Bank guarantees

An irrevocable commitment of the bank to pay a sum of money to the Beneficiary, upon latter' request, if the Applicant (Bank' client) has not fulfilled the obligations for which the bank guarantee was issued.

Irrevocable commitment to ensure the fulfillment of contractual obligations

• Tender bank guarantee - facilitates participation in the procurement auction confirming the paying capacity and reliability of the Bidder
• Performance bank guarantee - ensures proper fulfillment of contractual obligations related to supply of goods/provision of services
• Bank guarantee of payment - ensures payment at maturity of all payments related to commercial contracts
• Advance bank guarantee - ensures reimbursement of amounts paid in advance in the event of failure to honor the obligation to deliver the goods/services
• Customs bank guarantee - ensures payment of customs duties and other taxes related to import/export
• Bank guarantee regarding customs broker services - ensures exercising of broker attributions, complying with customs/fiscal legislation, in operations on behalf of companies and covers broker' obligations towards customs bodies
• Banking counter-guarantee - payment commitment assumed to ensure the issue of a bank guarantee, by another bank, in favor of the Beneficiary or some other counter-guarantee; it is used in some countries where only guarantees issued by local banks or banks that meet certain criteria are accepted