CONTINUING BANKING EDUCATION TRAINING PROGRAMMES

TRADE FINANCE INSTRUMENTS: MODULE I Duration: 2 days OBJECTIVES Upon completion of the programme, participants will be able to: • Understand the operating procedures in handling collections. • Identify the types of credits and how to issue, advise and confirm credits. • Understand the significance of the documentary requirements and the terms and conditions in the credits. • Examine different types of documents presented under documentary credits. • Apply the provisions of the UCP 500 in practical handling of credits. CONTENT (i) Collections    • Introduction       - Definition of Collections.       - Clean collections and documentary collections.       - Commercial documents and financial documents.       - Uniform Rules for Collection (URC).     • Process at Remitting or Originating Bank (Outward Collection).       - The collection order – instructions and importance.       - Negotiation of documents.     • Process at Collecting or Advising Bank (Inward Collection).       - Advising the drawer (importer).       - Payment and acceptance by drawer.       - Advising and remitting of payment to exporter. (ii) Documentary Credits.     • Introduction.       - Definition and types of documentary credits.       - Uniform Customs and Practices for Documentary Credits (UCP).     • Process/Procedures at Establishing Bank (Importer’s Bank) – Outward LC.       - Application by importer – terms and conditions.       - Issuing the LC.       - Examination of documents from Exporter.       - Payment by Importer.     • Process at Advising Bank (Exporter’s Bank) – Inward LC.       - Receiving the LC from establishing bank.       - Advising the LC to the exporter.       - Examination of documents from the exporter.       - Negotiation of documents. TARGET GROUP Officers in trade finance and credit department. FORMAT Lectures, group discussions and case studies.