Regulatory Alerts2016-08-31
Regulation on Letter of Credit and Bank Guarantee
The Board of the Central Bank of the Republic of Kosovo issued this regulation to establish comprehensive rules and procedures for issuing, confirming, transferring, and honoring letters of credit and bank guarantees. It mandates that all CBK-licensed banks operate in accordance with international standards, specifically UCP 600 and URDG 758, while defining key terms and outlining specific bank obligations. The regulation further requires banks to examine presented documents within five working days, ensures the independence of credit and guarantee instruments from underlying contracts, and officially enters into force on September 15, 2016.
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