republic bank: banking for business in cuba - trinidad & … · 2019. 4. 19. · republic bank...
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REPUBLIC BANK: BANKING FOR BUSINESS IN CUBA
Oficina 308, Edifico Jerusalén,
Monte Barreto
3ra. Avenida e/ 78 y 84, Miramar
Tel: (537) 204 6800
Presented by: Roopnarine Oumade Singh
Republic Bank RepresentativeOffice in Cuba
• Commenced operations in May 2002
• RBL provides trade finance and bank services to exporters to Cuba
• Since 2002 RBL has financed more than US$2.2B of exports to Cuba
• More than 30 outstanding credit lines for:
– Local banks
– Local companies
Republic Bank RepresentativeOffice in Cuba
Banking services:• Collections from Cuban banks • Advising L/C • Confirming L/C• Issuing L/C taking as security L/C opened by local banks
(back to back)
Trade Finance: • Discount of letters of credit• Discount of bills of exchange and promissory notes• Commitments to discount
Discounting a Bill of ExchangeExporter signs Commercial Contract with Importer
Exporter ships merchandise and sends shipping
documents and Bill of Exchange to Importer
Importer uses shipping documents to receive
merchandise and accepts the Bill of Exchange
At this point RBL discounts the Bill of Exchange
Exporter receives the discounted value of the Bill of
Exchange less a retention held by RBL
Once RBL receives payment on the maturity date, the
full amount of the retention is paid to the exporter
Discounting a Letter of Credit (L/C)
Exporter ships merchandise and sends shipping
documents to RBL. RBL sends shipping documents to
Issuing Bank who then reviews shipping documents
Exporter signs Commercial Contract with Importer
Importer sends orders to Issuing Bank (or Cuban
Bank) to open Letter of Credit in favour of Exporter
Issuing Bank issues L/C as per instructions from
Importer. RBL advises the L/C
Discounting a Letter of Credit (L/C)
If all shipping documents are in order, the Issuing
Bank issues a SWIFT message confirming the amount
to be paid at the maturity date
At this point RBL can discount the L/C
The Exporter receives the discounted value of the L/C
minus a retention that is held by RBL
Once RBL receives payment on the maturity date, the
full amount of the retention is paid to the exporter
Main RBL credit lines in Cuba
Company Industry
BFI Financial Services (Bank)
ETECSA Communications
TRD Distribution (Retailer)
CIMEX S.A. Distribution (Retailer)
Moa Nickel, S.A. Manufacturing (Nickel)
Bucanero S.A. Manufacturing (Beers)
CUBARON Manufacturing (Rums)
MCV Comercial Distribution (Vehicles)
BICSA Financial Services (Bank)
•Credit lines > $70M
•Credit terms of up to 360 days
CONTACT DETAILS
• Roopnarine Oumade Singh
Email: [email protected]
Phone: 625 3617 Ext. 3410
• Davi Samaroo Singh
Email: [email protected]
Phone: (537) 204 6800