Features of using documentary forms of international settlement in Ukraine

The peculiarities of the use of documentary forms of international settlements by economic entities of Ukraine are analyzed, in particular, advantages and disadvantages, requirements for the use of documentary forms of international settlements, as well as the main directions of innovative approaches to improving their application. The prospects for the development of documentary forms of international settlements in Ukraine are outlined. The stages of decision-making regarding the use of a documentary letter of credit in the implementation of an export operation have been developed.

This article analyzed the use of documentary forms of international settlements in Ukraine, which is an important and necessary factor in ensuring the effective and safe implementation of foreign economic activity, especially in conditions of increased volatility of the international environment.

The advantage of documentary forms of international settlements is that they provide a high level of protection of the interests of the parties to the agreement. They allow you to avoid risks associated with non-payment of goods delivery, unreliable information about the condition and quality of goods, possible changes in prices or exchange rates and other potential problems.

The use of documentary forms of international settlements also ensures trust between the parties by monitoring compliance with the terms of the agreement. However, using a documentary form of settlement can also be a complex and sometimes inconvenient process, as it requires some interaction with paper and compliance with certain procedures. In addition, this form of payment can be expensive due to commissions and other costs associated with banking transactions.

Ukraine, as a state with a high level of involvement in international economic relations, actively uses documentary forms for international settlements. This is confirmed by the large number of banks offering this service and the growth of foreign trade volumes. Thus, the use of documentary forms of international settlements in Ukraine is beneficial and necessary to ensure the safety and efficiency of foreign economic transactions. However, it requires some discipline and additional costs.

In general, the issue of the use of documentary forms of international settlements in Ukraine requires attention and resolution by improving the legal framework, passing certification courses, improving the qualifications of specialists, and increasing the number of banks that provide services for the use of documentary forms of international settlements. This will help ensure the safety and efficiency of foreign economic activity of Ukrainian companies.