The purpose of bank guarantees is the additional security of financial interests of the parties participating in foreign trade transactions.
The guarantee is an irrevocable pledge by the bank to ensure payment to the seller in the event the buyer fails to fulfil his obligations.
The content of the guarantee obligation is always the performance of an agreement / a contract which the guarantee refers to. The bank does not undertake any obligations on the performance of the contract terms; however, the bank guarantees payment of the amount stipulated by the bank guarantee to the recipient.
This way a client who is engaged in foreign business activities reduces possible losses from non-performance of a transaction to a minimum, which is especially significant for international contracts, when the buyer and the seller operate in different legal areas.
Rietumu Bank issues payment guarantees, performance bonds, down payment guarantees, tender bonds, customs guarantees, excise tax payment and other guarantees.
All guarantees are issued under 100% security in the form of a cash deposit in Rietumu Bank, the correspondent bank guarantees, current and fixed assets or real estate pledge. Rietumu Bank services also guarantee letters of other banks.