First Investment Bank

The letter of credit is a widely used, reliable payment method which represents an irrevocable undertaking of the issuing bank to make payment to the person specified in the letter of credit, referred to as the beneficiary, against the presentation of a certain set of documents, complying with the terms and conditions of the letter of credit.

The advantages for customers when choosing the letter of credit compared to other payment methods such as advance funds transfers and collections are: 

• The letter of credit provides the seller with the certainty of receiving payment after the fulfillment of the letter of credit terms and conditions;
• The letter of credit provides the buyer with the certainty that the payment will be effected only upon the presentation of the stipulated commercial and shipping documents in case of full compliance with the documentary terms and conditions;
• The letter of credit is one of the most commonly used methods of payment in international trade providing different options for the conclusion of import, export or mediatory commercial deals. It is a particularly suitable method of payment between counterparties that do not know each other well;
• Letters of credit are regulated by unified international rules called “Uniform Customs and Practice for Documentary Credit”, which provide for the interests of all parties under the letter of credit.

Fibank opens and processes documentary letters of credit in Bulgarian Leva and foreign currency by offering a wide range of documentary operations to its customers including:

• Import letters of credit;
• Export letters of credit;
• Transferable letters of credit;
• Arranging the confirmation of letters of credit by first-rate banks;
• Discounting of expected future receipts under letters of credit on completed export deals;
• Assignment of the proceeds of the expected future receipts under documentary credits.

Fibank has established a wide network of correspondent banks and services documentary credit transactions in almost all parts of the world.

Fibank has highly qualified specialists in the field of documentary transactions who are at the customers’ disposal to consult them on the preparation of the conditions of their letters of credit.

In its activity of letters of credit processing Fibank adheres to the “Uniform Customs and Practice for Documentary Credits”, 2007 revision, publication No 600 of the ICC, Paris in conformity with the effective Bulgarian legislation, the Bank’s interior regulations and the common international banking practice.