IBEC – new instruments and new partners in the field of trade finance
IBEC for the first time acted as a reimbursing bank under a letter of credit of Golomt Bank (Mongolia). The pilot transaction is being implemented under the Agreement, signed in June this year by IBEC Chairman Denis Ivanov and President of Golomt bank Ganbold Galsan, and is aimed at facilitating the procurement of automotive components from Japan to Mongolia.
The uniqueness of the transaction also lies in the fact that the leading German bank Commerzbank AG acted as the confirming bank for the operation. This is the first transaction when a large bank from the European Union takes the risk of IBEC. Despite the fact that the letter of credit does not exceed 1 million US dollars, the operation is representative both through the lens of business geographical diversification, and in the context of expansion of the trade finance instruments used by IBEC. This allows a more flexible approach to the requests of the bank's customers, ensuring the effective development of foreign trade both among IBEC member states and with the participation of business partners from third countries, which fully complies with the Bank's mandate.
IBEC Chairman Denis Ivanov notes the significance of the transaction for all the participants: “We are pleased to see Commerzbank AG - a bank with extensive experience in the field of trade finance - among our partners. The potential of our cooperation is very high, and we will continue to work on joint implementation of new transactions using various instruments. IBEC also welcomes the operational start of the practical implementation of the concluded Agreement with Golomt Bank on trade finance operations. We are confident that this transaction will serve as a great start to the further active development of the documentary business with partners of the Bank.”
The unique capabilities of IBEC as an international financial institution with settlement functions provide the IBEC’s clients with settlement schemes that are comfortable in terms of efficiency and reliability and optimal in terms of time and financial costs.