Bank guarantee is a written declaration of the bank by which the bank irrevocably undertakes to pay to the creditor (i.e. beneficiary of the guarantee) up to the amount of a certain sum, according to the content of the letter of guarantee in case the debtor (i.e. the client/guarantee applicant) fails to fulfil its obligation, secured by a bank guarantee.

On the basis of the client´s or correspondent bank´s request Tatra banka provides all types of bank guarantees, e.g.:

• bid bond, provisional guarantee - its submission is required by the caller for the tender to secure the event, that the bidder fails to meet the bidding terms at the conclusion of the contract, in case its offer was in the tender successful, or in case the bidder withdraws from its offer during the period of its binding. Applicant for the issue of such guarantee is the participant in the tender (bidder).
  
• advance payment guarantee, down payment guarantee - the bank undertakes to repay the advance payment effected by the buyer to the seller in case the seller does not deliver the respective goods or delivers it only partially. The applicant for issuing of this guarantee is the seller.
  
• payment guarantee - the bank takes over the responsibility/guarantee for the buyer's payment obligation at delivery of the goods respectively for services rendered. The applicant for issuing of this guarantee is the buyer.
  
• performance bond - is used to ensure the fulfilment of contractual obligations The bank may guarantee during the entire period of delivery, respectively during the technical warranty (warranty guarantee). The performance bond might be for the purchaser/orderer of the work an alternative for the release of the retained money (retention money guarantee). The applicant for issuing of this guarantee is the seller/ contractor.
  
• customs guarantee - the bank takes over the responsibility/guarantee for the payment of customs debts (duty, VAT, cunsumption tax). The applicant for issuing of this guarantee is the importer.
  
• customs guarantee according to Agreement on Common Transit Procedure - the bank takes over the responsibility/guarantee for the payment of customs debts in country of transit, if the goods has not been delivered to the country of destination. The applicant for issuing of this guarantee is the exporter or forwarder company.

Tatra banka provides to its clients in connection with bank guarantees all related services, e.g.:

• consultation already in the phase of preparing the contract.
• advising a guarantee issued by other bank in favour of the client
• other services

Advantages of the bank guarantee:

• bank guarantee is a security instrument, by which the cotract parties can minimize its commercial risks
• bank guarantee provides for the beneficiary a high degree of security,
• issued guarantee supports the applicant's credibility towards the beneficiary of the guarantee
• bank guarantee provides the applicant with the possibility to agree more favourable commercial conditions (postponed payment, receipt of advance payment or retained payment, substitution of cash deposit e.g. by bid bond or rental guarantees)

The conditions of provision of bank guarantee in Tatra banka:

• submission of application for bank guarantee together with all documents stipulated therein
• agreemet between the client and the bank about the security a charges in connection with the bank guarantee

Contact:
Head Office of Tatra banka:

• Bank Guarantees Department (e-mail: garancie@tatrabanka.sk)
• Departments of corporate clients (relationship manager)
• Corporate Branches of Tatra banka (relationship manager)
• Branches of Tatra banka (business consultant, director)