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{"id":14610,"date":"2021-01-20T11:00:16","date_gmt":"2021-01-20T09:00:16","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=14610"},"modified":"2021-01-15T22:30:15","modified_gmt":"2021-01-15T20:30:15","slug":"use-of-letter-of-credit","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/use-of-letter-of-credit\/","title":{"rendered":"Burkovskaya A., Pavlenko V. Use of Letter of Credit Form of Settlements in Ukraine"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: G28; G35<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V24(2020)-06<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]<\/p>\n

Burkovskaya A.<\/strong>, Ph.D. (Economics), Associate Professor of Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-4158-1721<\/a>
\ne-mail:<\/strong> allaburkovskaya2010@gmail.com<\/a><\/p>\n

Pavlenko V.<\/strong>, Applicant for Higher Education, Management Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-9200-6770<\/a>
\ne-mail:<\/strong> pavlenkovolodimir78@gmail.com<\/a><\/p>\n

 <\/p>\n

Use of Letter of Credit Form of Settlements in Ukraine<\/h2>\n

 <\/p>\n

Annotation. Introduction.<\/strong> The current state of Ukraine’s development provides broad conditions for enterprises in world trade, so the question arises how to minimize the risks of trade operations. The presence of risks and an unstable external environment can lead to non-fulfillment of obligations by the parties to the contracts. Therefore, the study of the letter of credit system for services is relevant because it will be able to ensure minimal cost risk.<\/p>\n

Purpose.<\/strong> The purpose of this article is to study the letter of credit as one of the reliable mechanisms for payment of foreign trade operations, and its use in Ukraine.<\/p>\n

Results.<\/strong> The article examines and investigates the system of letter of credit and its use in Ukraine. The main regulations on the regulation of letter of credit calculations are considered. The main advantages of the letters of credit are defined. The main stages of letter of credit conclusion are systematized. The impact of scientific and technological progress on the simplification of letters of credit is considered. Systematized main types of letters of credit and their classification.<\/p>\n

Conclusions.<\/strong> Using a letter of credit as a method of payment for goods and services will minimize the risks of both the seller and the buyer. In turn, the reform of the National Bank of Ukraine will allow the letter of credit to gain popularity and possibly become the main means of payment for foreign trade agreements.<\/p>\n

Keywords<\/strong>: letter of credit; form of calculations; obligation of the parties; types of letters of credit; basic regulations.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Chernyshova, K. (2020). The role of the letter of credit form of payment in the implementation of international payments by banks of Ukraine.<\/em> Retrieved from : http:\/\/vvv.repository. hneu.edu.ua\/jspui\/bitstream [in Ukrainian].<\/li>\n
  2. Unified Rules and Customs for Documentary Credits : Rules of the International (2006). October 25. \u2116 600. Retrieved from : http:\/\/zakon0.rada.gov.ua\/laws\/show\/988_003 [in Ukrainian].<\/li>\n
  3. On approval of the Regulations on the procedure for authorized banks to carry out operations on documentary letters of credit in settlements for foreign economic transactions (2003) : Resolution of the NBU Board of December 3. \u2116 514 : Retrieved from : http:\/\/zakon0.rada.gov.ua\/laws\/show\/z1213-03 [in Ukrainian].<\/li>\n
  4. Documentary operations of Oschadbank : official website. (2020). Retrieved from : https:\/\/www.oschadbank.ua\/ua\/corporate\/KYC [in Ukrainian].<\/li>\n
  5. Letter of credit-tool of trade financing. (2020). Retrieved from : http: \/\/www.vivro.net\/blog\/Letter-of-Credit–A-Tool-of-Trade-Finance.<\/li>\n
  6. Rudnits’ka, R. & Tiukha, \u0406. (2013). Selection of the optimal form of payment in the management of foreign economic activity of food industry enterprises. Retrievedfrom\u00a0: http:\/\/dspace.nuft.edu.ua\/jspui\/\u00a0bitstream\/123456789\/13452\/1\/1.pdf [in Ukrainian].<\/li>\n
  7. Sysiuk, S. I. <\/em>(2011). Estimation of advantages of application of the letter of credit form of calculations in foreign economic activity. Visnyk ZhDTU.<\/em> \u2116 2 (56). S. 206-208 [in Ukrainian].<\/li>\n
  8. Basic commission rates of Ukreximbank JSC : official website https. (2020). Retrievedfrom\u00a0: https:\/\/www.eximb.com\/assets\/files\/download \/rates-documentary.pdf [in Ukrainian].<\/li>\n
  9. Basic tariffs for services provided to legal entities-entities in the implementation of documentary operations (corporate business). (2020). Retrieved from : https:\/\/www.universalbank.com.ua\/storage\/app\/media\/docs\/tarifi-z-261120191.pdf [in Ukrainian].<\/li>\n
  10. Tariffs of Raiffeisen Bank Aval JSC for letters of credit, guarantees and reserve letters of credit, collection settlements, promissory note transactions and other services for corporate clients: official website. (2020). Retrieved from : https:\/\/www.aval.ua\/storage\/files\/trade-finance-tariffs.pdf [in Ukrainian].<\/li>\n
  11. Verkhovna Rada of Ukraine (2001). About banks and banking activity in Ukraine with changes and additions : Law of Ukraine : Law of Ukraine. Retrieved from : https:\/\/zakon.rada.gov.ua\/laws\/show\/2121-14[in Ukrainian].<\/li>\n
  12. Verkhovna Rada of Ukraine (2018). About currency and currency transactions in Ukraine. Retrieved\u00a0from : https:\/\/zakon.rada.gov.ua\/laws\/show\/2473-19[in\u00a0Ukrainian].<\/li>\n
  13. The National Bank has modernized the procedure for banks to carry out letter of credit operations. (2020). Retrieved from : https: \/\/bank.gov.ua\/ua\/news\/all\/natsionalniy-bank-osuchasniv-poryadok-zdiysnennya-bankami-operatsiy-za-akreditivima [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 18 November 2020<\/p>\n

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    Burkovskaya A., Pavlenko V. (2020). Use of Letter of Credit Form of Settlements in Ukraine. Modern Economics<\/em>, 24(2020), 39-44. DOI: https:\/\/doi.org\/10.31521\/modecon.V24(2020)-06.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: G28; G35 DOI: https:\/\/doi.org\/10.31521\/modecon.V24(2020)-06 [\/vc_column_text][vc_column_text] Burkovskaya A., Ph.D. (Economics), Associate Professor of Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Ukraine ORCID ID: 0000-0003-4158-1721 e-mail: allaburkovskaya2010@gmail.com Pavlenko V., Applicant for Higher Education, Management Mykolayiv National Agrarian University, Ukraine ORCID ID: 0000-0002-9200-6770 e-mail: pavlenkovolodimir78@gmail.com   Use of Letter of Credit Form
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