Bank guarantee

Companies regularly participating in state procurements may benefit from the liability insurance - bank guarantees of JSC Insurance Company Euroins Georgia. 

Bank Guarantee (Letter of Credit) is a written document issued by the Guarantor to a third party (Beneficiary) in favor of the customer (Principal) ensuring that certain liabilities will be met.  This is a format for ensuring performance according to which the guarantor  undertakes (in written form) to cover financial liabilities of the principal, in part or in full, in favor of the beneficiary in case if the principal fails to perform its liabilities in part or in full and the beneficiary submits a claim for the bank guarantee. The liabilities of the guarantor against the beneficiary are not dependent on the main liabilities of the principal, even if such liabilities are directly indicated in the text of the guarantee.  

 Considering the fact that the majority of bank guarantees are used for securing liabilities related to state procurements JSC Insurance Company Euroins Georgia offers its customers the following types of bank guarantees

  •          Tender/auction guarantee – mainly used for participation in electronic tenders or auctions announced by the state;
  •          Contract performance guarantee – for signing the contract on state procurement in case of winning the tender;
  •          Advance payment guarantee - for receiving the advance payment as per the contract on state procurement;

Tender/auction guarantees under 10,000 GEL for tender/auction are issued by JSC Insurance Company Euroins Georgia without any collateral (provided that maximum total amount of   guarantees issued to a single principal shall not exceed 10,000 GEL).

 The period required for decision making may vary depending on the volume of the guarantee and its type and the process is complete within maximum 1-3 working days upon submission of relevant documents. The set of required documents may also vary according to the guarantee requested.

 For further details please contact us and talk to relevant managers.

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