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Bank Guarantee Monetization (BG) Non-Recourse for Owned BG’s

Instrument & Service Description

We offer 3 Bank Guarantee Monetization settlement methods:

1/ Bank SWIFT –

We use the Bank SWIFT Network to have the Bank Guarantee (BG) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.

2/ Euroclear –

We use the Euroclear Network because the Euroclear settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incur any SWIFTING FEES or Delays. Euroclear is a well-established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully employing over 3,500 people today.

3/ DTCC – On some deals we now also accept delivery of the Owned Bank Guarantees (BG) by DTC also known as DTCC (The Depository Trust & Clearing Corporation). The advantage of DTC is that clients using this process to deliver an Owned Bank Guarantees (BG) DO NOT incur bank SWIFTING FEES. DTC is a well-established International business that was founded in 1999 and in 2015 was recorded as settling 1.5 Quadrillion Worldwide making its the highest value securities settlement processor in the world.

EC’s Bank Guarantee Monetization services are ideal for clients looking to Discount, Monetize, or create an immediate Non-Recourse loan against an Owned Bank Guarantee (BG) that they control. The Bank Guarantee Monetization process for an Owned Bank Guarantees (BG) issues Non-Recourse funds to the Client shortly after the Bank Guarantee (BG) is delivered to the Monetizer.

Important

We can purchase the Owned Bank Guarantee (BG) outright or allow the client to retain full ownership of it and create a Monetized Non-Recourse payment against the Owned Bank Guarantee (BG). Most clients prefer to retain ownership and take the Non-Recourse payment.

Our contracts also include the monetizer returning the Owned Bank Guarantee (BG) to the Issuing bank 15 days prior to the Bank Guarantees (BG) expiration.

Bank Guarantee Monetization LTV

  • Bank Guarantee (BG) Sale – 80% Non-Recourse
  • Bank Guarantee (BG) Monetization –  80% Non-Recourse

Estimated Completion Time

14 to 21 Days after all documents are signed and verified or 3 to 4 Days After Instrument Delivery on the SWIFT or Euroclear Networks.

Closing Process – SWIFT

  1. After execution of the Bank Guarantee Monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
  2. The Monetizers bank on receipt of the SWIFT MT799 from the client’s bank will reply with a SWIFT MT799.
  3. On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Bank Guarantee (BG) by SWIFT MT760 to the Monetizers bank.
  4. Upon receipt, confirmation and delivery of the SWIFT MT760 the Monetizer will within maximum four (4) banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  5. The Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Closing Process – Euroclear

  1. After execution of the Bank Guarantee Monetization contract by both parties the Client will instruct his bank to assign the Bank Guarantee (BG) using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.
  2. The Clients Banker shall immediately email a certified Euroclear execution receipt of the Bank Guarantee (BG) delivery to the Monetizer.
  3. Upon receipt and confirmation of the Euroclear assignment and delivery, the Monetizer will within maximum three (3) banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  4. The Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Critical Compliance Criteria

Accepted Criteria

The Owned Bank Guarantee (BG) MUST be from a Rated Bank and Delivered by SWIFT or Euroclear.

Rejected Criteria

Any Owned Bank Guarantee (BG) on the Banned Assets or Banned Providers List is Rejected.

Client Standards

EC requires clients meet key standards and pass compliance for us to consider working with them. We do not accept all clients because doing business with EC is a unique Privilege given solely to real, genuine, authentic clients, not a Right that is attainable by all.

Summary

We solely deal with real deals, real people and real Owned Bank Guarantees (BG) that need real Bank Guarantee Monetization.

The Euroclear and the Bank SWIFT Network is the Gold Standard that validates that your Owned Bank Guarantee (BG) is real and it provides a respected industry platform where guaranteed settlement can be facilitated. Close your successful transaction with EC.

Application Procedure

In order for you to get started please download the EC CIS for Bank Instruments, complete and send to info@economic-consultants.com.

We will follow up sending you our EC NSNC NDA. With that in place we have done our KYC and we will send you our Service Agreement for Monetizing Bank Instruments.

By then we have a Pre-approval for your request in place, and we will send you the final application for you to sign and return to us.

Then we will get you the LOI/MOU. The whole process should take between 15 to 25 days after the first payment is made.

NB! Changes may occur without warning!