OREANDA-NEWS. January 16, 2009. In the run-up to the New Year Holidays LLS “BTA Bank”, Moscow, had supported business of its customer, a popular Russian national monobrand network of hypermarkets of fashionable clothing MODIS, by issuing irrevocable unconfirmed transferable letter of credit (LC) with payment grace period for the amount of more than USD 15 mln. for financing purchase by the customer of goods from a number of South-East Asia states, reported the press-centre of BTA Bank.

About 60 suppliers of a number of South-East Asia states accepted direct risk to LLS “BTA Bank”, Moscow, which confirms the position of LLS “BTA Bank” in the international market as a reliable business partner.

Participation by CITIBANK N.A., Hong-Kong, as a transferring bank in the LC deal allowed a wider range of foreign banks, which are counterparties of LLS “BTA Bank”.

Due to the current unstable market situation and the limited nature of international banks’ credit policy, the use of such direct instruments of the Bank facilities more accelerated supplies of goods to customers of LLS “BTA Bank”, Moscow, as well as optimized settlements of the Bank’s customers with suppliers.

The transferrable LC is used as a settlement instrument in cases, when the buyer has payment obligations to one seller, which, in turn, by transferring the LC, pays to one or several subsuppliers. The use of the instrument allows the customer to execute deals on terms, which are favorable to it, with suppliers, which perform mediatory or agent functions.

In 2009 LLS “BTA Bank”, Moscow intends to continue improving and developing the practice of work with similar promising instruments of trade finance.