Trade finance letters of credit and bank guarantees. Trade and export finance

Get special conditions if you work with export agencies:

Reduced credit rate of 4.5% if your products meet State program support for industrial exports and subsidies from the Russian Export Center (REC)

Reduced loan rate, if any insurance cover Russian Export Credit and Investment Insurance Agency (EXIAR)

For exporters

Send money to production, and we will find a solution for financing it. If your contract with a foreign partner provides for a deferred payment, and the money is needed immediately, we will finance the deal at a discount.

Get special conditions if you work with export agencies:

A reduced loan rate of 4.5% if your products comply with the State Industrial Export Support Program and there are subsidies from the Russian Export Center (REC)

Reduced loan rate if there is insurance coverage of the Russian Export Credit and Investment Insurance Agency (EXIAR)

Promsvyazbank provides a wide range of services for arranging financing of export-import transactions for clients of partner banks:

• confirmation of export letters of credit issued by counterparty banks;
• issuance of irrevocable reimbursement obligations on behalf of counterparty banks;
• opening letters of credit on behalf of counterparty banks;
• issuance of guarantees against counter-guarantees of counterparty banks;
• provision of targeted interbank loans to finance export-import transactions of clients.

Financing is provided both on a short-term and long-term basis. Operations are carried out in freely convertible currencies, as well as in other currencies.

Thanks to net credit lines from major international banks, Promsvyazbank offers the most profitable terms on servicing foreign economic contracts of clients of counterparty banks.

The organization of international financing is one of the key areas offered to banks in Russia and the CIS countries. Among the main partners of Promsvyazbank are largest banks Republics of Belarus, Uzbekistan, Armenia and Tajikistan.

Promsvyazbank's market share in export letters of credit for Q3 2014 was 13.54%.

Promsvyazbank advises clients on issues of foreign economic activity and international settlements, optimizes settlement schemes for foreign trade contracts, minimizes the costs and risks of the client, and also assists in drawing up contracts.

Advantages of international trade finance in Promsvyazbank:

• the cost of trade finance is on average 20-30% lower than the cost of traditional lending;
• favorable rates and flexible rates;
• the possibility of using the lines of first-class foreign banks installed at Promsvyazbank;
• individual approach in determining the conditions for organizing cooperation and providing services;
• free information and consulting support for clients on the organization and conduct of any form of trade finance operations;
• extensive experience of successful work with the leaders of the national economy.

Promsvyazbank is:

• reliability and high business reputation;
• country credit rating;
• wide branch network;
• the best team of professionals, many years of experience in the field of trade finance and documentary business;
• flexible, client-oriented approach;
• customer service on highest level;
• Availability credit lines leading foreign banks in trade finance;
• the possibility of obtaining financing on the terms of the international financial market.

Trade finance is provided based on established limits for counterparty banks.
If the limit is not set, the transaction is possible on a covered basis.

Security:

• cash with the accrual of interest;
• securities (bills, bonds, etc.).

Tariffs of Promsvyazbank OJSC for operations with letters of credit subject to unified rules and customs for documentary letters of credit

Notes:

1. Uniform Customs and Practice for Documentary Credits - International Trade Commission Publication No. 600 2007 or latest edition these rules.






2. 
   
3. The tariff is applied if the bank receives documents that have not been verified by the confirming and/or executing bank.

Attachment 1
To the tariffs of Promsvyazbank OJSC for
operations with letters of credit subject to
unified rules and customs for
Documentary letters of credit

List of offshore zones to which paragraphs. 1.2.5., 2.1.2., 2.2.2.:

Antigua and Barbuda
- Commonwealth of the Bahamas
- Barbados
- State of Bahrain
- Belize
- Brunei - Darussalam
- Territories dependent on the United Kingdom of Great Britain and Northern Ireland:
Anguilla, Bermuda, British Virgin Islands, Montserrat, Gibraltar, Turks and Caicos, Cayman Islands
- Grenada
- Republic of Djibouti
- Commonwealth of Dominica
- People's Republic of China (Macau (Aomen))
- Republic of Costa Rica
- Lebanese Republic
- Republic of Mauritius
- Malaysia (Labuan island)
- Republic of Maldives
- Principality of Monaco
- Netherlands Antilles
- New Zealand: Cook Islands, Niue
- United United Arab Emirates(Dubai)
- Portuguese Republic (Madeira island)
- Independent State of Western Samoa
- Republic of Seychelles
- Saint Kitts and Nevis
- Saint Lucia
- Saint Vincent and the Grenadines
- USA: US Virgin Islands, Commonwealth of Puerto Rico, Wyoming, Delaware
- Kingdom of Tonga
- Democratic Socialist Republic of Sri Lanka
- Republic of Palau
- Principality of Andorra
- Islamic Federal Republic of Comoros: Anjouan Islands
- Aruba
- Republic of Vanuatu
- Republic of Liberia
- Principality of Liechtenstein
- Republic of the Marshall Islands
- Republic of Nauru

Tariffs of Promsvyazbank OJSC
on operations with letters of credit subject to unified rules and customs
for documentary letters of credit , , , ,
Tariffs come into effect from 04.04.2011.

