International Banking

TRADE SERVICE PROCESS

Trade Service process is one of the core processes of the bank entrusted with the task of international banking services. The services are provided at all branches of the bank with a single contact point of customer service relationship officers assigned for this purpose.

Coopbank forex accounts shall be maintained in either of the below three currencies:

1. US dollar $

2. Pound sterling £

3. Euro €

MAJOR SERVICE PROVIDED BY TRADE SERVICE PROCESS

I. IMPORT

IMPORT BY LETTER OF CREDIT /Documentary Credit/

• An import Letter of Credit is unconditional undertaking, given by Coopbank at the request of our customer (the Applicant or Importer) to pay the Beneficiary (or Supplier) against stipulated documents, provided all the terms and conditions in the Letter of Credit are complied with.

Import-available by sight payment/negotiation payment/deferred payment*/ acceptance payment*

IMPORT BY CASH AGAINST DOCUMENT /Documentary Collection/

• Documentary collection is a method through which banks handle a seller's commercial documents with or without financial documents in accordance with instructions received from the seller in order to deliver the documents to buyer (importer) against payment and/or acceptance or against other terms and conditions.

IMPORT BY ADVANCE PAYMENT

• Advance payment: is a method through which a seller receives payment from a buyer prior to shipment or the agreed upon goods or rendering the agreed upon service.

Import-Payment though bank transfers

II. EXPORT

EXPORT BY LETTER OF CREDIT /Documentary Credit/

• An export documentary letter of credit is a document whereby Coopbank Exporter buyer instructs their bank to pay our customers, assuming that the agreed conditions specified in the original documentary credit, are met. It is an internationally accepted method of settling trade payments. Rules and guidelines are governed by the International Chamber of Commerce (ICC).

Export-payment available by sight/negotiation/acceptance of bills

• *If approved by the National Bank of Ethiopia

EXPORT BY CASH AGAINST DOCUMENT /Documentary Collection/

• A payment arrangement in which an exporter instructs Coopbank to hand over shipping and title documents to the importer when the importer fully pays the accompanying bill of exchange or draft.

EXPORT BY ADVANCE PAYMENT /Advance Payment/

• Advance payment: is a method through which Coopbank customer /seller/ receives payment from a buyer prior to shipment or the agreed upon goods or rendering the agreed upon service. Export-Payment through bank transfers, traveler cheques, cash (as long as it is declared).

EXPORT ON CONSIGNMENT

• Consignment basis payment is a method of payment in which the title to the goods remains with the Coopbank customer /seller/ until an agent (distributor) in foreign country sells them.
• Payment is made to the seller if and when the agent (distributor) sells the goods.

FCY RETENTION ACCOUNT

• Forex retention account shall mean FCY account maintained by eligible exporters of goods and services and recipients of inward remittances from abroad. It can be opened to exporters and frequent SWIFT remittance receivers.

TYPES OF RETENTION ACCOUNTS

Eligible customers may open two types of foreign exchange retention accounts (current accounts) which shall be designated as “Foreign Exchange Retention A” and “Foreign Exchange Retention B”.

Retention Rights:

Exporters of goods and services as well as recipients of inward remittances shall have the right to retain their FCY earnings in retention accounts as follows:

Account “A”

• Can retain thirty percent (30%) of his/her account balance for an indefinite period.

Account “B”

• Can retain seventy percent (70%) of his/her account balance for up to 28 days after which period any balance shall automatically be converted in the next working day into local currency by the bank using the prevailing buying rate.

NON-RESIDENT ACCOUNTS

TYPES OF NON-RESIDENT ACCOUNTS

• 1. Non-Resident Foreign Currency accounts
  2. Non-Resident Non-Transferable Birr accounts
  3. Non-Resident Transferable Birr account
• These accounts are opened for those organizations and individuals who are permitted to open NR - FCY account.
• (Opening criteria and procedure are the same as that of NR - FCY account)
• The balances of these account are expressed in Birr.
• Transfers from these accounts are exempted from exchange commission.
• As the name itself indicates balance of these accounts can be converted or transferred abroad or to NR - FCY account without prior approval of NBE.

