Letters of bank guarantee
EximBank takes over reparatory payments for default or faulty fulfillment of a commitment made by a Romanian company to its business partners.
Letters of guarantee may be issued for: participation in tenders, refund of advance payments, performance bonds, warranties and payments.
- Romanian companies
Letters of guarantee for participation in tenders
Romanian companies willing to gain new contracts by participating in international tenders, when they need to submit a tender offer accompanied by a guarantee
Provides bank guarantees for commitments made by Romanian companies participating in tenders, if they:
- withdraw or change their offer before the tender is called
- refuse to sign the contract if they win the tender
- do not fulfill their obligation of submitting a performance bond (or any other guarantee requested by the beneficiary) if they win the tender
Letters of guarantee for refund of advance payments
Provides a bank guarantee for the full or partial refund of advance payments collected in by Romanian companies from their business partners, if the contracted goods or services are not delivered.
Guarantees the observance of contractual obligations made by Romanian companies regarding:
- delivery in full of the contracted goods, performance of works or delivery of services
- deadline for the delivery of goods, performance of works or delivery of services
- quality of delivered goods, performed works or delivered services
- start-up and operation according to the agreed technical parameters, including the warranty for complex objectives
This is a version of the performance bond and covers the contractual obligations of the seller (Romanian company) over the warranty period.
These obligations may refer to:
- repairing malfunctions
- full or partial replacement of the goods which are not up to the standards set by contract
- providing service during the warranty period
Payment guarantee letters
The object of these letters is to guarantee the buyer’s obligations to pay the contractual price, set as value for goods, works or services.
Provides bank guarantees for commitments made by Romanian companies regarding:
- payment for imports
- payment of customs taxes and other taxes and fees pertaining to imports
If more than one letter of bank guarantee is necessary over a certain period of time, EximBank provides the service of guarantee ceiling, within which letters of bank guarantee are issued depending on the client’s needs. The ceiling can be replenished with the value of letters past maturity.