DəmirBank

DemirBank offers different services on trade financing on favourable terms for comfortable international trading operations between the buyer and the seller at minimum risks.

DemirBank actively cooperates with international financial institutions and foreign banks on trade financing. This cooperation enables the Bank to offer all types of documentary transactions (L/C, bank guarantees, collection of payment).

Letters of credit

Letter of credit (L/C) is an agreement between the seller and buyer, ensuring the payment of the amount indicated in the letter of credit to the seller on condition of delivery of goods, submission of required documents and fulfillment of other obligations.

Letters of Credits types

• Irrevocable L/C is a letter of credit that cannot be cancelled or changed without the consent of the recipient of funds and the issuing bank.
• Revocable L/C is a letter of credit that can be cancelled or changed without the prior consent of the recipient of funds and any liabilities of the issuing bank to the recipients of funds after the revocation of L/C.
• Revolver L/C is opened at the equal deliveries, stretched in time, with the purpose of decreasing the indicated amount.
• Cross/counter L/C is two separate, independent from each other letters of credit that constitute two parts of one transaction.
• Transferable L/C enables the seller to transfer the letter of credit or any portion of it to another seller.
• Reserve L/C is a documentary letter of credit that can be used by the beneficiary only in case of default on an obligation of transaction that he/she is a party of.
  

The Bank’s letters of credit are confirmed by the well-known international financial institutions. The trade finance lines of international financial institutions and foreign banks enable DemirBank to offer its clients trade finances on favorable terms. DemirBank offers its clients all types of services on the following documentary transactions:

• Export L/Cs
• Import L/Cs confirmed by the first class banks and unconfirmed import L/Cs (uncovered, post financed);
• On the territory of Azerbaijan DemirBank opens its clients the letters of credits both in manats and in foreign currency.
  Bank guarantees

Bank guarantee is a written guarantee of payment from the guarantor (Bank) on condition that the payment order and other documents listed in the terms of guarantee are provided.

Bank offers the following guarantees directly or through other banks:

• Tender guarantee or offer guarantee is a guarantee securing the liabilities of the participant to the tender organizer. The Bank-guarantor undertakes obligations to pay the guarantee amount to the beneficiary, if the applicant fails to fulfill the conditions of the tender.
• Execution guarantee is a bank guarantee that ensures the timely delivery of goods or provision of services according to the terms of contract.
• Advance guarantee is a guarantee which is used in security for fulfillment of obligations by the supplier of goods/works/services in case of their advance payment.
• Payment guarantee secures the payment obligation of the buyer.
• Customs guarantee is used for securing the payment of custom duties.
   

Collection transactions

• If the seller (exporter) and the buyer (importer) trust each other;
• If there is no doubts that the buyer is able and willing to make the payment;
• If the trading countries stand for political, economical and legal stability.