Bank Guarantee

Guarantees in Foreign Transactions and Trades
Importers (Buyers) who wish to ensure the proper performance of exporters’ (sellers’) obligations, may ask the seller to provide a guarantee. This would be a written undertaking by a guarantor, usually a bank, to pay the buyer up to a maximum sum quoted on the guarantee upon presentation of a demand together with any other documents under the terms of the guarantee. There are two basic ways of issuing a demand guarantee:
Direct Guarantees are used primarily in domestic business and is issued directly to the beneficiary. Due to cost and risk considerations, direct guarantees are increasingly being used in foreign business as well.
An Indirect Guarantee is often issued for export business, especially when government agencies or public entities are beneficiaries. Many companies do not accept foreign banks and guarantors. So in order for sellers to meet their international trade requirements, a second bank, typically a domestic bank which is acceptable for them, is utilized.

Guarantees in Bank Melli Iran
A) Guarantees in Export Operations
These types of bank guarantees are issued at the request of Iranian producers of industrial, agricultural and mining products and the exporters of technical and engineering services. Types of these guarantees are:
Tender or Bid Guarantee
Performance Bond Guarantee (PBG)
Advance Payment Guarantee (APG)
Retention Guarantee which may be issued in respect of a contract or letter of credit.
Other types …

A-1) Areas of activities

Guarantees for (Internal) Domestic Contracts This type of guarantee is issued with regard to contracts concluded in Iran, required by Iranian suppliers.
Guarantees for Exporting Technical and Engineering Services This type of guarantee is issued to facilitate the export of Iranian engineering and technical services.
Guarantees for Exporting Goods This type of guarantee is issued to facilitate the export of goods from Iran.

B) Guarantees in Import Operations
 Import guarantees are issued by the request of foreign sellers/contractors through counter-guarantees of correspondent banks in favor of Iranian buyers/importers. About import guarantees, the local and international credit rating of seller’s bank and provisions of counter-guarantees are the most significant factors in assessment of counter-guarantors and acceptance of their liabilities. Types of these guarantees are:
Tender or Bid Guarantee
Performance Bond Guarantee (PBG)
Advance Payment Guarantee (APG)
Retention Guarantee which may be issued in respect of a contract or letter of credit.
Other types …
 
C) IDB -Guarantees related to facilities granted by Islamic Development Bank (IDB) Why choosing us:
Experience We have near a century of experience in rendering banking services including issuance of different types of guarantees.
Our Fast and Secure Services The guarantee issuance procedure takes the least time.
Advising of Bank Guarantees We advise guarantees issued by other banks to Iranian companies.
Cost-Effective Commission and Charges Commission and charges for issuance of guarantees are most competitive.

For further information please contact Foreign Guarantees Department at:
Export Section

Tel: +9821 23583311   
Fax:+9821 26403765
E-Mail:  iodlgexp@bmi.ir
Address: P.O.Box 1549634811, No.190, Mirdamad Blvd., Tehran, Iran.

Import Section
Tel: +9821 23583325 
Fax: +9821 26403765
E-Mail:   iodlgexp@bmi.ir
Address: P.O.Box 1549634811, No.190, Mirdamad Blvd., Tehran, Iran.