Letters of guarantee from the bank for a natural or legal entity customer is a guarantee document ensuring that the Bank will unconditionally make payment to domestic or foreign official institutions or agencies or other natural or legal entities for the sum guaranteed in case of conditions are not met in certain circumstances such as completion of work, provision of goods or payment of debt. A bank that provides guarantee via a letter of guarantee does not make a commitment for the activities of the beneficiary, however in the event such activities are not fulfilled, it guarantees to make a payment to the warrantee (acceptor) in the amount that was stated in the letter of guarantee.
Our Bank provides letters addressed to institutions or individuals, ensuring unconditional guarantee of payment on behalf of firms that have a credit limit at our bank, and stating that they have credibility, and that if they cannot fulfill certain commitments with regard to topics such as the provision of goods, the undertaking of work or the payment of a debt, that our Bank will perform it, for the benefit of firms with a credit limit.
Who can take advantage of this product?
All of our Corporate and Entrepreneur segment customers can take advantage of this product. Additionally, for natural persons, temporary Letters of Guarantee can be issued solely against Liquid Assets.
Letters of guarantee can be of limited period (predefined validity period) or indefinite.
- There are three types of Letters of Guarantee: temporary, performance and advance.
- Customers pay commission on letters of guarantee, either in its terms or in advance.
- In case of failure to meet agreed conditions, the amount of the letter of guarantee will be paid by our Bank upon written request of the acceptor, and on the condition that the letter of guarantee is returned.
How Can I Apply?
You can apply by visiting the nearest Ziraat Participation Branch.