Performance guarantees

  • Ensure correct and timely completion of a contractual agreement
  • Assist in broadening business relations
  • Years-long expirience
  • Largest client base
  • Wide range of quality bank guarantees
  • Professional client relations

Product description

Performance guarantee is a guarantee that may be used for almost all types of sales agreements or commercial service agreements. However, it is most widely used in agreements on delivery of equipment on credit or in building contracts.

By performance guarantee, the guarantor (i.e. CKB) undertakes to pay, upon beneficiarys demand, a certain amount of money if the principal fails to meet obligations stipulated under the underlying contract.

The product is intended for all legal entities participating in deals that require the delivery of certain quality or timely completion of the planned works.

Product price

For this guarantee, the Bank will charge its clients a minimum fee for issuing a guarantee in the amount of EUR 50, or 2,00% - 3,00% annually of the approved guarantee amount.

In special cases, the Bank management may apply a negotiated fee for issuing a guarantee.

Required documentation

To apply for this guarantee, the client has to submit the following documentation:

  1. application for obtaining a performance guarantee in the typed form, with all important company data
  2. contract between the applicant and third party requiring the performance guarantee

In addition to the aforesaid, the required documentation, regardless of the type of guarantee asked by the client, includes:

  1. copy of registration certificate
  2. copy of certificate on company classification according to its business activity
  3. copy of signature specimen card
  4. copy of OP application form (certified signatures of persons authorized to represent the company)
  5. set of forms for annual financial statements (Balance Sheet, Profit and Loss Statement, Cash Flow Statement, Statement on Changes in Equity, Balance Sheet ancillary form, Profit and Loss Statement ancillary form, Tax Return on Profit Tax, Calculation of Depreciation for tax purposes) for the last 3 years, certified by the Commercial Court
  6. trail balance for the last 3 years, financial statement on operations (Balance Sheet and Profit and Loss Statement) for the current year overview
  7. trial balance for the period of the current year

How to apply for a guarantee?

The company should submit the application supported by required documentation to the Bank. The application for obtaining the guarantee must be certified by corporate seal and authorized signature.

The application must include the data that will facilitate evaluation of the overall activity and the economic and financial analysis. On the basis of the submitted documentation and performed analysis, the Credit Committee will decide on the application and, if approved, contract will be signed with the client.