30% growth in vol­ume of LGs in H1 2017: KFH

Kuwait Times - - BUSINESS -

KUWAIT: Ex­ec­u­tive Man­ager Trade Fi­nance at Kuwait Fi­nance House (KFH) Ab­de­laziz Al­haqan said that the vol­ume of let­ter of guar­an­tees LGs trans­ac­tions of­fered by the bank surged by 30 per­cent in the first half of 2017 over the same pe­riod last year.

He added, in a press re­lease, that the growth is at­trib­uted to high end sys­tems, stream­lined pro­ce­dures and high cal­iber man­power at KFH that work tire­lessly to cover cus­tomers’ trade need with the high­est qual­ity. Al­haqan in­di­cated that 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 cus­tomers’ com­mer­cial needs and safety of their goods, en­sur­ing speedy com­mer­cial ex­change at most con­ve­nient time.

He ex­plained that KFH of­fers ser­vices and prod­ucts that sup­port im­port and ex­port op­er­a­tion with high stan­dard with ac­cu­racy and speed through a wide range of su­pe­rior correspondent bank­ing ser­vices.

He con­tin­ued: “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.

Ab­de­laziz Al­haqan

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