Bank guarantee

A Letter in which the bank pledges to pay a sum of money to the beneficiary within an indicated period of time at the beneficiary’s request and on behalf of a third party (secured customer)

The Guarantee involves five parties:

- Guarantor (the bank issuing the guaranty)

- Beneficiary (recipient party)

- Secured party (person by whose request the assurance was issued)

- The Sum (sum of money indicated in the assurance contract and within the maturity date)

- Objective (for which the assurance was issued)

Kinds of guarantees:

- Bid bond (Tender guarantee)

- Performance bond (final guarantee)

- Loan bond or advance payment guarantee

Forms of guarantees:

- Internal guarantees

- External guarantees

The Commercial Bank of Syria issues local guarantees which cover %100 of collateral value or by banking facilitations and partial reserves granted to the customer by the bank.