KFH: 46% growth in value of LC for financing of trade in 2017
KUWAIT: Executive Manager Trade Finance at Kuwait Finance House (KFH) Abdelaziz Alhaqan said that the growth in the value of Letter of Credit LC for the financing of internal and external trade amounted to nearly 46 percent as of end 2017 compared to the same period of the prior year, while the value of export credits grew by about 31 percent for the same period.
Alhaqan added in a press release “This growth is due to the success of the bank’s efforts in developing the letter of credit LC opening service and the bank’s strong track record of experience in playing the role of intermediary between the seller and buyer while providing financing channels suitable to the requirements of customers in several sharia-compliant forms.” He emphasized that KFH is keen on developing financing channels for balance of trade.
Moreover, he illustrated that the volume of letter of guarantees LG transactions offered by the bank surged by 14 percent in 2017 over the same period prior year. 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.