KUWAIT CITY, Nov 16: The volume of documentary credit and letter of guarantees transactions offered by the Trade Finance Department at Kuwait Finance House (KFH) increased by 23 percent and 79 percent respectively as of the end of the third quarter of the fiscal year 2015 over the same period last year. This increase is attributed to high end IT systems, streamlined procedures and high caliber manpower at KFH that work tirelessly to cover clients’ trade need with right technical international standard.
Encountering the increasing volume of documentary credit and letter of guarantees transactions, KFH adopts best practices and highest standards at the level of its human resources and systems in an attempt to ensure outstanding performance whilst safeguarding clients’ commercial needs and safety of their goods, ensuring speedy commercial exchange at most convenient time, not to mention the ability to highly reach any place around the world through expanded correspondent bank network with the recent up-to-date communication technology.
KFH presents services, which support import and export operation with high standard with accuracy and speed through expanded network for international banking correspondence with large experience in this field and its products. The products that KFH offers in Trade Finance are Letter of Credit by Sight which creates security for merchants for importing goods or supplies it in the local market, letter of credit on acceptance basis: It is a kind of LC, which gives importer to settle the draft to the beneficiary after receiving the goods or documents in Kuwait against acceptance present range from 60, 90 or as usage period agreed.
KFH also offers Murabaha where KFH imports goods in its name and in its own risk in which the customer willing to import goods such when goods arrived KFH enables customer to buy it with an agreed profit to be settled in in installments suitable with customer cash flow. Moreover KFH offers export L/C, which helps in activities of the foreign export and support local products as KFH can advise this L/C to exporter and added their confirmation in case it is needed. As exporter will present to KFH documents comply with L/C terms and he can get value of goods exported as per L/C terms.
As for letter of guarantees, KFH issued various types of guarantees which are suitable for different types of projects either tender, performance or advance payment and or maintenance contract and so on and also for personal guarantees like telephone and others.
KFH offers bills for collection in which KFH acts as a mediator to deliver documents to companies, individuals, or institutions as per the instructions received along with these documents.
It is worth noting that advanced projects are under implementation. These projects aim at enhancing services and achieving a quantum leap in the modus operandi of the Trade Finance Department. KFH will unveil these projects once implemented.