A bank guarantee is an obligation of a bank to a beneficiary to effect a payment up to the stated amount in case a beneficiary's counterparty does not fulfil its obligations (or another event takes place, no matter if it happened or not). It is a means of ensuring fulfilment of financial and other obligations under the contract and as well as a letter of credit is a bank’s obligation which is given to a counterparty at the expense and on instruction of a client.

One of the advantages of the guarantee is that it can be used for foreign trade transactions with an amount which is several times higher if partial shipments are stipulated.

The bank guarantee is not a type of settlements but an instrument called for ensuring the fulfilment of definite obligations of parties.

Types of guarantees issued by JSC Bank Forum:

The use of bank guarantees allows to mitigate the counterparty risks and minimize the expenses for import financing.
The bank issues guarantees for tenors of up to 720 days with a possibility of confirmation by first class foreign banks.

Contacts:

Yaroslav Verbovsky
Tel.: +38 044 205 35 93
Project and Trade Finance
verbovsky@forum.com.ua

Andrey Romanov
LCs/Guarantees
Tel.: +38 044 205 35 94
romanov@forum.com.ua