Bank guarantees
A bank guarantee is a method of securing the fulfillment of obligations, under which a bank assumes a monetary obligation to the beneficiary to pay funds in the event of a guarantee case.
This instrument is particularly relevant for legal entities participating in competitive bidding, tenders, and centralized procurement, especially in procedures conducted by government authorities through the Prozorro system. In such cases, the bank undertakes obligations to the beneficiary under a tender guarantee if the principal violates the terms of the tender and refuses to conclude a contract for the supply of goods or the performance of works.
In addition, a guarantee serves as a means of securing the execution of agreements and contracts, under which the bank offers its clients the following types of guarantees:
- performance guarantee – the bank's obligation in case the principal fails to fulfill its obligations regarding the supply of goods or the provision of services;
- advance payment return guarantee – the bank's obligation within the amount of the payment (prepayment) made by the beneficiary to the principal's account;
- payment guarantee – the bank's obligation in case the principal fails to make a payment in accordance with the terms of the contract.
Banks in Ukraine carry out operations involving bank guarantees in accordance with the requirements of Articles 560–569 of the Civil Code of Ukraine, Article 200 of the Commercial Code of Ukraine, the Uniform Rules for Demand Guarantees (ICC Publication №758, 2010), and the Regulation on the Procedure for Banks’ Operations with Guarantees in National and Foreign Currencies, approved by the Resolution of the NBU Board dated 15.12.2004 №639.
Advantages of using guarantees
- more favorable financing terms compared to loans, helping to avoid unnecessary expenses;
- the possibility to receive an advance for contract execution without using borrowed funds;
- minimization of the risk of non-fulfillment of contractual obligations;
- increased trust between counterparties, encouraging companies to enter new markets and grow their business;
- the possibility of deferred payments without using own or borrowed funds, allowing for optimized cash flow management.
Advantages of guarantees from Agroprosperis Bank
- competitive rates without additional collateral;
- individual approach to each client;
- the possibility to obtain a guarantee without collateral;
- prompt processing in the shortest possible time.
Documents required to obtain a guarantee
Tender guarantee
Application for the issuance of a guarantee
List of documents for a legal entity
Principal’s questionnaire – legal entity
List of documents for a sole proprietor
Principal’s questionnaire – sole proprietor
Performance, advance payment return, and payment guarantees
Application for the issuance of a guarantee
List of documents for a legal entity
Principal’s questionnaire – legal entity
List of documents for a sole proprietor
Principal’s questionnaire – sole proprietor
Need more detailed information?
- Request a callback
- Call the bank’s contact center at 0 800 300 170 (toll-free in Ukraine)
- Contact the branch where you are served or your regional manager