In conditions of unstable economic environment, bank guarantee is becoming an increasingly present means of securing receivables in business practice.
A bank guarantee is a payment security instrument that defines the relationship between the Principal and the User and represents an irrevocable statement of the bank that it will pay the Guarantee User a certain amount of money in case of non-performance or disorderly performance of the Principal's obligation defined in the document on the basis of which the guarantee is issued.
Privredna banka Sarajevo gives its clients the opportunity to use all types of bank guarantees in a quick and easy way. We highlight the basic types of guarantees that we encounter in business practice:
- Bid, bid and tender guarantee
- Guarantee for deferred payment
- Guarantee for good performance of work in the course of work and in the warranty period
- Advance Refund Guarantee
- Customs guarantee
- Guarantee for ensuring orderly repayment of the loan
The Bank is open to contracting special arrangements reserved for the Bank's clients.
A documentary letter of credit is by definition an irrevocable statement by the bank that it will pay the user of the letter of credit the amount to which the letter of credit is issued after the user presents documents documenting that the goods were delivered or that the services were performed within the deadline defined by the letter of credit and that it is fully in accordance with the conditions defined in the letter of credit.
The Bank has the possibility of issuing two types of letters of credit in its business offer:
- Import (nostro) letter of credit
- Export (loro) letter of credit