Letter of Guarantee
Bank guarantees are commitments issued by the bank to secure the beneficiary’s rights against the risk of the client’s failure to fulfill their obligations, whether financial, contractual, or operational. A bank guarantee is commonly used in tenders, supply contracts, and construction projects, providing the beneficiary with confidence in securing their financial rights in case of the client’s default.
Advantages of Bank Guarantees at Bank of Baghdad:
- Enhancing trust in commercial transactions, tenders, and projects.
- Fast and efficient issuance of guarantees in accordance with international banking standards and through the Central Bank’s platform.
- Providing comprehensive banking coverage to protect the beneficiary’s rights and ensure the client’s obligations.
- Assisting clients in entering into major contracts and projects.
Types of Bank Guarantees:
- Bid bonds.
- Performance guarantees.
- Advance payment guarantees.
- Customs guarantees.
- Quality guarantees.
- Professional practice guarantees.
