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Clarification related to foreign companies instructing in the matter of local letters of guarantee
May 19, 2020
To all approved banks ( letters of guarantee )
Number: 9/153Date: 17/5/2020Subsequently, the controls numbered (9/3/58) on 2/26/2015 and 9/20/1510 on 12/30/2019 and its annexed circular number 9/3/9 on 1/3/2020. With regard to foreign companies commanding the subject of domestic letters of guarantee, we would like to clarify the following : -
[*]For companies that are not registered in Iraq, a corresponding foreign guarantee letter or insurance (100%) will be collected in cash from the amount of the issued letter, according to the above controls.
[*]Companies registered in Iraq according to official documents and have actual presence and employment cadres, your banks can treat these companies with the treatment of Iraqi companies, provided you fully comply with obtaining guarantees of not less than (100%), including cash guarantees not less than (15%) of the total amount of the issued letter and according to the controls Above.
[*]The aforementioned represents the minimum requirements regarding this type of facility, and in the event that the bank’s policy includes more precautionary procedures and requirements, this will reduce the severity of the risks surrounding your institutions to a large extent and in the public interest of all parties, and the extent of your commitment to the above controls will be followed up through Desk analysis of the data sent by you and the results of field visits.
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