Delaware, USA (AGENCIES) February 9, 2010 — Banks and Investment companies can discount their customers’ Bank Guarantees at Switzerland and America Trust, LLC (SAT) with a deduction rate that is the lowest in the world market. There are a very limited number of international banks which can discount bank guarantees for large sums of money and SAT is one of them, according to SAT press release.
Banks and investment companies can enjoy bank guarantees discounting service provided by SAT for the benefit of their clients. SAT provides the lowest discount rates worldwide for any bank guarantee regardless of the actual size of the amount provided that it is issued by a bank that is rated A+ or above. Nevertheless, the bank or the investment company has to sign an agreement with SAT prior to providing this service to its clients.
This service that is provided by SAT since January 2007 is considered one of the strongest banking services to be launched. It reflects the size and capability of SAT in the banking industry.
Note: This service is subjected to the conditions of the Credit Committee at SAT which has the right to reject any request (without giving any reason) that does not meet the specifications of the funding procedures. SAT does not accept bank guarantees covered by money from suspicious sources or that will be used for acts against the law.
From 8th of February 2010 the board council of SAT has decided to modify the Bank Guarantee discount system as follows:
· Bank Guarantees issued from A+ (or better) banks are now acceptable.
· Standby Letters of Credit (SBLC) and Certificates of Deposit (CD) are accepted and are both treated as BG discounts.
· The new payment procedure is as per the following table:
1. This payment schedule represents the typical draw-down schedule required by SAT Clients. Our Credit Committee may agree alternative payment schedules depending on the Client’s project requirements.
2. Since the discount provided by SAT is considered a loan, the client is obliged only to payback the amount he has received in addition to 1% payable at the due date (Example: If the client has presented a Bank Guarantee of 100 Million Euros and received a loan of 85 Million, by SAT, the client will payback an amount of only 86 Million Euros).
3. The percentages mentioned in the above table are subject to change depending on the amount of funds, the Bank Guarantee issuing bank and its rating, and the Credit Committee at SAT.
4. This service is offered only to the active clients of SAT.