Documentary operations

Documentary credit - is a written obligation of the bank on behalf of the purchaser (or on its own) to pay the seller the cost of documents subject to the conditions of the documentary credit. The advantage of a documentary credit is in the guarantee of fulfillment of contractual obligations for both buyer and the seller, as the payment occurs only after the actual shipment of goods or services and with the documents in full compliance with the requirements of the credit.

The conditions of documentary credit specify the conditions for transportation, insurance, and thus, the risks of not delivering the goods, supply of goods of inadequate quality, as well as insurance risks are removed.

VTB Bank (Azerbaijan) is ready to provide services on making international settlements in the form of documentary credit:

  • For imports - from the opening of letters of credit by the order of clients or confirmation of letters of credit opened by correspondent banks to the implementation of payments under these letters of credit;
  • For exports - from the notification of clients of the VTB Bank and correspondent-banks on letters of credit opened in their favor by foreign banks, receipt of commercial documents for payment, to receipt of payment from foreign banks.

Warranty - widespread and frequently used way to provide execution of obligations. Warranty is not a payment instrument, payment of the guarantee occurs in exceptional cases. Use of guarantees allows the customer not to pay in advance and make payment upon delivery or by installment.

Application of documentary forms of payments and their combination allows making of payment conditions, of both regional and foreign trade agreements more flexible, reliable and maximum convenient for trading partners.

VTB Bank (Azerbaijan) carries out guarantee operations in the following form:

For export operations:

  • For guarantees of proper execution of the contract;
  • For guarantees of return of advance payment;
  • For guarantees for benefit of customs authorities.

For import operations:

  • For guarantees of implementation of payment obligations on contracts;
  • For guarantees for benefit of customs authorities.

For guarantees not directly related to the conduct of export and import operations:

  • For guarantees for benefit of customs authorities.
  • For tender guarantees

Wide network of VTB Group abroad, including credit institutions and representative offices in Europe, Asia, Africa, in the territory of former CIS countries and an extensive network of correspondent banks, provide high quality and speed of settlements with any country in the world.