Trade Operations

BANK GUARANTEE

Insure your business through the local and international guarantees.

Through the banking guarantee, bank undertakes the irrevocable written obligation to pay the amount indicated in the letter of guarantee to the beneficiary upon the first written demand.

Applicable forms:

Tender guarantee;
Guarantee for fulfillment of agreement;
Advance payment guarantee;
Payment guarantee;
Guarantee for auction;
Guarantee for securing the taxation liabilities (former customs);
Banking guarantee for securing the quality/defects.

For more comfort, please visit Terabank database to search for issued guarantees or other documents.

Determining the Validity of a Bank Guarantee Fill out the form

LETTER OF CREDIT (LC)

Letter of Credit facilitates payment for commodity or service fee and allows to perform the international operations in an erfective manner.

Letter of Credit is the written liability issued by the bank under the order of buyer to pay the certain amount for commodity or service to the vendor against the submittal of the document stipulated by the terms and conditions of the LC.

Letter of Credit is used for both parties – exporter (vendor) and importer (buyer).

DOCUMENTARY COLLECTION

A form of settlement, which is applied in the international trade. Documentary Collection of Payments is mainly applied, when an exporter and importer trust each other and the economic and political situation is stable in the country the a buyer. Terms and conditions of the Documentary Collection of Payments might stipulate the documents against payment and the documents against acceptance.

Bank is not obliged to check the documents and it is not involved with the main transaction.

Documentary Collection of Payments is applied for both parties – exporter (vendor) and importer (buyer).

INTEREST RATES

In the case of cash-cover - from 2%;
In the case of securing with other assets - from 3.5%;
Disbursement fee - from 0%;
Early cancellation fee - from 50 units in the respective currency;
Change fee - from 50 units in the respective currency;
Claim satisfaction fee - 0.15% of the payable (from min. 50 units in the respective currency);
Electronic guarantee registration fee - GEL 10.50.

See Security Registration/Termination Fee link .