Notes:

1. Uniform Customs and Practice for Documentary Credits - International Trade Commission Publication No. 600 2007 or the latest version of these rules.
2. These tariffs are the tariffs of Promsvyazbank OJSC, they do not include commissions of other banks and other expenses that are charged by the bank from the client additionally at the actual cost of the expenses incurred by the bank.
   These rates apply only to transactions carried out within the framework of the established banking practice. the bank reserves the right to charge special commissions for non-standard or rarely performed transactions as agreed with the client.
   the bank is not responsible for errors, incorrect or ambiguous interpretations, etc., which may arise due to handwritten filling in of document forms or due to filling in forms that are different from the valid forms of the bank.
   the bank is not responsible for possible adverse consequences associated with inaccurate indication of payment details by the client.
   All tariffs are paid (charged) on the day of the relevant operation, unless otherwise provided by separate paragraphs of these tariffs.
3. For letters of credit in the currency of the Russian Federation, containing a reference to subordination only to the unified rules and customs for documentary letters of credit, these tariffs apply.
4. Commissions are charged in the currency in which they are denominated in these tariffs or in the currency of the letter of credit.
   Commissions may be charged in Russian rubles or in any foreign currency.
   When accruing and collecting, if necessary, recalculating the size of the commission from Russian rubles into foreign currency; from a foreign currency to Russian rubles or from one foreign currency to another foreign currency, the exchange rates of these foreign currencies to the ruble of the Russian Federation, established by the bank Russia on the date of commission collection. The amount is recalculated using the rules of mathematical rounding to the minimum monetary unit the currency into which the conversion is made. The amounts of discrepancies resulting from rounding are not corrected.
5. In the event of a reduction in the term of the Letter of Credit, the remuneration paid by the client to the bank in accordance with these tariffs shall not be returned.
6. The commission is charged on the closing day of the letter of credit before its expiration upon receipt of the consent of the beneficiary and (or) the applicant to cancel the letter of credit.
7. The commission is charged at the time of the transaction at the rate of each quarter and/or part of it during the term of the letter of credit.
8. The tariff is applied if the bank receives documents that have not been verified by the confirming and/or executing bank
9. A set of documents means a one-time submission of documents related to one letter of credit under a single cover letter

Many trade finance instruments have been in use for hundreds or even thousands of years. Of course modern technologies will change this market, but the potential for financing trading operations using traditional tools is still very large.

LILY FIALKO, MAXIM RIZHSKY

Thousand years of experience

Approximately 4 thousand years ago, the first prototypes of merchant banks appeared in Assyria and Babylon ancient world. They loaned grain to farmers and merchants. In the Middle Ages, the Italians continued the business of merchant banks. Jewish settlers were involved in the trade, bringing ancient practices from the East. Techniques designed to finance long trade trips were applied to lending to grain production and trade.

Letter of credit, more precisely, similar to it financial instrument as early as the 11th century, the Templars offered. The merchant could deposit funds and receive a receipt in one of the branches of a wide " branch network"Templars. The receipt provided food and accommodation during the trip and allowed you to receive funds in local currency at the end point of the journey. In the 17th century, there was a similar product in France - a letter of credit. The merchant received from his banker a letter to the banker from the city where he was going, with request to pay a certain amount. The merchant's bank refunded the amount to the paying bank on a preliminary or subsequent basis.

Among the prototypes of the bill, one can note syngraphs and chirographs that arose in Ancient Greece and borrowed from the Roman Empire. In V??? century in China, bill-like feiqian securities arose. Among the Arab prototypes of the bill are the hawala and suftaj debt documents. Most likely, it was they who influenced the emergence in the X???-X?V centuries in Italy of the first forms of the bill itself.

