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Bank guarantee

Guarantee of fulfilment

of commitments

Better payment conditions

negociation

Local and international trade relations

facilitation

A Bank Guarantee is an irrevocable commitment of a bank to pay the amount as specified in the guarantee, to the Beneficiary, upon their first request, if the Applicant does not fulfil their commercial duties.

OTP Bank as a guarantor bank, is a reliable partner guaranteeing good performance of a commercial contract. Being the beneficiary or Applicant of a bank guarantee can benefit from our specialised and professional consultancy.

Whether you are the beneficiary or the applicant of a bank guarantee, you can benefit from specialized and professional consultation.

Types of the Guarantees

Payment Guarantee

It is given upon buyer’s request, to ensure payments to the seller for goods delivered or services rendered.

Performance Guarantee (Performance Bond)

It is requested by the beneficiary and ensures that the supplier will properly perform their contractual duties.

Advance payment Guarantee

It is given upon buyer’s request and ensures reimbursement of advance payment if the seller fails to perform their contractual duties.

Credit reimbursement Guarantee

It is used to ensure the credit granted by a third-party bank (guarantee beneficiary) in the favour of a legal entity or individual.

Customs tax payment Guarantee
Tender Guarantee (Bid Bond)/Stand-by letter of credit

A payment instrument that protects against possible risks in international trade. It also combines the advantages of a bank guarantee letter and a documentary letter of credit.

How it works?

If you often carry on procurement/import transactions with advance payment with the same supplier, you can offer a payment guarantee to the seller and negotiate payment terms. If you carry on an export transaction with a partner that does not want to transfer an advance payment as required for production process, you can offer an advance reimbursement guarantee.

Whether you are the beneficiary or the applicant of a bank guarantee, you can benefit from specialized and professional consultation.

Useful information, regulations, tariffs

 

For clients who have already signed a credit agreement for bank guarantees, which are secured by credit or covered by 100% with monetary funds, within the General Terms and Conditions for issuance of bank guarantees and letters of credit.