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Bank Guarantees

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We offer bank guarantees in Armenian drams and foreign currency for the following purposes:

  • Honoring liabilities or carrying out operations,
  • Receiving downpayment,
  • Participating in competitive offers and tenders,
  • Servicing international trade operations*,
  • Other purposes not conflicting with Armenian law.

*The information on the guarantees granted for the international trade bank service (disbursement terms, rates, etc.) is here.

Terms and Conditions

Maximum amounts and repayment period Up to AMD 500,000,000 or its foreign currency equivalent, repayment period - up to 3 years
Interest rate
  • 1-4% per annum, min. AMD 20,000.
  • If the chargeable interest rate for the entire or actual period of validity of guarantee does not exceed AMD 20,000, we will charge a lump-sum equal to AMD 20,000.
Commission fee
  • Amendment of terms of guarantee – AMD 15,000,
  • Revocation/cancellation of guarantee –AMD 25,000.
Collateral
  • The following items can be pledged as collateral:
    • movable and immovable property,
    • funds available in deposit and current accounts,
    • working capital, finished goods,
    • standard gold bars and scrap gold, precious metals,
    • treasury bills or other securities.
  • For the entities having been our customers for at least one year period, we issue guarantees backed by cash flows– at the amount of 30% of annual cash flow. Repayment period - up to 180 days.
  • The ratio of guarantee amount and pledged valuables is the same as the ratio of loan-to-value for business loans.
State duties and other costs
  • State duties for authentication and registration of collateral agreement - their amount should be in accordance with the rates stipulated under RA legal acts.
  • Appraisal of pledgeable valuables - according to the tariffs of independent appraisal organizations cooperating with the bank.

ATTENTION:

  • In case of failure to duly pay out the liabilities under the guarantee agreement, the pledged property can be FORECLOSED in the manner stipulated by the law, and information on your default will be recorded in the CREDIT REGISTRY.
  • In case of delay in paying interest rates under the guarantee agreement, we will impose fines at 0.3-0.5% of unpaid interest per day (according to mutually signed agreement).

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