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Bank guarantees

Bank guarantees

The bank guarantee is an irrevocable commitment of a bank to pay a certain amount, under terms agreed in advance, in the event of non-performance of obligations, undertaken by a third party or upon materialization of a certain risk. By issuing a bank guarantee International Asset Bank AD undertakes to pay the person indicated therein a certain amount, in accordance with the conditions envisaged in the said guarantee. Thereby the Bank guarantees the solvency of its clients before third parties (local or foreign institutions or legal entities) in the performance of certain types of transactions or in order to comply with statutory requirements.

International Asset Bank AD issues different bank guarantees: in BGN and foreign currency; such in favour of third Bulgarian and foreign persons, counterguarantees, guarantees, issued based on counterguarantees from other banks. The Bank also offers its clients framework agreements for issuance of bank guarantees. In this case the preliminary check of the client, the documentation analysis and the establishment of collateral are performed only once, when negotiating the limit.

Depending on the grounds of issuance and on the beneficiaries under the guarantees – legal entities or institutions – the following types of bank guarantees may be issued:

  • For participation in tender procedures;
  • Advance payment guarantees under contracts executed;
  • Performance guarantees under contracts executed;
  • Payment guarantees under contracts executed;
  • For securing customs debts
    - customs warehouses of А; В; С; D; E; F types;
    - general bank guarantee of Transit Regime type;
    - bank guarantee of Single Transit type;
    - bank guarantee of Common Transit type.
  • Prompt and facilitated issuance procedure;
  • Option for express issuance;
  • Acceptance of a wide range of collaterals;
  • Competitive fees and commissions;
  • No requirement for presentation of projected cash flows;
  • Additional benefits in case of execution of framework agreement with limit for the bank guarantees – optimization of costs and time.
  • Validity term: depending on the requirements of the contracts submitted, on the terms of tender procedures, etc.
  • Collateral:
    - Financial resources or other assets of a company or third liable persons accompanied by market evaluation formalized by an authorized assessor, approved by the Bank;
    - Financial risk insurance policies;
    - Pledge of future receivables.
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