EN 
PL
Discount of the letter of credit is a form of Exporter's financing. BGK makes a payment in favor of the Exporter (the beneficiary of the l/c) prior to the date of payment established in the l/c. The amount due under the l/c is reduced by discount interest.
Discount is secured by an insurance guarantee issued byKorporacja Ubezpieczeń Kredytów Eksportowych S.A. (KUKE).
Only letters of credit with deferred payment option, both confirmed and unconfirmed, can be discounted.
Advantages of l/c discount:
- enhances attractiveness of commercial offer presented by Exporters,
- enables transactions in the high risk markets,
- enables adding confirmation to the letters of credit from the countries of non-marketable risk,
- access to the l/c proceeds prior to the date of payment established in l/c,
- provides deferred payment terms for Importers,
- Exporters become independent of contracting parties risk,
- there is no recourse to l/c beneficiaries.
Basic terms:
- deferred payment period - up to 2 years,
- discount of up to 100 % of l/c amount,
- seat of the issuing bank shall be located in a non-marketable risk country,
- the l/c is subject to „Uniform Customs and Practice for Documentary Credit", ICC Publication,
- only l/c's related to exports of products of Poland can be discounted
- l/c discount is available only for BGK customers
Costs:
- interest based on EURIBOR/LIBOR/WIBOR rates increased by a BGK margin - to be borne by the beneficiary of the l/c (Exporter),
- discount commission- 0,2% of the document's amount (instead of l/c payment commission)
- BGK's fees and commissions related to the l/c are usually covered by the l/c beneficiary as per BGK Tariff and Commissions Table.
