BANK
GUARANTEE
Bank Guarantee is the commitment given by the banker
on behalf of the customer in favor of a third party (Beneficiary) promising to
perform or discharge the liability of the principal in case of his failure to
perform the contract.
In the present open market scenario prevailing in
Afghanistan, the Construction, Real Estate and Logistics/Supplies sectors are
booming up day by day. This necessitates the Contractors and Suppliers to have
a greater leverage and liquidity of their working funds for deploying the same
in a more profitable manner.
Therefore, Maiwand Bank offers the following three
types of Letters of Guarantees on behalf of their customers;
1. Bid Bond Guarantee
2. Performance Guarantee
3. Financial & Advance Payment Guarantee
Bank
Guarantees Are Issued On Fulfilling The Following Criteria:
1. Prescribed Application along with underlying
Contract with the Beneficiary or Bid Notification, as the case may be.
2. Statutory License from competent authority (AISA
/ MOC / MOI) etc.
3. Audited Financials / Business Plans.
4. Upfront & 100% Cash Margin. However, lower
cash margins can be considered subject to provision of suitable collateral
security and its assessment will be done on case to case basis.
5. Upfront Commission $10 / quarter is charged, if
the facility is backed by 100% Cash Margin. In other cases, it is determined on
the basis of available cash margin and value of the collateral security.
6. Bank Guarantee is issued for a maximum period of
one year and on expiry of the same, the Bank is not liable to the beneficiary,
in any manner.
7. Cash Margin / Collateral Security held with the
Bank will be returned to the customer only on returning the Original Bank
Guarantee
Comments