Initially, the holder of the bill was forbidden to transfer rights to other persons. However, by the beginning of the 17th century, restrictions had become a deterrent to trade, and they were gradually abolished. Promissory notes began to be transferred by affixing a special order of the holder - endorsement (Italian in dosso - back, spine, reverse side; the inscription was made, as a rule, on the reverse side of the bill).

The Russian word "veksel" comes from the German Wechsel, which means "exchange", "transition". In Russia, the bill appeared at the beginning of the 18th century due to the development of international trade - at that time mainly with the German principalities.

trillion market

"The volume of world trade in 2013 amounted to $18.8 trillion, and the first quarter of 2014 showed an increase of about 4% year-on-year. Approximately 15-16% of this volume was settled using documentary letters of credit and collection, so the potential of the trade finance market is huge" , - says Tatiana Shalashnikova, head of the documentary operations and trade finance department of Raiffeisenbank.

Head of Trade Finance Department of Rietumu Bank (Latvia) Natalia Perkhova gives slightly different figures. According to her, in last years the volume of trade finance in the world was declining: in 2013 it amounted to $124.1 billion, 32% less than a year earlier. "This year has been very volatile for the markets, and, in all likelihood, following its results, we will see a continuation downtrend" she predicts.

According to Alexander Biryuchinsky, Deputy Head of the Department of Documentary Operations and Trade Finance at Gazprombank, “the main factors influencing the development of the global trade finance market are the level and volume of global trade, changes in regulatory approaches (in particular, the introduction of Basel III standards), and the widespread tightening of customer verification procedures. , the fight against the legalization of illegally obtained income, as well as the requirements to comply with sanctions restrictions."

The predominance of certain instruments in the trade finance market also depends on the situation in the global economy in general and in international financial markets in particular. "During periods of economic upswing in conditions of excess liquidity in the markets, instruments that allow you to simultaneously attract significant amounts of financing on long terms(issue of bonds, pre-export financing, etc.). In times of crisis, in conditions of tight liquidity and growing distrust in the markets, the role of development institutions, export credit agencies, and other state institutions acting as creditors or insuring the risks of other creditors increases. Transactions involving these institutions make it possible to raise long-term money on attractive terms even during times of crisis,” Biryuchinsky explains.

"In the context of global instability, many financial institutions limit or even completely curtail the direction of trade finance. Although we, on the contrary, see certain prospects and opening niches in this direction. Over the past five years, Rietumu has been purposefully developing trade finance, which allows us to successfully operate in this segment even in difficult times,” says Perkhova, adding that “at present, Rietumu is practically the only bank in the Baltic region specializing in this area.”

Crisis crisis, but in modern world An industry with a thousand-year history cannot stand still. Perkhova believes that "the world is striving to simplify and speed up settlements in international trade," and lists the main trends.

First of all, "in world practice there is a tendency to reduce settlements through letters of credit, transactions are carried out on a simpler, faster and more trusting basis." “Speed ​​is important, original documents are being replaced by electronic ones, email is used instead of standard mail,” says Perkhova. “In this situation, banks, which are conservative in nature and burdened with many regulatory procedures, should also follow this trend and be flexible, respond quickly and make decisions ".

In addition, "many private investment funds ready to finance international trade." "It's no secret," explains Perkhova, "that the value of deposit rates is very low and private investors are exploring other options for placing money at a more attractive interest rate. Such funds can afford more flexible approaches (including to various risks) demanded by international trading companies, and are becoming prominent players in the trade finance market."

Compliance has become much more important than before - compliance with the activities of trading companies, as well as the banks and financial institutions that finance them legislative acts and international sanctions. “Everyone is hearing a very recent story with the leader of trade finance, BNP Paribas, which was fined by the US government for financing trade transactions with countries under sanctions,” Perkhova recalls. “As a result, the bank that occupied a leading position significantly reduced trade finance activities."

Experts agree that the role of factoring operations is growing in world trade. According to Shalashnikova, "international factoring received a new impetus in development: in 2013, the growth in the turnover of the factoring market in the world amounted to about 8%."

Over the past five years, according to Shalashnikova, several new trade finance instruments have appeared on the market, "among which one can single out BPOs (bank payment obligations)." However, experts believe that cardinal changes in the set of trade finance instruments should not be expected yet.

According to Perkhova, the new tools will be of interest primarily to small and medium-sized companies. "Large corporations certainly have access to financial resources, things are worse with the availability of financing for smaller companies. Perhaps new tools should solve this very issue," she says.

