Bank Guarantees

JSC Bank "Kontrakt", according to the existing legislation, offers bank guarantees to natural and legal persons who carry out entrepreneurial activities.

Bank guarantees is not a form of accounts, but a tool aimed at ensuring completion of these or those commitments of the parties.

The bank offers the following kinds of guarantees

Payment guarantee — ensures carrying out of buyer’s (Principal’s) commitments before the seller (Beneficiary) regarding payment of the cost of the agreement for shipment of the production, completion of a job or rendering service within the specified term.

Guarantee of returning the advance payment   is the obligation of the Bank regarding return of the amount of advance (or its unused part), if the seller does not carry out or does not carry out completely his commitments under the contract.

Performance bond – this guarantee ensures any payment requirements of the buyer regarding the seller, which may arise in case of non-delivery of the goods or non-carrying out of the conditions of the contract signed by them. This guarantee allows to strengthen the contractual relations between the buyer and the seller, by means of this guarantee the buyer insures himself against the risks of breaking deadlines or non-carrying out the jobs.

Guarantee of repaying the credit – this is the commitment of the Bank to repay payment requirements of the creditor regarding the debtor that arise in case if the latter does not carry out his financial commitments under the credit agreement.

Tender guarantee is the commitment of the Bank to refund the Beneficiary (the organizer of the tender) the amount of lost profit, if the Principal does not carry out his commitments to effect payment for the benefit of the Beneficiary within the frames of the amount specified in the guarantee. Tender guarantee is valid until the contract of the tender participant is concluded. This kind of guarantee provides the clients with the opportunity to participate in auction and supports their business rating.

The Bank offers guarantees on conditions envisaged by the Agreement about providing the bank guarantee, particularly the amount of commission payment for using the guarantee and the order of its payment, security, urgency, recurrency, target use, mutual responsibility of the parties (the Bank and the Principal).

In order to receive the guarantee the client is to present required documents (the list of required documents is presented by the Bank) and the application of the Bank’s standard.

After the financial-economic activity of the Principal is analyzed and his credit capacity and solvency are defined, the credit committee settles the matter of providing the bank guarantee to the Principal.

The time of providing the guarantee is from 1 to 7 days and depends on the kind of guarantee and availability of all required documents (according to the list).

Agreement about providing the bank guarantee needs to be ensured analogously to the credit agreement.

Contacts:

Sergei Germanovskiy, tel: +38 044 537 61 27.

E-mail: client@kontrakt.ua