Movement of loan capital on conditions of credit recovery, period of agreement and paid servicing

Through the mechanism of international credit the loan capital is relocated to those countries and

Industries where the largest profits are guaranteed and the reduction in expenses of circulation of

Credit means (bills, drafts, cheques, transfers, etc.) provides the acceleration of payments on a clearing

Basis. Due to the use of foreign credits there comes an opportunity to exercise effectively the capital

Formed in other countries. It is a kind of specific donor blood (but returnable) which makes it

Possible to regulate economic developments in a borrowing country.

There are the following types of international credits according to their purposes:

• commercial credit (international trade in goods and services)

• financial credit (purchasing securities, investment projects, settlement of foreign debts, currency

Intervention of the central bank).

International credits may be given in the following forms:

• available credits which are passed to the borrower’s financial account

• acceptance credits in the form of unconditional acceptance of the draft (bill of exchange) by an

Importer or a bank

• certificates of deposit, i.e. the commitment (obligation) of the bank to pay (to pay off) the