Summary
A transaction where banks purchase a bill of exchange or transport documents drawn under a letter of credit or export contract and provide financing to customers.
| Interest rate | LIBOR(determined by term and currency) + spread. The rate differs depending on customers' credit rating, term, LC/non-LC basis, etc. |
| Calculation of interest |
- Minimum : USD10 - Interest on purchase of export bills payable at sight [purchased amount x middle rate x interest rate (at sight) on purchase date (1-month LIBOR + spread) x No. of days spent for mail delivery/360 or 365] - Interest on purchase of export bills on deferred payment basis [purchased amount x middle rate x interest rate for the applicable term on purchase date (LIBOR by term + spread) x No. of days of the applicable term (one day inclusive)/360 or 365] * No. of days spent for mail delivery is 8 days except for the following: 1. Renegotiaiton of export bills : 4 days 2. When settlement currency of export bills is JPY, SGD, or HKD : 7 days |
| Payment of interest, etc. | To be collected in advance at the time of bill discounting |
| Reimbursement | Please refer to foreign exchange (export/import, etc.) transaction agreement. |
| Requirement of collateral | To be determined in the process of analysis on credit provision |
| Additional expenses |
1. Fee on purchasing export bills : KRW 20,000 per transaction 2. Postage : KRW 20,000 per transaction 3. Telex/SWIFTcharge: KRW 10,000 (when follow-up message is sent) 4. Others: Other fees could be incurred depending on process by overseas banks or type of transactions. |
| Limitations on transactions | Those who have overdue loans to Citibank Korea (including guarantee payments), have caused damage to the bank, have bad credit information, or have other reasons as provided by the bank may be subject to restrictions on foreign exchange transactions. |
| Interest in arrears (delay penalty) |
- Customers should pay interest in arrears (delay penalty) in the following cases: 1. If the purchased amount is not deposited by a buyer until the reimbursement date specified under foregn exchange transactions, or the principal is reimbursed as documentary bill of exchange is not accepted. 2. If interest and fees are not paid on agreed payment date, etc. |
| Review No. 1207-02-125 (Review Date: 2012.07.19) | |
The above-mentioned contents are effective until the notification on the end of product sale.
Inquiry & Consultation
- - Please contact the relevant branch for more details.
