Bank Guarantees and Letters of Credit
Holding an account with JSC "MB Bank" apply to issue a bank guarantee.
A bank guarantee is a guarantee from a lending institution ensuring the liabilities of a debtor will be met. The bank undertakes an obligation in writing to pay a certain sum of money to the creditor (beneficiary) of the client as soon as the payment request is received.
A bank guarantee serves as collateral ensuring a contract is fully performed. If both sides duly fulfill their obligations, the payment under the guarantee is not made.
A bank guarantee does not withdraw funds from the turnover. It helps to take part in bidding or competitive tenders where, as a rule, it is required to provide a bank guarantee.
A payment under a bank guarantee is made in accordance with terms and conditions specified in the guarantee but in case the client (or debtor) has failed to satisfy his contract obligations.
JSC "MB Bank" opens and services letters of credits too.
You can apply to issue a letter of credit with JSC "MB Bank" to minimize risks that may arise when making mutual payments with partners.
A letter of credit is a kind of a payment request which is forwarded by the payer's bank to the payee's bank in order to make payments to individuals or corporate entities within a certain sum of money on conditions specified in the request. It is a sort of a method of settlements where two banks are involved. They guarantee that both buyer and supplier will perform their liabilities taken under contracts previously signed.
JSC "MB Bank" issues guarantees, opens and services letters of credit in accordance with the Bank's Tariffs for corporate clients.
For more information please contact us by phone +7 (495) 646-21-10 or e-mail firstname.lastname@example.org