The International Chamber of Commerce (ICC Qatar) has lauded the Qatar Central Bank’s (QCB) recently-issued circular to all banks on the unified form of the Demand Guarantee Letter.
In a statement, ICC Qatar said the form aims to reduce disparity in the terms and conditions governing letters of guarantee of all types issued by banks. The standard format for guarantee letters would reduce risks and help minimise banking risks recognised for this type of banking transactions, the statement stated.
ICC Qatar also said the unified template for the guarantee letter is drafted by its Banking Commission with a view of creating a unified system that is consistent with international regulatory standards.
“The form is a result of enormous effort made by the commission, in co-operation and collaboration with the QCB and all banks and concerned companies. It should positively impact the investment climate in Qatar and help attract more foreign investments,” the statement stated.
The circular issued by QCB calls on banks to abide by the form when issuing any new letters of guarantee as of the date of issuing the circular. The circular also states that with respect to the existing letters of guarantee at the time of such circular on compliance with the agreed terms shall be observed.
ICC Qatar has recently hosted several seminars, during which the banks’ views on the form were explored. The seminars also witnessed the banks’ approval on the form, which sets out the general conditions and rules governing the relationship between the bank and other parties associated with the letter of guarantee and defining the duties and rights of each party.
ICC Qatar also said the unified template for the guarantee letter is drafted by its Banking Commission with a view of creating a unified system that is consistent with international regulatory standards.
“The form is a result of enormous effort made by the commission, in co-operation and collaboration with the QCB and all banks and concerned companies. It should positively impact the investment climate in Qatar and help attract more foreign investments,” the statement stated.
The circular issued by QCB calls on banks to abide by the form when issuing any new letters of guarantee as of the date of issuing the circular. The circular also states that with respect to the existing letters of guarantee at the time of such circular on compliance with the agreed terms shall be observed.
ICC Qatar has recently hosted several seminars, during which the banks’ views on the form were explored. The seminars also witnessed the banks’ approval on the form, which sets out the general conditions and rules governing the relationship between the bank and other parties associated with the letter of guarantee and defining the duties and rights of each party.