Thursday, March 11, 2010
Istisna' Financing

The client approaches the bank with a request for financing for a specific technical/industrial project, presenting all technical designs and plans, as well as all general and specific conditions that relate to the project after consulting a specialized engineering consultancy office.

After the Bank's agreement to the request, a contract is prepared detailing the project specifications, as well as the cost of the project and the payment plan to which the client commits, whether monthly installments or full payment. A separate contract is prepared between the bank and a “contractor”, by which the contractor commits to carry out the project in accordance with the design and specifications previously outlined.

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