Standby Letter of Credit (SBLC)
SBLC is a bank commitment of payment to a third party guaranteeing payment on behalf of their client.
Bank Guarantee (BG)
BG means the bank commits to pay a specific amount to the beneficiary if the principal fails to furnish a guarantee for an agreed performance or payment. Guarantees are widespread across the globe and are used in domestic and cross-border transactions.
MT-760
MT 760 belongs to a category of SWIFT Message a type of inter-bank message used on SWIFT system to enable financial institutions can correspond.
Ready Willing and Able Letter (RWA)
RWA is a letter issued by a bank or financial institution on behalf of their clients. It demonstrates the intent and capability.
Trade finance instruments
The TFSP can be used to guarantee export/import transactions between IIB Member States and other countries. The following instruments may be provided by IIB under the Programme:
1. Irrevocable Reimbursement Undertakings (IRUs) can be issued by the order of issuing banks in favour of confirming and financing banks under:
► documentary letters of credit with payment at sight;
► deferred payment LCs;
► LCs with postfinancing/discounting.
2.Irrevocable Banking Guarantees/SBLCs can be issued:
► as securing of issuing banks obligations under LCs;
► under counter-guarantees / authorizations of partner banks to support importers, exporters or distributors from IIB member states;
► to partner banks as securing of trade related loans under trade contracts with IIB member states;
3. Counter-guarantees can be issued by the order of issuing banks in favour of other partner banks or exporters, importers and/or distributors.
4. Revolving credit facility
► Short-term Trade related loans to the banks exclusively for the purpose of pre- and post-shipment finance for the performance of foreign trade contracts with IIB member states.
5. Other trade finance products:
► IIB issues other trade finance products proposing its financing.