Letter of Credit

Documentary Credits or Letters of Credit are a payment instrument issued by a bank upon its customers’ request. The payment under a Letter of Credit is effected against presentation of the proper set of documents, which should be submitted in accordance with the terms and conditions of the Letter of Credit. Letters of Credit are a safer and more effective way of ensuring the payment in international trade transactions. They are not limited in covering only the payment of the trade of goods, but also services and the implementation of specific projects.

Letters of Credit are subject of the Uniform Rules for Customs and Practice for documentary Credits (ICC publications no.600). Our bank offers to our Corporate and SME customers

Issuance of Import Letters of Credit
Advising of Export Letters of Credit
Advising service from a specialized staff for Letters of Credit transactions
Import Letters of Credit are the Letters of Credit issued by Tirana Bank when its customers import goods or services from their respective partners. By this type of Letter of Credit, Tirana Bank offers its Irrevocable Undertaking on behalf of the applicant, to pay the beneficiary against presentation of the proper set of documents in full compliance with the terms and conditions of the Letter of Credit.

Export Letters of Credit: When our customers export goods or services, we suggest that the payment in their favor to be effected by Export Letter of Credit. In this case Tirana Bank receives the Letter of Credit in favor of its customers via SWIFT message or by a Letter from the importer’s bank (issuing bank).