Guarantee transactions
Types of bank guarantees
At present the Bank provides all types of bank guarantees accepted by Russian and international practice, namely:
- tender guarantee – issued on request of a tender participant to the party which has declared the tender, it ensures the fulfilment of all obligations by the tender participant resulting from the bid presented;
- performance guarantee – issued on request of a goods or services supplier (contractor or other person) to the buyer (customer) as a guarantee of due execution by the supplier of the contract (agreement) concluded between the supplier and the buyer;
- customs guarantee – issued in favour of customs authorities of the Russian Federation for customers responsible for customs charges to guarantee the customer payment of customs charges within established amounts and time limits, and instalment payment /delays of payment of customs charges as per the Customs Code and the Tax Code of the Russian Federation;
- guarantees and vouchers in favour of the Ministry of Taxation – issued in favour of the tax authorities of the Russian Federation for customers responsible for excise duties payment;
- guarantees in favour of international air-transport organisation IATA..
The Bank guarantee will let you:
- secure the most favourable price for goods;
- delay a payment (commodity credit);
- implement projects with countries that are characterised by a high degree of risk;
- find new market outlets with minimum risk and expenses.
An advantage of bank guarantee is that no funds of the customer or the Bank are used. Therefore the interest rates on guarantees are significantly less than interest rates on loans. The Bank accepts assets of the borrower, business owners or third parties as security under guarantees, in particular:
- bill and notes, deposits with Novikombank;
- real estate (industrial, warehouse, office, trading, land plots);
- equipment, motor transport;
- goods, raw materials and other materials;
- residential real estate.
The pledged property should be insured against basic risks by the insurance company agreed with the Bank. Guarantees of legal entities and individuals may also serve as a security. If the customer’s business requires a frequent use of guarantees, the Bank can open a limit of issuing guarantees under which the customer can obtain guarantees within 1–2 days.
