Letter of Credit

A commercial letter of credit is a bank product allowing minimization of the buyer’s (bank client) and seller’s settlement associated risks.

The commercial letter of credit implies the bank’s commitment towards the seller to pay the sum specified in it on condition of due submission of the documents regarding shipment of goods and/or service. The bank pays the sum under the letter of credit solely on condition of seller compliance with all its terms.

A letter of credit opened by the bank may be approved by a foreign bank.


  • low interest rate within the term of the letter of credit
  • possibility to avoid advance payment
  • smaller risks associated with the international transactions
  • upon monetarization of the letter of credit, a pre-determined loan/credit line schedule (if required)
  • warranted payment to the seller and compliance with the contract terms of the goods or/and service acquired by the buyer


General Terms



Volume of the guarantee

On a case-by-case basis

Primary Collateral

  • movable/immovable property
  • monetary collateral - private money resources of a company /natural person
  • a deposit opened with Cartu Bank JSC in the name of a person

Additional Collateral

  •  personal surety
  • a third person’s(s) personal or/and corporate surety
  • pledge of the intangible assets


On a case-by-case basis

Frequency/schedule of interest payment

On a case-by-case basis

Notary certification

On a case-by-case basis

Compliance with the Letter of Credit

Upon compliance with the term of the letter of credit by the bank, the Client shall be obliged to meet the liability payable in the way shown below:

  • the client (buyer) pays in full the debt towards the bank.
  • drafting the credit/credit line schedule with a pre-agreed interest rate, payment term and conditions.