A bank guarantee is a written obligation (surety) that the bank (guarantee)gives the principal about the payment of funds to him, if the creditor (beneficiary) of the principal in accordance with the terms of the obligation that the guarantor assumes on behalf of another person (principal). This type of banking services guarantees the fulfillment of the client's obligations to counterparties and other banks.
When issuing guarantees, a contract is concluded with the client, which stipulates the procedure for issuing a bank guarantee, its terms, payment terms and mutual obligations of the parties. In some cases, this agreement requires collateral similar to a loan agreement. To obtain a bank guarantee, the client submits documents to the bank according to the established list for obtaining a loan.
For enterprises in the production and service sectors:
|The amount of the guarantee
|Based on contract amount
||Due to the terms of the contract
||Quarterly 1% of the guarantee amount
- Security deposit
- Pledge of liquid and property
- Insurance policy
- Other types of security according to the legislation