A bank guarantee is an irrevocable undertaking from a bank stating that a certain sum will be paid to an entitled beneficiary based on its request which has been provided according to terms and conditions of the guarantee. Such instruments are specific independent commitments where the guarantor is not entitled to impose objections derived from the underlying relationship, which the guarantee secures. This is why bank guarantees are effective for securing payment or other contractual obligations while offering a fair balance between the interests of all parties.
Advantages of bank guarantees:
JSC Citibank can issue and advise all standard types of guarantees:
A guarantee is issued at the request, upon the instructions and under the liability of the applicant (in all cases the applicant shall be a client of JSC Citibank).
Prerequisites for issuance of a guarantee:
The bank guarantees JSC Citibank issues are governed by applicable international rules