borrowers in the international capital market.

Payment of interest
According to an agreed schedule, usually monthly. The LIBOR/EURIBOR rate is fixed for each 6 or 12 months two days prior to the beginning of each such period.

Repayment of the principal
According to an agreed schedule.

Additional commissions
Bank of Moscow commission for opening a Letter of credit can be included in the credit interest rate and not be charged separately.

The foreign bank commission for confirmation of the Letter of credit is included in the interest rate. The other commissions of foreign banks (for advising, inspection of documents, execution, etc.) are usually paid by the Exporter according to the Contract.