A bank guarantee represents an irrevocable obligation of the bank to pay a specified amount of money in case the party for which the bank is issuing the guarantee does not fulfill its contractual obligations. MEB offer you several types of guarantees. Bank guarantees may be used in situations where large amounts of financing are needed and it is not possible to obtain a loan as a letter of surety.
MEB offers you several types of guarantees
Payment guarantee: to guarantee the seller that the buyer will fulfill its payment obligations as stated in the contract.
Tender guarantee (bid bond): used for participation in international tenders, such a guarantee covers the organizers’ expenses in case when a participant revokes its bid or does not accept the offer.
Performance guarantee: to strengthen the contractual relationship between a buyer and a seller. It guarantees compensation of the agreed-upon amount in case the delivery terms or other contractual obligations of the seller are not fulfilled as agreed upon in the contract.
Advance payment guarantee: used when the contract provides for advance payment to be made to the seller, and it guarantees that the advance payment will be returned to the buyer if the seller does not fulfill its obligations on delivery of goods or services.
Customs guarantee: to guarantee that the applicant will fulfill the obligation of paying customs duties.
Retention money guarantee: issued upon the request by the contractor (the applicant) to the employer of the construction projects (the beneficiary) that MEB will refund the retention money as specified in the guarantee if the contractor withdraws the balance of the contract price in advance and fails to make repayment due.
This product is mainly available for Corporate clients.
While tenor of Bank Guarantees is limited to one year however the agreed tenor is subject to various micro and macro-economic factors i.e. borrower's position, industry norms, market condition and etc.
1. MEB Personal Information Questioner
2. MEB Corporate Information Questioner
3. Company Profile
4. Industrial, Commercial and Trade Licenses of the Co.
5. Six months Bank Statements of other banks
6. Bank Guarantee request form
7. Certificate of enterprise legal representative or power of attorney, board of directors resolution and the articles of association;
8. Last three years audited financial statements
9. Year to date in-house accounts(trial balance)
1. The applicant contacts Corporate Banking Department of MEB to submit the guarantee request form and provide the above mentioned list of documents.
2. MEB conducts the due diligence and credit rating process to evaluate the operational, financial and structural risk analysis of the application.
3. After approved borrower's two parties sign the MEB Bank Guarantee Contract and other related text of the agreement (such as client's guarantee contracts, mortgage contracts and pledge contracts, etc.
4. For new to bank clients, the borrower opens an account in one of the MEB branches or alternatively the existing client its account to.