The Central Bank reduces the letters of guarantee of the brokerage companies by the banks

48 2019-01-09

The central bank announced on Wednesday that it had reduced the letters of guarantee for brokerage firms by banks.

"It is decided that the period of validity of letters of guarantee issued by banks for the benefit of companies that mediate the sale and purchase of foreign currency for six months instead of one year from the date of issuing the letter of guarantee to companies wishing to extend the letters of guarantee in force," the bank said in a statement.

"Letters of guarantee must be 50 percent of the company's capital."

A letter of guarantee is a pledge issued by the bank at the request of the customer in which the bank undertakes to pay the value of the letter to the account of a third party which is the beneficiary in the case of a claim for payment of it in a certain period.


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