Introduction

Performance guarantee is issued to guarantee the applicant’s due and proper performance of contractual obligations in an underlying contract.

Product Features

1. Mitigate mutual distrust of parties involved in contract.

2. Guarantees due and proper performance of the contract.

3. Reduce initial cash outlay in a contract if cash deposit is otherwise required.

4. Improves liquidity and increase the contractor or supplier’s market competitiveness.

5. Commonly required in commercial contracts eg. sales and purchase contracts of goods and services, construction projects, etc.

Application requirements

1. Legally registered in Turkey.

2. Maintain current account with our bank.

3. Companies must possess the proficiency in performance under the contract.

4. A credit facility or at least 100% cash margin or deposits must be provided (must be pre-arranged with the bank).

5. The format of the bank guarantee that is to be issued must be acceptable to the bank.

Application Procedures

1. Applicant submits bank guarantee request together with the documentary evidence showing the need for the Performance guarantee eg the commercial contract.

2. Applicant remits the cash margin or deposits into the Bank and submits the required documents.

3. The bank evaluates customer and transaction information.

4. The bank reviews the bank guarantee application form, the format of the guarantee and checks the security documentation.

5. The bankers guarantee is issued.