ELLIGIBILITY

• Diplomatic mission offices
• Diplomatic mission staffs (except for Ethiopian nationals)
• Members of International Community
• International organizations and their organs

MONEY TRANSFERS

INCOMING TRANSFER THROUGH AGENTS

• Incoming Transfers: Coopbank work with different International Money transfer agents, in order to handle incoming money transfers from abroad.
• It can be credited to our customers account or paid in cash to the customers based on types of transfer agent selected for transfer.
• Inward Transfers could be sent through Swift, Personal or Bank Checks and Remittance Service Providers.

OUTGOING TRANSFER (TELELEGRAPHIC TRANSFERS/

• Outgoing Transfer: Payments processed to individuals or organizations abroad, upon the request of the Bank’s customers. Such transfers are used to effect payment for imports, tuition fees, membership fees, consultancy fees, medical bills, hotel booking, etc.

Transfers can be made either through Swift or through Foreign Bank Draft. Foreign exchange permit is required to make outgoing transfers.

GUARANTEE (FOREIGN)

• A letter of guarantee issued by an issuing bank/guarantor is a written undertaking by the bank to compensate (pay sum of money) to the beneficiary (local or foreign) in the event that the obligator/principal fails to fulfill his/her /its obligations in accordance with the terms and conditions of the guarantee.

Types of guarantee:

• • Bid bond,
  • Performance bond,
  • Advance payment guarantee,
  • Loan guarantee, retention guarantee’
  • Customs duty guarantee.

Eligibility criteria/conditions

• Customers that request the above products of Trade Service, except guarantee should fulfill the following criteria:
  • Should maintain current account with the bank
  • Should be in the possession of valid trade license for import /export as appropriate or business license or investment or industry license or must exist in the list of budgetary government organizations issued by the National Bank of Ethiopia.
  • In case of non-government organization, certificate issued by the Ministry of Justice, Regional Governments and offices authorized by proclamation.

SWIFT CODE/ BIC

• SWIFT code of Cooperative Bank of Oromia is CBORETAAXXX

Contacts for Trade Service Process

• Call Center: -
• Call 8518
• 011-515-6921
• 011-552-7808

by Web Admin

TRADE SERVICE PROCESS

TRADE SERVICE PROCESS

Trade Service process is one of the core processes of the bank entrusted with the task of international banking services. The services are provided at all branches of the bank with a single contact point of customer service relationship officers assigned for this purpose.

Coopbank forex accounts shall be maintained in either of the below three currencies:

1. US dollar $

2. Pound sterling £

3. Euro €

by Web Admin

stisna

Stisna: -

Sales transactions concluded before the commodity came into existence. Coopbank shall act as a manufacturer or constructor to undertake house construction, plant, power station, road projects, etc. as per specification.

Features

• Coopbank Islamic may conclude Istisna’a financing contractual agreement with a customer who is willing to pay the agreed amount on an installment basis during work in progress or in a lump sum at the completion of the work or on an installment basis following the completion of the work.
• At the conclusion of the contract, Coop bank shall collect a security deposit from the customer for his/her binding promise of Istisna financing.
• Based on the specification given by the customer for Istisna’a financing, Coopbank shall enter a contractual agreement with the builder/ manufacturer (contractor) in the form of parallel Istisna’a.

• Please contact Coopbank Islamic to get more detailed information and advice.

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Investment/Partnership Products and services

Investment/Partnership Products and services

Mudarabah Investment: -

Is a partnership between Coopbank and eligible customer (entrepreneur), where a profit and loss shared as per the agreed profit-sharing ratio. Coopbank shall undertake Mudarabah investment either from unrestricted or restricted investment account of customers or from Bank’s Capital and other deposits of interest free Banking.

Musharaka Investment: -

It is a joint ownership of property or equipment or commercial enterprise. Partner shall share profit as per the agreed ratio while losses are shared in proportion to capital contribution of partner.

by Web Admin