Russian question

On the post-Soviet space Despite the fact that the narrowly known provision on promissory notes and bills of exchange was approved in the USSR in the 1930s, trade finance has been actively developed only in the last 20 years. However, even now in Russia it is not much different from the world.

“If we talk about the features of the trade finance market in the post-Soviet space, then, probably, it should be noted that they primarily depend on the specifics of the legislation and, accordingly, on the regulation of foreign economic activity in a particular country. But in general, I would not talk about which some global differences,” notes Shalashnikova. "In most post-Soviet countries, almost all the main instruments of trade finance are implemented. However, there are restrictions on products related to the peculiarities of local legislation (including currency)," Biryuchinsky believes. "For historical reasons, the trade finance market in the CIS countries is still relatively young. Domestic banks do not always use all the tools available in the arsenal of traditional trade finance banks with Western roots. Certain restrictions are imposed by existing currency regulation and the imperfection of customs procedures," Perkhova says.

According to her, "Russia now accounts for about 9% of the global trade finance market, according to the results of 2013, the volume of the Russian market is estimated at $11.8 billion." Shalashnikova notes that the Russian portfolio of trade finance transactions showed steady growth in 2013 and in the first half of 2014, even though foreign trade turnover in the Russian Federation in January-June of this year decreased by 2% (to $ 396 billion, exports remained at the same level, imports decreased by 5.4%. Here Perkhova is more pessimistic. "Following the results of 2014, we can expect a noticeable decrease in market volumes," she says. And Biryuchinsky adds that the Russian trade finance market is significantly influenced by geopolitical factors, including sanctions imposed on a number of Russian banks, companies and certain types products.

In general, Russia is an attractive market with growth potential, Perkhova is sure. "Classic trade finance is most often used in the trading of raw materials and commodities (commodities) that these territories are rich in. Another thing is that this potential can be realized if there are favorable political, economic and legislative prerequisites," she says. Although in the short term "more relevant is the issue of preserving achieved level volumes".

Basic concepts and tools of trade finance

Glossary

Trade Finance(trade finance) is an important element of foreign trade activity and trade operations in the country. It includes a number of instruments for financing and supporting sales, import and export transactions.

Trade finance instruments are divided into four areas: financing of trade operations in the country, financing of import deliveries, financing of export deliveries, settlements for international transactions.

For trade finance in the country instruments such as forfaiting, bills of exchange, bank guarantees and letters of credit.

For import financing you can use a loan guaranteed by the buyer's (importer's) bank, a loan from a foreign bank under the insurance coverage of an export credit agency, a loan from a supplier (exporter) under the insurance coverage of an export credit agency, a loan from a foreign bank to the buyer (importer).

For export financing you can apply forfaiting, international factoring, a bank loan under the insurance coverage of EXIAR (Russian Agency for Export Credit and Investment Insurance), a loan from Roseximbank (a subsidiary of VEB), pre-export financing under a supply contract.

For international settlements you can use covered and uncovered bank letters of credit, collection. Here, a letter of credit is used to reduce the commercial risks of delivery (non-delivery of goods, non-delivery of payment, etc.).

Letter of credit- the bank's obligation, accepted at the request of the client (payer / buyer), to pay a third party (beneficiary / seller) a certain amount upon presentation of documents that meet all the requirements of the letter of credit. The tool is convenient when the parties to the transaction are not ready to work on an advance payment or prepayment. The buyer can be sure that the bank will transfer funds in favor of the seller of the goods only upon receipt of documents proving that the seller has fulfilled the contractual obligations. The seller receives a guarantee that the bank will make payment for the delivered goods.

bill of exchange- a written obligation of a strictly established form, giving one person (the holder of a bill of exchange) the right to receive from the debtor under the bill of the amount determined by the document within the specified time. At promissory note the debtor is the drawer, in the case of a bill of exchange (draft) - another person indicated in the bill (drawee), which is the debtor in relation to the drawer.

bank guarantee- a guarantee for the fulfillment by the client of monetary or other obligations issued by the guarantor bank. In case of non-fulfillment of these obligations, the bank that issued the guarantee shall be liable for the borrower's debts within the limits specified in the guarantee.

Forfaiting— purchase by a bank or a specialized non-banking forfeit company of the rights to claim accounts receivable client (debts of enterprises to the client, expressed in current securities). The bank/company assumes the obligation not to demand anything from the client in the future if it is impossible to receive payment from his debtor and thereby assumes the risk of the latter's insolvency.

