Bank guarantees

Guarantee is a bank obligation to fully or partially pay the amount of money to the beneficiary of the guarantee upon receipt of payment demand and other documents specified in guarantee if the company the bank guarantees for fails to fulfill their obligations or fulfils them improperly.

  • Bank guarantees demonstrates financial stability of the company.
  • Bank guarantees secures company‘s payment and contractual obligations.
  • Bank guarantees is independent from the underlying contract and payable upon guarantee beneficiary‘s demand for payment.
New! „Swedbank“, AB may issue bank guarantee remotely. Customers using internet bank for business have possibility to present guarantee application and sign guarantee agreement remotely using e-signature. According to customers request, bank will forward issued guarantee signed by e-signature to email address provided by the customer.

Guarantees and their types:

  • Main bank guarantee types

  • Main conditions for issuing bank guarantee

  • Fees and commissions

  • Frequently asked questions

Usage of Guarantees (guarantee process)

  1. Parties of the transaction agree on using a bank guarantee in order to secure the performance of respective contractual obligations.
  2. Applicant asks his bank to issue bank guarantee.
  3. Guarantee is being issued and forwarded to the beneficiary: 1) in paper form, 2) in electronic form through the beneficiary‘s bank.
  4. In case respective contractual obligations are breached, beneficary claims payment under the guarantee from guarantee issuing bank and bank pays out claimed amount to the guarantee beneficiary. In case all contractual obligations are fulfilled until guarantee expiry date, issued guarantee expires unutilized.

Inquire about bank guarantee

When replying to queries submitted in this form, we will be able to provide only general information about bank guarantees. If you have any questions related to financial information of your company, please login to the internet bank or contact us by phone 1633. If calling from abroad, please call +370 5 268 4422.

We will reply to your questions from 8 a.m. to 6 p.m. on business days. If you need urgent information, please call us by phone 1633. If calling from abroad, please call +370 5 268 4422.

Company’s name*
Company’s code*
Name, surname*
Telephone*
E-mail*
Question

Information regarding potential risks

  • To the applicant of the guarantee – that the recipient of guarantee shall unreasonably present payment demand under the guarantee.
  • To the beneficiary of the guarantee – bank’s obligation according to guarantee is reliable to the extent the bank issuing the guarantee is reliable and risk free.
  • Bank guarantee is of first demand and the bank does not analyse client’s disputes with the beneficiary of the guarantee arising because of failure to fulfil guaranteed obligations – bank shall pay according to guarantee upon receipt of first payment demand presented by the beneficiary of the guarantee complying with guarantee conditions, and the client must immediately pay the amount paid by the bank; if the client deposits funds for issuing of guarantee – bank shall pay according to guarantee from deposited funds upon receipt of first payment demand by the recipient of guarantee complying with conditions of guarantee. Improper execution of financial obligations shall raise the cost of borrowing and may adversely affect your credit history, if the agreement is terminated because of material breach by you, an enforced recovery may be initiated and you may lose property rights to pledged property.