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Letters of Credit
 

The Bank provides to its customers short-term facilities to finance their trade activities. Such facilities can be used to finance the sale, purchase, import or export of goods, machinery or raw materials and spare parts etc.

Documentary Letters of Credit Against Cash Margin:

  1. The customer requests the bank to open a letter of credit according to certain conditions (the terms of the customer's original deal with the supplier).

  2. The bank requests the customer to deposit a sum of money to a maximum equivalent to the price of the goods to be purchased or imported, to cover the amount of the letter of credit.

  3. Based on this, the bank opens the letter of credit.  The settlement of the letter of credit is effected by utilising the amount of the margin deposited by the customer. The documents received under the letter of credit are then sent to the customer.

  4. The bank charges fees for its services. 
  Last Updated:02/11/2014
  About Al Baraka
Al Baraka Islamic Bank - Bahrain (AIB - Bahrain) established 1984 in Bahrain and up the years has pioneered the development of Isl... read more>>

  Individuals
Current Accounts: On demand accounts are not entitled to receive profits but do not bear any loss either. They are designed speci... read more>>

  Commercial & Corporate
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