Contract performance guarantee
This service provides coverage for the risk of default by supplier of the obligations’commitments under the agreement.
Key benefits
Main Information
Who Needs a Performance Guarantee?
A guarantee is useful if you:
- Participate in government procurements through ProZorro;
- Enter into contracts with large private companies;
- Supply goods or equipment;
- Provide services under long-term contracts;
- Work with foreign partners.
Terms
| Warranty period | determined by the terms of the contract |
| Currency | hryvnia, US dollar, euro |
| Maximum amount | no more than 15% of the contract amount |
| Minimum amount | 10 000 UAH |
| Procuring | deposit, funds in the coverage account, real estate, guarantee of another individual or legal entity (as an additional deposit) |
Pay attention | Pursuant to the requirements of article 671 of the Law of Ukraine On Banks and Banking (hereinafter – Law on Banks), Raiffeisen Bank JSC (hereinafter – Bank) shall submit to the credit register of the National Bank of Ukraine (hereinafter – Credit Register) the information on its credit operations involving the client-debtor, as indicated in part one of article 49 of the Law on Banks, if the amount of debt (principal debt and interests) under such credit operations is equal or exceeds 100 minimum salaries (or a foreign currency equivalent of this amount). The Bank shall submit to the Credit Register the information, the content and scope of which is stipulated by part 3 of article 671 of the Law on Banks, according to the procedure determined by the National Bank of Ukraine. |
Documents
Useful information
A participant can have the guarantee returned in several situations:
- When the guarantee period stated in the tender documents has expired;
- After the contract has been signed;
- If the participant withdraws their proposal before the submission deadline;
- When the procurement is completed, but no contract is signed with any participant.
If any of these situations occur, the participant can contact the bank to halt the guarantee.
Yes, it is possible to change the amount or duration of the guarantee. This requires the consent of all parties involved: the principal, the beneficiary, and the bank.
Prepare the following:
- Application for the guarantee
- Registration documents and financial statements
- Security documents
- Contract for which the guarantee is issued