Bank Guarantees Explained
A Bank guarantee is a written irrevocable commitment, assumed by UBB AD, for payment by order of the principal (the client), or the instructing party, of a particular amount to the beneficiary, upon occurrence of specific conditions, which the guarantee stipulates in advance.
UBB issues and advises bank guarantees, received via SWIFT or on paper, in local and foreign currency in accordance with the Republic of Bulgaria's effective legislation, the relevant Uniform Rules for Demand Guarantees, (publication of the International Chamber of Commerce , Paris) and the international banking practices in this field.
The most common bank guarantees are:
- tender bonds;
- performance bonds;
- payment guarantees;
- advance payment guarantees;
- customs guarantees;
- other, depending on the specific needs of the client.
The Bank issues guarantees of standardized wording, as well as with acceptable draft texts, provided by the principal (the client).
UBB has a wide network of correspondent banks, which fact considerably facilitates the business process and reduces expenses.