Legal nature of documentary forms of international settlements and their use in Ukraine

Problem setting. Modern global economy is characterized by significant integration. In this regard, it becomes widespread cooperation between business entities located in different countries. Foreign economic activity of such entities is profitable, but at the same time complex activity with increased risk. Therefore, in the conclusion of the foreign trade agreement, in the process of harmonizing obligations, it is important to establish the most profitable interests of both exporter and importer. One of the main elements in carrying out foreign economic contracts is mutual settlements between the parties, that is, residents of different countries, which are called international calculations. Integrated research of advantages and disadvantages of using certain documentary forms of international settlements becomes increasingly relevant and needs considerable attention. This in turn will enable Ukraine’s business sector to effectively conduct foreign economic activity, to establish trust relations with foreign partners from different countries. Target research. The aim of the article is illumination the essence of documentary forms of international calculations used in modern foreign economic activity, establishing the advantages and disadvantages of their use, the formation of criteria for their effectiveness for subjects that carry out foreign economic activity, as well as consideration of issues of use of such forms of Ukrainian business entities. Analysis of the last researches and publications. The question of organization and forms of international calculations in the scientific works was examined by such foreign and home scientists V. V. Kozyk, N. M. Tiurina, N. S. Karvatska, O. V. Vasiurenko, V. V. Diachek, O. D. Kolosovska, V. S. Onishchenko , N. V. Kudlaieva and others. Article’s main body. World practice determines that international settlements are carried out in relevant forms that are conventionally divided into documentary and undocumented. Documentary forms of calculations are the letter of credit and collection. Up to 80% of payments in world trade is carried out using a letter of credit. In view of this, the authors in this article have identified the legal nature of documentary forms of calculations used in foreign economic relations, considered the advantages and disadvantages of such documentary forms of calculations as a letter of credit and collection, implemented a comparative analysis of forms calculations among themselves, and also analyzed the legislation and issues of use of these forms of Ukrainian entities of foreign economic management. Conclusions and prospect of development. The choice of parties to the foreign economic agreement of the optimal documentary settlement is an important condition for strengthening the financial and economic independence of the enterprise. In view of this, the importer so exporter should provide and take into account all the benefits and disadvantages of the use of a particular form of documentary calculations during foreign economic activity. Concerning the letter of credit, the most important problem of its application in Ukraine is the lack of confidence in Ukrainian banks by foreign partners because the latter establish such conditions for servicing letters of credit, which are often unacceptable for Ukrainian banks. Therefore, in order to effectively exist and develop Ukrainian banks in the world market, we believe that the state needs to improve the system of international settlements in line with current trends and improve the image of both Ukrainian companies and banks. This can be achieved through the use of tools to improve legislation in the settlement and credit sphere and the formation of an information base on solvency and reliability of Ukrainian and foreign companies, banks and their partners.