Bank Guarantees
The Bank Guarantees is an irrevocable undertaking of a bank to pay a certain amount to the beneficiary of the guarantee if the bank's customer has failed to fulfil his obligations towards the beneficiary.
Benefits for the buyer/importer:
- the opportunity to participate in the delivery of goods and rendering of services for state and municipal customers;
- the possibility of supplier credit;
- the ability to return the advance payment paid;
- generally, the guarantee fee is lower than the interest on a loan.
Benefits for the seller/customer:
- high reliability;
- ensuring implementation of contractual obligations;
- encouraging customer to accurate and timely implementation of its contractual obligations;
- support for the seller/customer in assessing the financial position of a buyer/contractor.
"Bank of Asia" CJSC provides the following types of bank guarantees:
- payment guarantee;
- advance payment guarantee;
- contract performance bond;
- tender guarantee.
Tariffs of Bank Gurantees and Letters of Credit
