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Bank guarantees and stand-by letters of credit

• Types of bank guarantees
• Tariff for Bank’s Guarantee
• Tariff for stand-by letters of credit
• Main terms on bank guarantees

"PRAVEX-BANK" PJSCCB offers services on provision of bank guarantees and stand-by letters of credit, securing confidence in fulfillment of contractual commitments.

Bank guarantee - the way of ensuring of liabilities fulfillment in compliance with which guarantee bank undertakes money liabilities towards Beneficiary to pay funds for Principal (Client) in case of non-fulfillment by the later of its liabilities in full amount or its part, on presentation by Beneficiary of requirement and compliance with all terms foreseen by guarantee.

Stand-By Letter of Credit -  irrevocable liability of Issuing Bank, provided to Beneficiary on request of Applicant of letter of credit, to perform payment for applicant in case of obtaining of the demand for payment together with documents, foreseen by terms of letter of credit, confirming non-fulfillment of liabilities by Applicant.

Both banking guarantee and stand-by letter of credit are issued for ensuring of liabilities fulfillment. One of the main differences is that different international rules are applied to guarantees and letters of credit.

Your advantages when using bank guarantees and stand-by letters of credit in "PRAVEX-BANK" PJSCCB

• low price of bank guarantee/stand-by letter of credit in comparison with made gains from its performance;
• minimization of risks, security in settlements performance and fulfillment of contractual commitments;
• evidence of your company reliability through cooperation with first class banking establishments of different countries;
• recommendations of "PRAVEX-BANK" PJSCCB with the purpose of optimization of deal terms.
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