Beneficiaries of documentary business products and guarantees are creditworthy clients:

• Dealing with export and import of goods and services
• Dealing with sale of goods and services in the country

Products included in documentary business and guarantees are documentary collection, letters of credit and guarantees.

Letter of Credit (L/C) is a payment and security instrument.

By issuing letter of credit, the issuing bank undertakes, upon its client's order, an irrevocable liability to pay and/or negotiate on the agreed date the submitted documents in favor of the beneficiary of the letter of credit, provided the presented export documents are in line with the terms of L/C wording.

This instrument provides safety, both to the buyer of the goods or services and the seller .

If you sell goods, render a service, participate in a tender, perform works, buy upon advance payment, design, install new equipment – in one word, if you are in business, we recommend you to secure your operations under guarantees.

Guarantee is a security instrument under which the issuing bank undertakes, at the client's order, an irrevocable liability to pay on demand the agreed amount to the guarantee beneficiary as reimbursement for any non-payment or non-performance by its client in favor of which the bank is acting.

There are various types of guarantees, such as:

• Customs guarantee
• Advance payment guarantee
• Bid bond
• Payment guarantee
• Loan repayment guarantee
• Retention bond
• Warranty bond
• Letter of Indemnity

In case the guarantee is covered with 100% deposit, the fee for processing of request is RSD 3.000 fixed, irrespective of the amount, while the quarterly issuing fee is minimum 0,6% p.a., max 1,6%, but not less than RSD 1.250.

In case the guarantee is covered with 100% deposit, the fee for issuing is 0,40% on quarterly basis from the guarantee amount and fixed amount of CSD 3.000 for processing of request