Operations with bank guarantees executed by BPS-Sberbank:
- Issue of all types of guarantees
Bank guarantee is the obligation under which the guarantor bank acting by request of the customer (the applicant) undertakes to pay to the beneficiary a certain amount upon its first written demand in case of non-fulfillment of the terms of the foreign trade contract.
by order of customers, including counterguarantees
BPS-Sberbank issues the counterguarantee in favour of the foreign bank, i.e. orders it to issue the guarantee and undertakes to pay to the beneficiary a certain amount stipulated in the guarantee in case of non-fulfillment of the terms of the contract. The security under the guarantee issued by the foreign bank is the counterguarantee issued in its favour by BPS-Sberbank.
in favour of foreign banks for their issue of guarantees in favour of the beneficiary;
- Issue of guarantees in favour of foreign companies by order of foreign banks;
- Advising and verification of authenticity of guarantees issued by foreign banks in favour of customers, recommendations on their use.
Type of guarantees:
- Tender guarantees;
Provide for cover of losses to the company arranging the tender if a tender participant withdraws from the tender within duration of the bid or in case of refusal to conclude the contract if such a participant wins the tender.
- Performance guarantees;
Provide for due fulfillment of obligations on supply of the goods, performance of work, provision of services etc; in case of non-fulfillment, as a rule, provides for compensation of losses to the buyer (customer etc.).
- Payment guarantees;
Provide for timely payment to the supplier (contractor etc.) for the supplied goods, performed work, provided service etc. under any agreements.
- Loan security guarantees;
Provide for fulfillment of the borrower's obligations to the lender under the loan agreement; the guarantee amount may cover the amount of the loan, payment of interest and making other payments under the loan agreement.
- Advance payment guarantees;
Provide for refund of the advance payment to the buyer (customer) in case of non-fulfillment of the obligations by the supplier (contractor).
- Customs guarantees;
Provide for payment of customs duties for goods imported into the customs territory of the Republic of Belarus, in case of provision of payment deferral to the customer or payment in installments, or in case of shipment of the goods under customs control, and interest for use of the deferral or payment of the customs duties in installments, financial sanctions, penalties for non-payment or late payment of customs duties by the applicant.
- Guarantees in favour of BAMAP (Belarusian Association of International Road Carriers).
The guarantee in favour of BAMAP is needed by customers (legal entities and individual entrepreneur) carrying out international road transportation of cargo in accordance with TIR procedure. The cargo transported under TIR procedure is discharged from payment or deposit of import or export duties and interim customs duties.
Schemes of operations with bank guarantees:
For the applicant::
- Deferral of payment for the supplied goods for the duration of the guarantee, provided to the buyer;
- Possibility to guarantee performance of obligations under the contract without the advance payment;
- Necessity to make payment under the guarantee only in case of presentment of the payment demand compliant with the terms of the guarantee;
- Moderate expenses of the buyer and levelled distribution of such expenses on the time scale.
For the beneficiary:
- Reduction of risks under the transactions;
The bank guarantees compensation for non-fulfillment of obligations under the contract which are stated in the terms of the guarantee, e.g. guarantee of payment for already supplied goods or services for the seller.
- Obtaining guarantee of the service bank or prime European bank (against counterguarantee of BPS-Sberbank).
- High reputation in the international market;
- Many years of experience in trade financing including international guarantees;
- Team of highly skilled professionals ready to consult the customer on any issues related to structuring and execution of the transaction;
- Possibility to offer customers the most competitive rates which are available due to membership in Sberbank Group and cooperation with leading international financial institutions;
- Full support of the transaction:
- Preparation of the bank guarantee wording;
- Negotiations with the foreign bank and the foreign counterparty (if necessary);
- Preparation of remarks and suggestions on the terms of settlements in the respective foreign trade contract;
- Agreement of the guarantee wording with foreign banks (if necessary);
- Assistance in drawing the application for guarantee issue.
- Present the foreign trade contract with attachments, amendments and supplements, stipulating issue of the bank guarantee, to the respective regional directorate (banking service centre) of BPS-Sberbank (draft of the contract);
- Present the application for drawing of the guarantee wording and search of the guarantor bank outside the Republic of Belarus if necessary, to the respective regional directorate (banking service centre) of BPS-Sberbank;
- Present documents for analysis of the financial condition to the respective regional directorate (banking service centre) of BPS-Sberbank;
- Present the guarantee draft (if any);
- View the fee rates of BPS-Sberbank for issue of bank guarantees.
- Provide the respective security to BPS-Sberbank (type of security and its volume are considered on a case-by-case basis);
- After adoption of the positive decision on issue of the guarantee by the collective management body of BPS-Sberbank, fill in the application for issue of the guarantee and send that document to the respective regional directorate (banking service centre) of BPS-Sberbank;
- Conclude an agreement on the issue of the guarantee with the respective regional directorate or banking service centre and pay fees of BPS-Sberbank upon issue of the guarantee;
- The amount of fee for issue of the guarantee is set for each Customer on a case-by-case basis depending on the financial condition of the Customer, the term of validity of the guarantee, and other factors.
To obtain a guarantee, please address BPS-Sberbank’s offices (regional directorate/ banking service centre).