K&H standby letter of credit

a letter of credit is an irrevocable undertaking by the opening bank to make certain payments when the correct documents are duly presented to it in time. It is a payment promise by a bank, the consequence of a commercial transaction.

  • the payment method offering the highest degree of security
  • an irrevocable commitment by the bank
  • a legal relationship independent of the underlying transaction
Please do not hesitate to contact the Trade Finance team of our Bank via e-mail on tradefinance@kh.hu email address or by calling +36 1 328 2654 !

details

  • it is subject to international regulations, unlike a bank guarantee, which is usually governed by national law
  • it allows the risk of the opening bank to be confirmed (that is, we can assume 100% of the bank and country risk)
  • you can choose from types similar to bank guarantees
    • commercial (payment of consideration for goods)
    • financial (repayment of a loan or an advance)
    • guarantees contractual performance
    • related to tender participation, etc.

who might be interested?

  • companies that want to avoid any misunderstanding arising from international law
  • companies required to provide a guarantee for an activity subject to a licence or permission
  • companies that wish to bolster the trust of their business partners

adapted to your needs

  • you do not need to tie up your funds as security related to foreign trade and other deals
  • your bargaining position and business image are improved by the Bank’s irrevocable commitment

conditions

General Terms and Conditions
General Contractual Terms and Conditions for Active Corporate Banking Services (Credit, Loan, Bank Guarantee, Letter of Credit and Financial Leasing deals)
Announcement for Corporate Clients
This information does not constitute an offer, its sole purpose is to raise awareness.  A detailed description and terms and conditions of the product, service can be found in the relevant client agreement, the General Contractual Terms and Conditions for Active Corporate Banking Services (Credit, Loan, Bank Guarantee, Letter of Credit and Financial Leasing deals), the General Terms and Conditions, and the effective Announcement for Corporate Clients, which can be viewed under 'documents' on this page. The Bank reserves the right to modify the terms and conditions. The Bank will decide on the accreditive facility amounts and the availability thereof as well as on the collateral required at its sole discretion, in accordance with its own policies. The Bank handles standby letter of credits in accordance with the current revision of the International Chamber of Commerce publication 'Uniform Customs and Practice for Documentary Credits' (UCP600), the 'International Standby Practices ISP98', as amended and and the relevant laws and regulations.