A guarantee is a security instrument by which the issuing bank, at the request of the client, undertakes an irrevocable obligation to pay the guaranteed amount to the beneficiary of the guarantee upon request, as compensation for non-payment or inaction by the principal, for whom the bank will pay the obligation.

There are different types of guarantees, such as:

• Customs guarantee
• Advance refund guarantee
• Bidding or tender guarantee
• A guarantee for good performance
• Guarantee for payment security
• Loan repayment guarantee etc.

Benefits for the user:

• In all its forms, the guarantee provides security to the user that he will receive compensation from the bank for any non-payment or inaction on the part of his contractual partner.

Advantages for the client:

• By using the name of his bank, the principal secures a better position and better negotiating terms, and is also protected against the carelessness of the beneficiary.

A letter of intent

Bank's Letter of Intent for:

• refund of advance
• good carrying out of the job
• elimination of defects within the warranty period
• any other business need to issue a Letter of Intent that is acceptable to the bank

A letter that can be:

• non-binding for the bank

Currency: RSD, EUR, CHF, USD, in foreign currency or with currency clause
Target group: Legal entities
Approval conditions: Depending on the creditworthiness of the client
Amount: Depending on the creditworthiness and needs of the client
Fees: In accordance with Fee Tariffs
Default interest: Default interest is calculated in accordance with legal regulations

Calculation of fees
Fees are calculated and charged:

• one time in advance