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