Retention guarantees

  • Ensure correct and timely completion of a contractual agreement
  • Eliminate risk of losing advance payment
  • Years-long experience
  • Largest client base
  • Wide offer of quality banking guarantees
  • Professional client relations

Product description

Retention money guarantee is particularly used as security for the correct execution of a contract in cases where a customer places some retention money in favor of the contractor.

By the retention guarantee, the Bank guarantees to the customer, i.e.beneficiary of the guarantee, that, if the contractor fails to fulfil the contractual obligations or remove certain deficiencies during the guarantee period, the Bank will refund 5% of the contract value serving the customer as retention money.

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 retention guarantee in the typed form, with all important company data
  2. contractbetween the applicant and third party requiring this type of 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
  7. trial balance for the period of the current year, financial statement on operations (Balance Sheet and Profit and Loss Statement) for the current year overview

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.