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How to use bank guarantees: practical advice
19.08.2015Due to the crisis Ukrainian entrepreneurs have increasingly started to turn to financial institutions for support.
However, not for taking out loans but for bank guarantees. Such a document is a kind of an "insurance" for counterparties when concluding contracts. That is, if one party fails to fulfill its financial obligations towards the other, the bank assumes this responsibility upon itself. Thus, the client’s risks are minimized. Such guarantees are particularly relevant in dealing with foreign enterprises.
However, not for taking out loans but for bank guarantees. Such a document is a kind of an "insurance" for counterparties when concluding contracts. That is, if one party fails to fulfill its financial obligations towards the other, the bank assumes this responsibility upon itself. Thus, the client’s risks are minimized. Such guarantees are particularly relevant in dealing with foreign enterprises.
Head of Financial Department of IBI-Rating, Anna Apostolova, has commented on the situation for the TV channel "24"
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua