TRADE GUARANTEE

Usage

In response to the customers’ needs for trade financing, Yoma Bank has introduced the Trade Guarantee, a new service to meet their requirements.

The function and purpose of Trade Guarantee is to facilitate buyers and sellers of goods domestically with a more assured way of payment and delivery. 

When an agreement between Buyer and Seller is reached, the Buyer will apply to the Bank for the issuance of a Trade Guarantee to the Seller. This Trade Guarantee assures the Seller of payment directly by the Bank if all the terms and conditions of the agreement are in order. It also assures the Buyer that the goods contracted for will be delivered according to the agreement.

Trade Guarantee are negotiable instrument that can be used to further finance the payee’s cash flow if needed

From 1 month to 12 months and also can be further extended by calendar month(s)

Commission  

1 month   – 8  months            -            0.25% per month
9 months – 12 months            -            2.0%   fixed

Amendment Fees

Ks. 500 per amendment

Trade Guarantee Discounting (for Seller)

If the seller needs immediate payment, he can discount the Trade Guarantee to the Bank at 15% per annum.

Overdraft  (for Buyer)

Buyer can arrange with the Bank for overdraft facility to finance his purchases. The interest chargeable is as per the Interest Rate sanctioned by the Central Bank of Myanmar.

For more information please contact :-

Trade & Bill Department
FMI Centre, 7^th Floor 
Bogyoke Aung San Road
Pabedan Township
Yangon

Tel : 951-246799     951-246800
Fax: 951-243016

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