Bank guarantees are a way of ensuring the fulfilment of obligations, according to which the Bank is obliged to make a payment or pay the corresponding amount in the event of the occurrence of an event or fulfilment of the conditions stipulated in the guarantee document. 

 

Secure financial obligations or to confirm fulfilment of the terms of contracts/agreements

 

Contribute to maintaining trust between business partners, reducing the risk of default, and enable businesses to open new markets and opportunities without withdrawing capital from circulation.  

The bank's obligation to the customer to ensure that the tenderer will comply with all the requirements of the tender documentation and conclude a contract for the performance of works or provision of services if the contract is awarded. 

 

Provides the customer with confidence that the tenderer is serious about its obligation and will fulfil the terms of the contract if it is awarded the work or services.

 

In the event that a tenderer withdraws or fails to enter into a contract after winning the tender, the tender guarantee may be used to cover the employer's costs of holding a new tender or other losses. 

An obligation of a bank to a customer to guarantee the fulfilment of certain conditions or obligations set out in a contract.

 

It provides the party receiving the service or goods with confidence that the terms of the contract will be fulfilled in accordance with the agreements.

 

In the event of a default, the bank that issued the performance guarantee may be obliged to pay the customer an appropriate amount to cover losses or costs of completion.