Granting guarantees in the form of Letters of Guarantee substitute cash deposits as guarantees for participation in tender procedures for, or in connection with the award of a project, or supply contracts. In addition, these guarantees facilitate collection of an advance payment (direct financing) against the performance of the project or supply under the contract, while they can also be used for securing future payments as warranty for submission of relevant documents (customs clearance certificates etc).
Letters of Guarantee are issued by the Bank according to customer's request, are valid for the customer's specific requirement, and are drafted in accordance with terms and conditions that the customer has agreed with the Bank.
Letters of Guarantee are a traditional banking product (suretyship), through which the Bank guarantees, on behalf of the enterprise for which the letter of guarantee is issued, coverage of the enterprise's obligations, its participation in tender procedures etc, towards third parties (such as bodies / Public Organisations / Insurance Funds etc).
All types of Letters of Guarantee are offered either in the form of Letter of Guarantee or in the form of Stand-By Letter of Credit:
In particular, for companies engaged in international trade (imports-exports), Emporiki Bank may issue or accept letters of guarantee or Stand-By Letters of Credit (good or advanced payment), as well as act as a counter-guarantor Bank in case of Guarantees issued by Foreign Banks.
The commission rates above may be subject to discounts whose percentage may depend on various parameters, such as, the enterprise's financial data, the overall efficiency of its cooperation with the Bank, the total volume and amount of Letters of Guarantee, possible collaterals etc.
Documentation needed for Letters of guarantee