Bank guarantee is a document according to which the Bank commits to paying a limited amount of money to the named party on the stipulated terms. Bank guarantee is an irrevocable liability of the Bank to execute it in the monetary form in case the third person does not execute the payment.

This type of banking services guarantees client’s execution of his/her obligations to counteragents and other banks. To issue a guarantee, the Bank shall conclude the agreement with the client that stipulates the order of bank guarantee issue, its terms and conditions, terms of payment and mutual liability of the parties. In a number of cases this agreement requests the collateral like a credit agreement.

To receive bank guarantee, the client shall submit to the Bank the package of documents following the set up list of documents for a loan.

Bank guarantee (warranty) shall be issued for the period not exceeding one year.

Guarantees and warranties shall be provided in terms of national and foreign currencies to solvent economic entities having the status of legal entities, for the following purposes:

• Deferment of surrender payments (VAT, customs duties) to the customs bodies;
• Customs clearance of freight arriving on import contracts registered with the Bank;
• Participation in tenders;
• Licensing for the customs warehouse;
• Conclusion of agency contracts with the airlines;
• And other purposes that have been banned by the enforced legislation of the Republic of Uzbekistan.