IBEC expands portfolio of documentary operations
IBEC added confirmation on two letters of credit issued by Belagroprombank OJSC (Belarus) in favor of Russian suppliers of agricultural products. The total amount of letters of credit is more than 83 million Russian rubles (about 1.1 million euros in the equivalent). The use of the Russian ruble as transaction currency reflects IBEC course for more active use of member states currencies. Having ample opportunities for cross-country payments in national currencies, IBEC provides its clients with additional protection against exchange rate risks, reducing transaction costs and simplifying implementation of foreign economic operations.
Since the beginning of 2019, IBEC, together with Belagroprombank OJSC, has implemented a pool of credit and documentary operations in the amount of 6.7 million euros in the equivalent for a period of up to two years. In total, since the middle of 2018, when the Bank began to update its business profile and focused on supporting foreign trade, the total volume of joint projects exceeded 13 million euros in equivalent. They are aimed at securing contracts concluded by Belarusian companies with residents of the Czech Republic, Poland and Russia. Banks are also positive about trade contracts with counterparties from other IBEC member states. IBEC and Belagroprombank are determined to further expand the geography of cooperation and sectoral diversification of operations.
The cooperation of IBEC and JSC Belagroprombank is based on the use of a wide range of instruments: targeted trade loans, post-financing, acceptance letters of credit, issuance of reimbursement obligations and others. Joint projects are being implemented to support the supply of non-commodity goods – equipment, agricultural and chemical products, industrial goods, including for the petrochemical industry. Thus, Belarusian companies receive new opportunities for foreign economic activity in the territory of the IBEC member countries.