The bank guarantee is a type of security that helps to reduce the financial risk for the transactions of imports and / or exports of goods.
In the event of the first demand guarantee, the bank effects payment if the beneficiary of the guarantee has submitted the first written request corresponding to the guarantee conditions.
In case, the bank is a guarantor the bank effects payment if in addition to the request of beneficiary of the guarantee the bank has also received the consent of the guarantee claimant or the court decision that such a payment is to be made.
The bank guarantee is issued in accordance with the client’s application within 3 business days after processing the security in the bank.
Nordea offers the following types of bank guarantees:
- Tender security (bid bond) bank guarantee provides the fulfilment of liabilities of the tender applicant in accordance with the regulation of the tender.
- Advance payment bank guarantee provides advance payment in case the advance receiver fails to perform obligations under the contract.
- Performance bond (contractual obligations) guarantee ensures the fulfilment of contractual obligations of the guarantee principal / executor.
- Guarantee period guarantee ensures the fulfilment of guarantee period obligations of the guarantee principal / executor under the agreement.
- Payment guarantee ensures the fulfilment of the payment obligations of the buyer under the agreement.
- Loan guarantee secures the claim of the lender against the debtor.
- Customs guarantee ensures the payment of the Excise Tax, VAT and the tax liabilities administered by customs authorities of the principal to the State Revenue Service.