Documentation and guarantee operation

DENAR GUARANTEES

Bank guarantee is an instrument for collateral based on which the Bank, as a guarantor, is obliged to pay certain funds in favor of the guarantee beneficiary if the debtor doesn't fulfill its obligations stated in the guarantee.

  • Payment guarantees
  • Guarantee for all types of payments
  • Guarantee for good performance
  • Guarantee for participation into auction
  • Guarantee for return of received advance payment
  • Guarantee for obligations within guarantee time limit
  • Guarantee for customs
  • Other types of guarantees according to the clients' necessities
FOREIGN CURRENCY GUARANTEES

NOSTRO foreign currency guarantee is an instrument for collateral which is issued in favor of foreign legal entities. With this instrument the foreign company insures itself that the Bank, which issues the guarantee, i.e. Eurostandard Bank, shall pay its damages in the following cases: if the domestic legal entity doesn't pay for the purchased goods or performed services within the anticipated time limit, if the domestic legal entity doesn't perform according to the identified terms and time limits, if the domestic legal entity doesn't sign an agreement on approved tender, if the domestic legal entity doesn't return the accepted advance payment due to non-fulfilled obligations etc.

  • Guarantee for all types of payments
  • Advance payment guarantee
  • Auction guarantee
  • Guarantee for good performance
  • Other guarantees depending on the clients' necessities

LORO foreign currency guarantee is sent by S.W.I.F.T message MT760 in most cases but it can also be sent by mail or delivered by the client himself (this is only in case when guarantee has been issued on Memorandum by a foreign bank). If its authenticity can not be identified the Bank which issued the guarantee is informed (this is when the guarantee was sent by mail or was delivered by the client himself) and the procedure is terminated. When authenticity of loro guarantee is confirmed the following elements are reviewed: who is beneficiary of the guarantee and if the beneficiary is client of the Bank, validity time, subject of guarantee, terms etc. The client is informed in written that the loro guarantee has been received in favor of the client and at the same time copy of the guarantee is delivered. The client is obliged to review the guarantee carefully and to inform the Bank in written if the guarantee is accepted or not.