Factoring- complex financial services that a bank or factoring company provides to manufacturers and suppliers in exchange for the assignment of rights to a customer's receivables. Allows companies operating on a deferred payment basis to receive funds under already concluded contracts before the buyer pays for goods and services. Three persons usually participate in the factoring operation: the factor (factoring company or bank) - the buyer of the requirement, the supplier of the goods (creditor) and the buyer of the goods (debtor).

Pre-export financing- provision of funds credit institution to the exporting seller secured by confirmed orders from foreign buyers. Usually, the exporter enters into an agreement with the buyer for the latter to make payments directly to the credit institution.

Collection- a method of settlement between two parties, in which the exporter instructs his bank to receive payment or acceptance (confirmation that this amount will be paid) directly from the buyer (importer) or through another bank.

K.N. VILDEEV

TRADE FINANCING OF IMPORT OPERATIONS

Economic development Russia is at the stage investment activity, and for the business community, the most important issue is the choice of the source and scheme of project financing.

The state, for its part, creates favorable conditions for investing, in particular, stimulating enterprises in order to upgrade their fixed production assets by acquiring high-tech imported equipment by reducing import duties on the above group of goods.

On the part of banks, as the main participants in the financing of investment processes, an effective scheme for trade financing of import operations has also been developed.

Trade finance is the financing of clients' foreign trade operations by attracting credit resources from international markets. It is still considered one of the most dynamically developing types of banking business today.

Trade finance scheme (figure):

1. On behalf of a client, a letter of credit is opened in a bank to pay for a foreign trade contract, the execution of which is guaranteed by the importer with funds placed on a special coverage account.

2. Coverage is formed at the expense of credit resources. A special (reduced) interest rate is charged on the loan amount during the period when the loan funds are in the coverage account.

3. As a rule, the duration of the letter of credit, i.e. the term of payment for the goods, and consequently, and reduced rate, is not more than a year. However, in some cases, when stable relations have been established between the supplier's banks and buyers, the supplier's bank can independently pay for the delivered goods by providing the buyer's bank with a kind of credit in the form of a delay in the fulfillment of its obligations under a letter of credit. In this case, the borrower's funds remain in the security account, and the reduced interest rate continues to operate on the loan, increased by the rate of the foreign bank that granted the deferment.

4. At the end of the grace period, the bank makes a payment to a foreign bank, and the standard interest rate begins to accrue on the loan amount.

The demand for trade finance services is primarily associated with the "wear and tear" of fixed assets of Russian enterprises. In a growing economy, Russian companies in almost all market segments are experiencing a serious shortage of working capital and investment capital for sustainable development, wear production capacity catastrophic, and new equipment required quality it is almost impossible to buy in Russia. And here, in terms of both effective cost and timing, trade finance with the coverage of export credit agencies comes to the fore.

Trade finance can be short-term (up to a year) and long-term (usually from one to nine years). The short-term is mainly used by trading companies that purchase products for subsequent resale in Russia. There are four parties involved in the deal

a Russian bank and its client-buyer, as well as a foreign bank and its client-seller. A Russian bank attracts funds from a foreign credit institution to purchase goods for its client. At the same time, the foreign exporter settles foreign bank within limits opened for a Russian credit institution. After that, the Russian borrower returns the money to his bank, which, in turn, settles with a foreign partner bank.

Trade finance scheme

The main instruments used in short-term trade finance are documentary letters of credit and bank guarantees.

The letter of credit is opened for the buyer Russian bank, after which it is confirmed by a foreign credit institution. foreign bank pays the exporter the amount owed to him by the importer, but only after the seller has presented all Required documents provided by the letter of credit, for example, papers confirming the shipment and product quality, transport and customs documentation. With the help of letters of credit, the seller is guaranteed payment for the goods, and the buyer - its delivery, in addition, the buyer is insured against the purchase of products of inadequate quality.

The payment guarantee is provided to the exporter on behalf of the importer by a Russian bank and is confirmed by a foreign credit institution. In this case, only the risks of the seller are insured, and the buyer is provided with an installment payment.

With long-term trade finance, which is most commonly used Russian enterprises when purchasing expensive equipment, another party is involved in the transaction - the western export credit agency, which provides its guarantees to a foreign bank. In this way, western bank insures its risks when providing funds to a Russian financial institution, which, in turn, finances the purchases of its client. Export agencies are fully or partially owned by the state, their main purpose is to stimulate the export of goods and services. In order for the agency to agree to participate in such transactions, at least 50% of exports must come from its country. In long-term trade finance, both letters of credit and conventional credit schemes can be used.

