Effective 1 May 2006, a new charge mechanism will be levied on all negotiation or confirmation of Letters of Credit based on the issuing banks and the issuing banks country standing and rating. This is to adopt risk-based approach to charging for negotiation of documents drawn under Letters of Credit or confirmation of Letters of Credit.
These charges of risk premium will be an additional charge on top of the existing charges for negotiation of Letters of Credit and will replace the existing charges for confirmation of Letters of Credit.
Risk Premium is based on the following:
- Issuing Bank Risk
- Country Risk (Political and Economical Risk)
Quantum is divided to 4 categories
|Risk Level 1||Min. of 0.05% per month based on the LC amount|
|Risk Level 2||Min. of 0.10% per month based on the LC amount|
|Risk Level 3||Min. of 0.15% per month based on the LC amount|
|Risk Level 4||Min. of 0.20% per month based on the LC amount|
The above risk premium is only applicable when Maybank takes the risk of the issuing bank or confirming bank. Documents purchased against customer facility limits will not be subjected to these charges.
For further clarification please contact the following personnel.
- En Sazurrudin - 03-20748132
- En Mahmud Lot - 03-20747469
- En Krishna Kumar - 03-20748693
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1300 88 6688, any time,