Guarantees

The purpose of bank guarantees is the additional security of financial interests of the parties participating in foreign trade transactions.

The guarantee is an irrevocable pledge by the bank to ensure payment of a specified amount to the beneficiary of the guarantee (the beneficiary) in the event of non-compliance of its contractual obligations by a party, for which the guarantee is issued (the principal).

The content of the guarantee obligation is always the performance of an agreement / a contract which the guarantee refers to. The bank does not undertake any obligations on the performance of the contract terms; however, the bank guarantees payment of the amount stipulated by the bank guarantee to the beneficiary upon first request, on condition the request complies with the guarantee terms.

This way a client who is engaged in foreign business activities reduces possible losses from non-performance of a transaction to a minimum, which is especially significant for international contracts, when the buyer and the seller operate in different legal areas.

Central London Capital’s Confirming Bank issues payment guarantees, performance bonds, advance payment guarantees, tender / bid bonds, etc.

All guarantees are issued with a cash collateral in the amount of the liabilities, placed on a deposit account in the Confirming Bank or a security account. Another type of a collateral can be considered according to the credit policy of the bank.

We can also guarantee letters issued by other banks in favour of clients.

Guarantees

Fee for guarantee application processing with cash collateral

100 EUR

Fee for guarantee application processing without cash collateral

0.2 %, min 300 EUR

Issue of guarantee

With cash collateral up to 10 000 EUR

100 EUR

With cash collateral over 10 000 EUR

1 % annually, min 250 EUR

Without cash collateral

to be agreed, min 500 EUR

Guarantee Amendment

100 EUR

Increase of the guarantee amount

0.2 %, min 100 EUR

Export guarantee advising commission

0.1 %, min 200 EUR

Guarantee cancellation

100 EUR

Payment of the claim

0.2 %, min 200 EUR