Loans, as a rule, are used for long-term investments (equipment, fixed assets acquisition, construction etc), but they can be used for short-term investments as well. They are granted in a single payment or installments. Loans are repaid by monthly installments, deferred or one-off payments based on the timetable agreed upon.
Interest rate is calculated daily on the actual credit balance and repaid on a monthly basis.

Credit line is granted to finance current activities and business turnover. Credit line is granted within a limit and during the whole period of its enforcement the Customer is granted Loans as specified in clause 2.1. In the full effective period of Credit line a Customer is entitled to receive an unlimited amount in Loans provided the totals of the actual balances at any one time is no more than the total limit of the Credit line. All the conditions and repayment timetable under a Credit line are set on the date of the opening of the credit line. No loans are granted upon the expiration of the Credit line term and the loans granted under the Credit line are to be repaid according to the timetable set for the Loans granted in compliance with the Credit line agreement as their expiration dates may exceed the Credit line deadline.

Limitations set for Credit line are as follows:

Bank guarantee

Bank Guarantee (BG) is provided to the Customer as financial guarantee before third persons to ensure fulfillment of obligations by the Customer.
The BG is given in accordance with the Bank tariffs up to 3 years validity term and in model form as approved by the Bank. Provision of specific or non-typical letters of guarantee (stipulating non-standard legal terms) is executed with approval of the Legal Department, whereas guarantees for longer term are provided by decision of the Credit Committee, notwithstanding the size of guarantee amount.

Overdraft

Overdraft is provided to fill a short-term (a few days) financial gap for a customer. Overdraft is issued to a customer's account by setting a credit limit. Overdraft enables a customer, if any deficiency in funds on his or her bank account, to withdraw amounts from the account within the total limit of overdraft.

The following limits are set for overdraft:

Letter of Credit is used to finance commercial transactions of a customer as a payment guarantee mechanism for purchases in the domestic market or from abroad.
In essence, it means payment by the Bank if certain events occur (such as: transfer and acceptance of goods, delivery of goods from plant, goods in transit or in some point of transit etc.) according to an agreement between a buyer and seller with a prior notice to the banks of both parties.
Letter of Credit is issued at the tariffs of the Bank. Upon payment the amount is collected from the customer's account or a loan is issued for the amount on the conditions determined on the Letter of Credit issue date.