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International Counter Guarantee
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Go global with confidence.
Guarantee/Standby L/C issued by alliance banks worldwide.
More confident,
more convenient.
Guarantee/Standby L/C issued directly from trade partners local issuing bank (under KBank’s guarantee).
Everything you need to go global.
Rest assured.
The beneficiary can claim directly from their local issuing bank to compensate loss incurred by any default on business agreement/contract.
Service Details
| Procedure for an international counter guarantee |
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Applicants must submit an application and evidence of collateral to the bank to establish a credit line for issuance of a Letter of International Counter Guarantee. The bank reviews the information and the documents while appraising the collateral before approving a credit line. After successful approval, the bank will establish the credit line. - An applicant must submit an application for issuance of a Letter of International Counter Guarantee
- The bank will examine your documents and your credit line burden for guarantee issuance approval
- After approval, the applicant must pay relevant fees to Kasikorn Bank, and the bank then issues an International Counter Guarantee addressed to its correspondent bank overseas, delivering copies of the guarantee to the applicant
- The foreign bank issues a guarantee to the overseas beneficiaries and notifies the result to the bank
- The bank collects any fee from beneficiaries in Thailand due to the issuance service charged by the overseas bank
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| Conditions |
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| The wording of any Letter of International Counter Guarantee must be approved by the bank and your beneficiary's bank. |
| Fees |
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| The standard commission depends on the types of guarantee/Standby L/C and other risk assignment, varying from around 1.5-2.5% per year. Including the fees charged from issuing bank abroad for the issuance of their local guarantee. Rates vary from bank to bank. |
How to Apply
| Qualifications |
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- Applicant must have international bank-guarantee credit line to issue a guarantee/standby L/C
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Frequently Asked Questions
What is a Letter of International Counter Guarantee?
A Letter of International Counter Guarantee is a guarantee issued by the bank directly to a customer's trading partners overseas. This letter will be issued by a foreign affiliate bank under the bank's guarantee.
Why do I need a Letter of International Counter Guarantee?
This instrument increases your overseas trading partners' confidence and convenience and allows them to submit any claim to their familiar local bank for compensation for damages incurred by any breach of business agreements from the contractual partners.
If a Letter of International Counter Guarantee is issued to a trading partner in a country where there's a war, will the guarantee be effective?
Depends on the terms and conditions stipulated in the Letter of International Counter Guarantee.
How much is the trade value to be eligible for issuance of a Letter of International Counter Guarantee?
That depends on the international policy of the issuing bank.
