EXIMBANKA SR introduced the export documentary letter of credit to Slovak exporters. It is a tool that can significantly help companies in the implementation of their business contracts and at the same time increase their competitiveness in foreign markets. The main purpose of this product is to support companies with limited opportunities in commercial banks. The launch of this product is based on the essence of the complementary role of EXIMBANKA SR and at the same time on the strategy within which it actively responds to the current needs of exporters and thus takes a flexible approach to its product portfolio.
The documentary letter of credit was presented by EXIMBANKA SR at an event organised in cooperation with the Association of the Security and Defence Industry of the Slovak Republic (ZBOP SR). The defence industry plays a significant role in the current security situation and the need for a documentary credential is linked to the geopolitical situation.
“We are aware that in the current market situation it is necessary to actively increase the competitiveness of Slovak companies through adequate tools and flexible adaptation of the product structure. The launch of this product also represents one of the objectives of our strategy – to proactively deliver solutions that reflect current market requirements. We are convinced that in this way we can build fair and effective forms of cooperation with our clients ” said Zuzana Kalivodová, Chairman of the Bank’s Council and Director General of EXIMBANKA SR.
The Association of the Security and Defence Industry of the Slovak Republic (ZBOP SR) appreciates the proactive approach of EXIMBANKA SR to expanding the portfolio of its products and services in export financing.
“Foreign payments are an essential part of export performance. We as exporters can’t do without a proper setup, without available and reliable payment tools. EXIMBANKA SR has shown that it is able to respond to the requirements of Slovak exporters of the defence industry also in the field of documentary letters of credit. I believe that the members of ZBOP SR will use the services of EXIMBANKA SR more and more in connection with the growing trend of export of defence industry products. ” said Tibor Straka, President of ZBOP SR.
Possibility of support also for specific sectors
The main role of EXIMBANKA SR in the context of the documentary letter of credit is to support companies from sectors where commercial financial institutions have limited possibilities to provide financing or services related to such financing. It is suitable, for example, for companies in the woodworking, engineering and defence sectors.
What benefits will exporters get?
A documentary letter of credit is one of the safest payment instruments because it is a commitment by the customer’s bank. It is used to pay for goods or services and provides many benefits to exporters and their foreign customers. For the exporter, the use of a documentary letter of credit is advantageous mainly because he is entitled to payment for the goods from the buyer’s bank after he has fulfilled all the letter of credit conditions. It thus protects the exporter against the risk that the foreign buyer will be unwilling to take delivery of the goods.