Acceptance & Avalization
Acceptance& Avalization is a type of credit in which importer (drawee) can clear the goods without making payment but accepting the draft or bill of exchange (BoE) issued by the exporter (drawer). By avalizing a draft or BoE the importer’s bank will be liable for the payment. Thus the exporter has a chance to discount the draft or BoE and get the early payment.
Against a promissory note/draft/BoE which is avalized by our bank, an off-shore foreign currency loan can be extended through correspondent banks to finance imports and/or exports