L/C Guarantee
With an L/C Guarantee, the bank's payment is assured. If the bank receives no payment from abroad, KUKE pays compensation. By taking on the risk from a bank, KUKE allows it to safely support its client’s export business on an even larger scale.
Benefits for bank
KUKE assumes a large part of the exporter's bank's risk
related to short-term financing.
Up to 100% cover
KUKE can issue a guarantee for up to 100% of the amount of secured debt due to the bank.
Fast–track procedure
guarantees are issued in accordance with bank limits previously specified by KUKE.
Irrevocable and payable guarantee
The guarantee is irrevocable and payable on first demand.
Eligibility criteria
- Extensive cover
- An L/C Guarantee covers an extensive list of countries (excluding EU Member States, Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland and the USA).
- Cover over lossess incurred by a beneficiary
- An L/C Guarantee covers losses incurred by a beneficiary of the guarantee as a result of its debtor's failure to settle due payments within the deadline specified in the L/C or the post-financing agreement, if the debtor's non-payment is caused by the materialization of a commercial or political risk.
- Credit up to 2 years
- The credit granted by the bank for the payment of amounts due resulting from the L/C in favor of the importer's bank must not exceed the period of two years. For agriculture products the maximum repayment term of 540 days is applied (WTO rules).
- Available also for foreign subsudiaries
- Not only Polish exporters, but also their foreign subsidiaries are eligible for L/Cs.
Do you have questions? Please contact us.
Sylwia Morawska
+48 603 230 587
Kinga Zychowicz
+48 605 251 057