Tender/Bid Guarantee

The employers who put project implementation, procurement or supply (buy or sale) of goods out to tender/bid, in order to ensure fulfillment of obligations by the participants in the tender /bid, ask them to submit, together with their proposal, a guarantee (bond) in favor of employer. In case the winner of tender/bid fails to fulfil obligations (refusal to sign the contract, failure to carry out or procure the purchase or sale at the proposed price or failure to submit performance guarantee), the beneficiary of guarantee can invoke the same and the bank must cover and compensate losses.

Performance Guarantee

In order to settle any claims made by the buyer/employer against supplier/contractor, regarding the failure of the latter on timely delivery (of goods) or carrying out of services, according to their contract, this type of guarantee is issued, according to the request of the customer (supplier/contractor), in favor of the buyer/employer.

Advance Payment Guarantee

In order to settle any claims made by the buyer/employer against supplier/contractor, regarding refund of the advance payments, in case the supplier/contractor defaults on doing his contractual obligations and proper delivery of goods or carrying out the work/services, the banks issue such guarantee if requested by the customer.

Retention Money Guarantee

In contract agreements and service provision contracts, a certain amount, as performance guarantee, is deducted, and withheld by the employer, from any progress payment made to the contractor. When the contractor is short of liquidity and requests to be paid according to the progress payments without any deduction, the employer, to secure against the contractor, asks for Retention Money Guarantee issued by a bank, in return of paying the amounts deducted as performance guarantee. The Middle East Bank offers such type of guarantee as well.

Payment Guarantee

Based on this type of guarantee, the bank guarantees to cover obligations (settle debts) of an applicant for a certain transaction or work. If a debtor defaults on timely settlement of his debts, the beneficiary can receive the funds, as stipulated in the guarantee, from the bank.

Customs Guarantee
Customs guarantee is issued by the bank, at the request of the customer, in favor of customs authority to cover imported goods’ customs tariffs and duties and allows releasing goods from customs. The bank is required to pay the guaranteed amount on due date, to the account designated by the customs department, whether or not the applicant provides the guaranteed funds.