Banking Guarantees

A guarantee is a written undertaking issued by the bank (the guarantor) to pay a specific amount to the beneficiary based on the request of the guaranteed person (the issuance applicant or customer) and within a specific time period if the issuance applicant fails to carry out the purpose for which the guarantee was issued.

 Types of Guarantees

• Bid Bond: issued for a customer who is a tender participant to ensure he participates in a bid.
• Performance Bond: issued following the awarding of a bid to the guaranteed for the purpose of proper implementation of a bid
• Maintenance Bond: issued to ensure the maintenance work that the guaranteed agrees to perform following the conclusion of the performance work.
• Payment Guarantee: issued to ensure the financial liability of the guaranteed
• Advance Payment Guarantee: issued to ensure an advance payment from the beneficiary on the account of the bid, allowing the guaranteed to receive the value of this payment upon bid completion.
• Transit Guarantee: issued to ensure the transit of goods within the state's boundaries and their re-exit within a specific time period.
• Temporary Release of Goods—TR: issued to ensure the receipt of goods prior to the arrival of the original bill of lading, and the bank undertakes to present the original bill of lading suitably endorsed within a certain period.