Based on the role of SAMA in overseeing and regulating the banking sector, and in order to maintain financial and economic stability in the Kingdom, and relying on established judicial principles and banking customs regarding bank guarantees, which represent an original, direct, and independent commitment on the part of the issuing bank, regardless of the circumstances surrounding the client who requested the issuance of the guarantee. This nature of credit instruments grants acceptance and trust among beneficiaries in both the public and private sectors. Acting otherwise would adversely affect the credit reputation in the Kingdom and the stability of transactions.

Accordingly, and after coordination with the relevant authorities, SAMA emphasizes that all banks operating in the Kingdom must not refrain from enforcing bank guarantees due to the initiation of any bankruptcy proceedings or the suspension of claims against the client who requested the issuance of the guarantee. Banks must continue to fulfill their obligations as stipulated in the terms and conditions of the bank guarantee letter.