First of all, trade finance is of interest to credit institutions as a tool for expanding the client base: the service attracts companies, as they get access to "cheap" and "long" Western money. Trade finance instruments allow banks to raise funds on much more competitive terms than other sources of liabilities, which has a positive effect on the efficiency of active operations.

The income that the bank receives from trade finance is comparable to the profit from loans. Margin from trade finance averages 4% per annum.

Other things being equal, the risks in trade finance are lower. This is due to the fact that financing is strictly targeted and, accordingly, when assessing the risk of non-return, it is realistic to analyze the possibility of selling imported goods and paying off obligations from the proceeds.

An added advantage trade finance for Russian bank is considered to have received international recognition: the creation credit history on the world financial market and integration into the system of international credit and financial relations. This line of business is widespread abroad, and the growing presence of Russian credit institutions in it has a positive effect on their perception by foreign partners. As a result, the number of transactions in other areas, in particular syndicated lending, is also growing.

However, it is not easy for Russian credit institutions (especially small and medium ones) to establish partnerships with foreign banks and export agencies. Foreign banks are very conservative in setting risk limits for our credit institutions. This is due to undercapitalization banking system Russia, the events of 1998, the crisis of 2005 and the tightening requirements of the international financial community for the purity of operations.

In connection with the assignment of an investment rating to Russia by the leading international agencies many foreign financial institutions began to view cooperation with Russian partners more positively. Russian market for foreign banks provides a good opportunity to earn. Against the backdrop of favorable macroeconomic factors foreign banks more and more actively credit limits on their Russian colleagues. The main players in this market are Commerzbank, Dresdner Bank, Bank Geselschaft Berlin, ING, Raiffeisen Zentralbank, Sampo Bank, Banco Bilbao Vizcaya Argentaria, BHF, The Bank of New York, Bayerische Hypo-und Vereinsbank, Rabobank, UBS and Banca Nazionale del Lavoro .

Another factor hindering the development of trade finance in Russia is the lack of transparency and precarious position Russian companies. Gray schemes of import-export of goods significantly slow down the development of trade finance. The problem also lies in the imperfection of legislation in the field of regulation of internal documentary operations. One of the main problems is the lack of awareness of customers about the existence and benefits of this service, which is why many companies are unwilling to conduct additional negotiations with their counterparties about the use of documentary forms of payment.

For companies that do foreign economic activity, trade finance is beneficial due to lower interest rates(by 2-4 percentage points). The cost of trade finance for a client is usually 8-10% per annum in foreign currency.

those including all commissions. For comparison: conventional loans in foreign currency, according to various experts, are now issued at 13-16%.

Most companies have turned to trade finance due to lack of working capital. Replace the liquidity deficit with expensive resources in the form of short-term loans becomes ineffective as the trading margin is constantly decreasing due to high competition. As for investments in production through short-term loans, they lead to a "washout" of working capital and the creation of a "pyramid of re-lending", which can cause a crisis in a company with a promising business and even make it a victim of a hostile takeover.

Trade finance is more secure. Delivery of goods and settlements are carried out under double control: on the one hand, by a Russian credit institution, on the other, by a first-class foreign bank.

By and large, any company that is engaged in foreign trade activities can use the services of the TF. It can also be a dealer (for example, commercial network), and manufacturing enterprise. The main limitation is the amount of the transaction. It is advisable to use trade financing when the volume of a single supply exceeds $100,000. Banks are unlikely to be interested in amounts below $100,000 due to low profitability.

Thus, the main advantages of the trade finance scheme are as follows:

for the importer:

Full payment to the equipment supplier is made only when all the conditions of the foreign trade contract are met (for example, after shipment/delivery of goods in strict accordance with the range, quality and agreed terms, or after installation of the equipment and commissioning of the facility, or after the expiration of certain period from the beginning of the operation of the equipment);

The opportunity to demonstrate to partners their competence in the field of organizing settlements for international trade transactions;

Confirmation of one's solvency among foreign counterparties, i.e. obtaining a public history in the field of foreign trade;

Significant reduction in the cost of financing the purchase of equipment compared to conventional lending;

for the exporter:

Guaranteed payment for the delivered goods under the conditions of a foreign trade contract;

The ability to provide products to a wider range of buyers, integrated into the international settlement system, without increasing the risk of non-payment.

VILDEEV KONSTANTIN NIKOLAEVICH was born in 1981. He graduated from the Chuvash State University. Postgraduate student of the department economic theory Chuvash University. Author of 4 scientific articles on economic theory.