Financial Guarantee
Obtained by resident from
non-resident
A resident is free to obtain financial guarantee from a non-resident.
Issued by resident to non-resident
A resident is free to issue financial guarantee to or on-behalf of
non-resident to secure borrowing obtained by a non-resident with some
exceptions as follows:
- the non-resident borrower is a special purpose vehicle (SPV) or if the underlying borrowing is being utilised by the resident guarantor, therefore the resident shall be subjected to the rules on external borrowing; or
- the underlying borrowing will be repaid by a resident, other than when financial guarantee is called upon. In such cases, the resident shall be subjected to the rules on investing in foreign currency assets.
Further Information
Application Submission
A resident must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms and user guides are listed below for reference. Please do not submit hardcopy application.
|
Application |
Form |
|---|---|
|
Issuance of Financial Guarantee |
Form FG-OB (previously known as Form A) |
|
Changes to Approved Financial Guarantee |
Form FG-CT (previously known as Form B, Form C and Report 6) |
