BSTDB provides various types of guarantees. Operations involving guarantees are appraised, processed, and supervised in the same manner as those involving direct loan extensions and are subject to the similar limits and requirements.
BSTDB’s basic guarantee commission and fee structure may consist of front-end fees, exposure and/or periodic guarantee fees and commitment fee components which are meant to provide the Bank with an adequate compensation for the risks assumed as well as administrative expenses incurred. Guarantee fee pricing depends on the guarantee’s specific coverage and risks.
The obligor shall be liable for any additional fees and expenses including those associated with the appointment of any independent consultant required by the Bank at any stage of the project appraisal and development.
In all cases the maximum BSTDB exposure must be known and measurable and the credit risk must be acceptable. Precise legal definitions of the events guaranteed and pricing are handled on a case-by-case basis.