Pivdenny Bank avalises the following types of bills:
Tax voucher – a simple bill certifying the unconditional monetary obligation of the drawer of the bill to pay to the Ukrainian state corresponding amount within the term defined and in the manner prescribed by the Tax Code and other legislation of Ukraine.
Commodity bill – a simple or negotiable bill issued to formalise a debt for goods delivered or works/services performed.
Bill avalisation is required to:
- Ensure a company’s compliance with the legal requirements when dealing with goods subject to duties.
- Provide additional guarantee of payment under the bill.
How does it work:
- One party issues or acquires a bill of exchange in favour of a counterparty signifying a financial obligation
- The first party asks the bank to guarantee the bill of exchange
- If the bank approves the request, the bill is guaranteed and returned to the requesting party
- This party can then transfer the bill with the bank guarantee to his counterparty
- This way the bank has effectively guaranteed payment of an obligation.
To get a bill avalised, submit an application via the site. A specialist from our bank will contact you to agree on terms and conditions, including the required documents. Or, you can visit the nearest bank branch or contact the corporate business projects unit manager.
Advantages of bill avalisation:
- A bill guaranteed by the bank is more reliable and secure.
- The funds remain available for use.
- Less expensive than a loan (interest rates on bill avalisation are significantly lower than interest rates on loans).
- An effective tool to pay taxes and duties.
- The drawer of the bill can receive the goods/services “today” with a deferral of payment.
- The guarantee does not lose effect if the obligations secured by it are invalidated unless the bill itself is invalid.
Fees for a bill avalisation:
against cash coverage/pledge of property rights to a deposit — from 1.2%;
pledge of movable property (excluding goods in circulation)/real estate — from 3.5%;
other pledge - from 4.5%;
One-time fee for execution of a bill — from UAH 100 per avalised bill.
fees for a bill avalisation transaction – from 1.0%;
one-off remuneration for execution of a bill — from UAH 100 per avalised bill
fee for amendments to the agreement initiated by the drawer from UAH 500
How do I apply?
Contact your personal manager
for existing clients of the bank.
Submit your application and our manager will contact you to schedule an appointment.