The United Amara Bank (UAB) signed off on a trade finance agreement with the Asian Development Bank (ADB) on Wednesday at Rangoon’s Sedona Hotel that allows UAB a letter of credit (LC) insuring them for US$4 million for each international transaction the bank makes.
The LC is a bank guarantee service for those involved in import-export business ventures. When a cash payment must be made, a third party (the ADB) makes a guarantee on behalf of the service provider (the UAB). An LC process can adopt varying time frames, with some banks specifying that one transaction is allowed every two to three months, according to Kyawt Kay Khaing, UAB’s Chief Business Officer.(Courtesy of irrawaddy.com)
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