Bank Guarantees

One of the most accessible and efficient ways of acquiring additional security of payment or other obligations to counteragents is by obtaining a Bank guarantee.

A Bank Guarantee is an irrevocable obligation according to which the Bank undertakes to pay a certain sum of money to the indicated party on the terms set forth in the guarantee.

An important advantage of a Bank guarantee is its low price in comparison with the price of a loan. Credit-Moscow Bank offers clients the following types of guarantees

  • Tender bank guarantees are guarantees of a tender participant’s fulfillment of its obligations to the tender’s organizer. This type of guarantee ensures the payment of a certain sum of money in case of recall of a tender offer by the tender participant prior to the expiration of the period of consideration of tender applications or in case of refusal by the winning tender participant to sign the contract.
  • Contract fulfillment guarantee is a bank guarantee according to which the Bank assumes the obligation to pay to the buyer / the customer a certain sum in case the seller / the supplier fails to fulfill its supply obligations or other contractual obligations.

Terms of extension of bank guarantees

For clients maintaining current account with Credit-Moscow Bank for 6 months or more:

  • Without security – in the amount of up to 30,000 roubles;
  • Without security – within the limit set by the Bank for the client. The limit is set within 50% of the average daily balance of funds in the Client’s current account with Credit-Moscow Bank.

The decision on bank’s guarantees is made (valid for the Clients of Credit-Moscow Bank only):

  • Standard procedure: 3 business days;
  • Expedited procedure: on the day of application to the Bank

Procedure of extension of guarantees

The procedure of procedure to extend a bank guarantee is similar to the procedure for the extension of a loan (the expedited  procedure is used to extend guarantees on security of Credit-Moscow Bank's notes).

The following documents are to be submitted to the Bank to consider the issue of the extension of a guarantee:

  • An application for the bank guarantee (under the standard form);
  • A questionnaire;
  • The financial statements for 4 quarters (the balance sheet and form No. 2);
  • The tender documentation (for tender guarantees);
  • The signed contract (for guarantees issued as collateral for the contract).

 

Branches: 
Moscow: tel.: (495) 72-707-72, msk@cmbank.ru
Saint Petersburg: tel.: (812) 325-86-46, spb@cmbank.ru

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