The bank guarantee is one of the ways of securing obligations. It’s an irrevocable bank’s liability to pay out a definite sum of money to a receiver of the guarantee in case if a party guaranteed by the bank does not fulfill its obligations. These liabilities are independent from the basic contract.

In accordance with the guarantee regulations the bank is obliged to pay out money to a receiver of the guarantee upon the first demand if bank’s customer has not fulfilled, has not fulfilled in full or refuses to fulfill all contractual obligations.

GE Money Bank offers your business different kinds of guarantees:

• Tender/bid bond guarantee. GE Money Bank offers its customers to execute and issue guarantees at short notice* to participate in tenders announced in different public, municipal and institutions both in Latvia and abroad.  

*If a customer submits to the bank all required documents, if a sum of the guarantee is up to 25,000 LVL and if financial assets serve as a warranty.

• Advance payment guarantee. It may be applied if a down payment is provided by the contract. The bank guarantees the repayment of the down payment if a receiver of the advance payment (a seller of goods or a provider of services) has not fulfilled goods/service delivery obligations.
• Quality guarantee.  It ensures security of the buyer/ importer/ customer in case if delivered goods/services do not comply with the defined quality and the seller/ exporter/ service provider does not eliminate arisen deficiencies.
• Execution of contract guarantee. It ensures a fulfillment of seller’s/ exporter’s/ supplier’s contractual obligations to the buyer/ importer/customer if the contractual obligations are not fulfilled in full amount or fulfilled partially.
• Payment guarantee. It secures seller’s/ exporter’s/ service provider’s obligations in case if a delivery is made in accordance with the contract, but the payment is not ensured.
• Customs guarantee. It secures customs debt and other payable tax debts administrated by customs institutions (VAT, excise tax) payment to the State Revenues Service (SRS).

GE Money Bank offers receiving also other kinds of guarantees according to customer’s requirements and specific contract provisions.

It is possible to execute guarantees in Latvian, Russian and English.

To receive a guarantee you have to:

• Open a current account in GE Money Bank
• Fill in an application
• Submit documents:

- SRS reference on tax payment,

- A contract or economic justification indicating in it liabilities against a receiver of the guarantee, terms of liabilities, brief description of the guaranteed undertaking and economic effect of its realization.

- Information on warranty (as well as property rights documents)

- Other documents upon bank’s request.

For more information, please call the bank specialists on +37167024783 , or contact the nearest GE Money Bank branch