A bank guarantee is an irrevocable undertaking from a bank stating that a certain sum will be paid to an entitled beneficiary based on his request which has been provided according to terms and conditions of the guarantee. Such instruments are specific abstract 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 suitable and effective means for securing given payment or other contractual obligation while offering a fair balance between the interests of all parties.
Advantages of bank guarantees:
Citibank Europe plc, Bulgaria Branch can issue and advise all standard type 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 Citibank client)
Pre-requisites for issuance of a guarantee:
The bank guarantees Citi issues are governed by the applicable International rules