| Trade Financing |
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Bank Guarantee-i (BG-i)
BG-i is an irrevocable written obligation issued by Bank Islam to pay an agreed sum, in case the customer defaults in fulfilling his obligation.
Issued under the Kafalah contract, BG-i is Bank Islam’s irrevocable undertaking to guarantee performance or financial standing of a customer. BG-i is not a financing instrument.
FEATURES
- Bank Islam acts as a guarantor. In the event the customer defaults in performing his obligations, Bank Islam will take the responsibility to honour the beneficiary’s claims
- All BG-i must have specific expiry date and claims period
- The period of BG-i issued must not exceed 1 year except
- BG to cover government contracts
- BG in respect of contracts for a specified period
BENEFITS
- BG-i is widely accepted, thus giving the beneficiary more confidence.
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