A bank guarantee is a document under which a bank undertakes to pay a specified (limited) amount to a named beneficiary under the terms and conditions set forth therein.
A bank guarantee represents an irrevocable monetary obligation of the bank to perform payment in the event that a third party fails to fulfill its contractual obligations.
This banking service ensures the proper performance of the client’s obligations to counterparties and other banks.
Upon issuance of a guarantee, a contract is concluded with the client specifying:
- the procedure for issuing the bank guarantee,
- its terms and conditions,
- payment terms,
- and the mutual liabilities of the parties.
In certain cases, such agreements require collateral similar to that required under a loan agreement.
To obtain a bank guarantee, the client submits to the bank a package of documents in accordance with the standard list required for loan applications.
The issuance of guarantees and sureties is formalized by relevant agreements concluded with clients, which must specify the key terms and conditions, including the commission fee.
A bank guarantee (surety) is issued for a period of up to one year, except in cases where guarantees are related to investment projects under intergovernmental or international agreements.
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Client |
Based on the client’s request |
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Currency |
Based on the client’s request |
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Guarantee Percentage
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- For construction companies participating in tenders: guarantee issuance fee for each 3-month period: 1–3% - In other cases: guarantee issuance fee for each 3-month period: 1–5% |
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Guarantee Term |
Based on the client’s request, guarantees are issued for |
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Purpose of Guarantee |
Guarantees are provided for the fulfillment of contractual obligations, participation in tenders, postponement or delay of customs payments, customs clearance of incoming imported goods, and other cases |
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Collateral |
- Collateral of liquid assets or securities, or cash - Failure of the principal to fulfill the obligation under the guarantee - Risk insurance policy |
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Type of Guarantee (Divisible / Separate) |
"Ipoteka-Bank" is provided by ATIB branches through a bank guarantee form in a unified format |
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Document Issuance Procedure |
Issuance is carried out in accordance with the Bank’s Credit Policy and Lending Regulations. |
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Additional Terms and Conditions |
Interest (commission) is debited at the beginning of each 3-month period |
Eligibility Requirements
To obtain a guarantee, the principal must meet the following criteria:
- The business must be profitable and financially stable, with a liquid balance sheet;
- No overdue accounts payable;
- Positive auditor’s opinion for the last three financial years;
- Positive credit history.
List of Documents Required for Issuing a Bank Guarantee
- Application form;
- Resolution of the authorized governing body of the borrower approving the receipt of a bank guarantee; copy of the borrower’s constitutional documents (including latest amendments) to verify authority;
- Financial statements submitted to the State Tax Authorities for the latest reporting period;
- Auditor’s opinion for the last three financial years;
- If the client maintains settlement accounts or has obligations with other credit institutions (banks), a reference letter from such institution(s);
- Business plan;
- Documents confirming ownership or lease of commercial and/or production premises used for business activities;
- Additional documents depending on the purpose of the bank guarantee;
- Collateral documentation.