Bank guarantees
Security of payment obligations
A guarantee is issued to the beneficiary to certify obligations of the bank's client under the contract with the beneficiary. The bank which issued the guarantee undertakes to pay upon receiving a claim from the beneficiary made in the event of the bank client’s breach of contract. The bank satisfies claims made within the period specified in the guarantee and which do not exceed the amount of the guarantee.
What we offer
By issuing a guarantee, a bank provides payment on behalf of its client, undertaking to settle a substantiated claim presented in writing
We issue guarantees to local and foreign beneficiaries (business partners of our clients) on the basis of a Guarantee application
We issue guarantees for the benefit of a foreign correspondent bank that issues its guarantee to your partner in a foreign country
We advise (transfer) guarantees to our clients which have been received from foreign banks as requested by business partners of our clients
Frequently asked questions
Payment guarantee – if you are an importer paying for goods after a certain period of time following delivery
Advance guarantee – if you are paying an advance to your seller but want to recover it if delivery is lacking or inadequate
Bid Bond – if you are participating in a competition (tender)
Performance Bond – if you have concluded a contract and are obliged to provide this type of guarantee under the contract.
The guarantee may be issued by your bank or by a foreign bank.
1. Financial coverage in the amount and currency of the guarantee for the effective period of the guarantee.
2. A deposit placed with the bank in the amount and currency of the guarantee, for a term at least 2 days longer than the effective term of the guarantee.
3. If you are unable to provide funds or place an appropriate deposit, you may apply for a credit limit secured by real estate, assets, sureties from third parties etc.