Bank Guarantees

High reliability and fast implementation

Bank Guarantees
Bank Guarantees
Bank Guarantees

Bank Guarantees: Providing Financial Assurance

A bank guarantee is a bank's written promise to pay another bank, company, or anyone under a contract, loan, or debt security for a third party if that party fails to fulfill its obligations.

Benefits of a Guarantee for the Executor (Principal)

  • To take part in the provision of services for municipal and state customers and supply goods.
  • To receive a commodity credit from the counterparty, which is provided by a bank guarantee.
  • To receive a deferred payment of the amount according to the contract for the services provided and goods for which a guarantee was issued.
  • Typically, the guarantee fee is less than the loan interest.

Advantages of the Guarantee for the Customer (Beneficiary)

  • Guarantees are highly reliable and can be implemented quickly.
  • Fulfillment of obligations by the contractor.
  • Distribution between the customer and the contractor of all possible risks.
  • Fulfillment of all obligations stipulated by the contract on both sides.
  • Protection of the customer from the risks associated with periodic and advance payments.

Bank's Tariffs

Fee Rate Min Max
Issuance fee (for non-cash collateral) 6% per annum or 1.5% per quarter USD 150
Issuance fee (for a cash deposit) 1% (one time) USD 150
Fee for amending the text of the BG USD 100
SWIFT Message Fee According to the Bank's tariffs
Confirmation fees By agreement
Advising USD 100
Advising Changes USD 50
Certificates, requests, authentication guarantees KGS 2,500
Cancellation fee n/a