Financing Solutions

Financing Solutions

Financial Solutions FAQ

LC Guarantees

What are LC Guarantees?

This financing option under the FFF refers to borrowers’ ability to request LC guarantees from the IDB. An executed guarantee in LC becomes a loan in LC with the same terms and conditions applicable to LC loans. Guarantees are subject to market availability of the currency requested by the borrower.

What are the denomination, claim and fees associated with an executed LC guarantee?

e guarantee in LC becomes a loan in LC to the sovereign borrower or counter-guarantor to the IDB, with payments of principal, interest and other charges done in LC, under the terms and conditions of applicable to LC loanslending. Guarantee fees are charged in LC and reflect theIDB’s fee structure for guarantees applicable at the time of guarantee approval. For more information please consult with us.