Bank Guarantees

Bank Guarantees and Standby Documentary Credits

The competitive power of your business may advance by our provided range of Bank Guarantees and Standby Documentary Credits

Bank guarantees and standby documentary credits

Tender Guarantees/Bid Bonds

Often called for in support of contract tenders. Provides the beneficiary with a financial remedy if the applicant fails to fulfill any of the tender conditions.

Performance Bonds

One of the most common forms of guarantee, used in a variety of situations. Normally required at the time of commencement of the contract and will extend over the duration of the contract, plus a grace period to allow the beneficiary to make demand in the event of non-performance of the obligations covered by the guarantee.

Advance Payment Guarantees

Used where the applicant calls for the provision of a sum of money at an early stage of the contract. The beneficiary can recover the amount paid in advance, or a part thereof, if the applicant fails to fulfill their underlying contractual obligations.

Financial Guarantees

A common type of guarantee issued to support various kinds of financial obligations of the applicant. Provides financial security to the beneficiary should the applicant fail to make payment for the goods or services supplied.

Facility Guarantees

Enables an applicant to secure banking facilities for a subsidiary/ associate company in other countries.

Counter Guarantees

Are issued in favour of a third bank to support re-issuance of a Bank Guarantee. They are very common for international transactions.

Retention Money Guarantees

Contracts may allow the beneficiary to retain a proportion of the contract payment until substantial completion of the contract has taken place. The beneficiary may be prepared to release this retention money to the applicant against the presentation of a guarantee.

Bank Guarantees and Standby Documentary Credit are handled in accordance with the rules published by the International Chamber of Commerce (ICC).

Note: In case of discrepancies between the Armenian and English versions of this page, the Armenian version shall prevail.

Last updated on: 22/09/2015 15:00