Letter of Credits

Letter of Credits

A banking service provided to customers in return for import and export of goods. Incoming and outgoing documentary LCs are one of the most common means of foreign trade finance worldwide in view of their advantages in terms of expedient notification, payment guarantee, safe arrival of goods, and fraud protection.

Service Description

A documentary LC is a financial undertaking issued by the Bank of Baghdad at the request of the importer to ensure payment of the price of the goods to the supplier, if there is agreement on certain conditions and criteria. The documentary LC usually includes a summary description of the goods, documents required for payment, shipment date, and payment deadline.

 

Advantages of opening documentary LCs at the Bank of Baghdad

  • The Bank of Baghdad offers all types of documentary LCs at competitive commission rates.
  • Speed of action and execution.
  • Providing a qualified and expert team to offer advice to protect your rights.
  • A network of correspondent banks for the Bank abroad.
  • Follow-up and supervision of the progress of the accreditation process and expedient payment.

 

Types of documentary LCs 
  • Import LCs.
  • Export LCs.