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Gzel Paketleme is located in Turkey . The company is considering to purchase some machinery worth of 1 Million USD . The machinery will be
Gzel Paketleme is located in Turkey The company is considering to purchase some machinery worth of Million USD The machinery will be used to produce some special packaging materials The seller of the machinery Rich Machinery is located in Germany. Gzel Paketleme estimated through cash flow analysis that he could pay the cost of machinery only after years. The supplier in Germany accepts to make this trade if he is fully secured through a bank guarantee provided by the buyers bank. Besides, he considers the option of converting these receivables into cash through his bank. They agreed that the transaction will be in the following way ; a time draft would be drawn by the seller to the buyer who is asked to accept the draft and then an aval would be provided by his bank who is a well known intermational bank Ing Bank, credit rating as being A by S&P one of the rating agencies in the world agencies The bank of Rich Machinery is Deutsche Bank a well known international bank credit rating as being A by S&P one of the rating agencies in the world agencies Pls see which financial instrument or instruments would solve the needs of parties here Pls identify first the needs of the parties. What do they want How would it work And draw please
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