SOMALIA LETTER OF CREDIT

SOMALIA LC ISSUING BANK CONFIRMING BANK CHARGES

SOMALIA LETTER OF CREDIT CONFIRMATION FEE

For Somalia, when an exporter has concluded a commercial export contract with a Somalian importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.

The Somalian importer will ask the Somalian bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.

For Somalia, the exporter must choose a confirming bank that has in its network of correspondents the Somalian bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.

A letter of credit issued in Somalia is usually confirmed by a big number of banks which are prepared to take the risks of Somalian banks and make sure the beneficiary of the LC or exporter obtain his payment.

LIST OF SOMALIAN BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS

  • Central Bank of Somalia

  • Al Barakaat Bank

  • Commercial and Savings Bank of Somalia

  • Somali Commercial Bank

  • Universal Bank of Somalia

  • First Somali Bank

  • Salaam Somali Bank

CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH SOMALIAN BANKS

Banks which are confirm the letters of credit issued in Somalia by Somalian banks are: (please contact us to obtain the list or to be listed as confirming bank).

SOMALIA: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A SOMALIAN BANK

Confirmation charges and fees for letters of credit issued through Somalian banks can be obtained on demand by emailing: info@tradefinance.africa.

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