Letter of guarantee
KICB issues letters of guarantee which can be confirmed by foreign banks, if required and assumes liability on fulfillment/making of payment upon receipt of written request of beneficiary as per provided guarantee conditions.
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Commission |
0,5% per annum |
We also recover Swift charges and all charges of foreign banks are payable by you.
Unlike documentary letter of credit and documentary collection, bank guarantee is not form of settlement between parties on agreement, but a tool that secures fulfillment of liabilities by parties.
Procedure of issuing letter of guarantee is similar to procedure of giving credit. Bank concludes letter of guarantee agreement with client. Client is required to provide liquid security to bank. When fixing validity term of letter of guarantee, period for fulfilling liabilities on agreement is taken into account.
