VTB Bank (Armenia) offers entrepreneurs bank guarantees to fulfill their contractual obligations
YEREVAN, January 26. /ARKA/. VTB Bank (Armenia) offers entrepreneurs bank guarantees to fulfill their contractual obligations. With VTB Bank (Armenia) guarantees small and medium businesses can save money when settling accounts with counterparties and participating in tenders. The bank offers guarantees for companies in various industries starting from AMD 10,000.
The bank guarantee is one of the most effective ways to ensure the fulfillment of contractual obligations allowing to minimize the risks associated with the transaction, the bank said in a press release. The advantage of this tool for small and medium-sized businesses is that neither funds need to be taken out of turnover, nor loans need to be issued.
The guarantee is particularly useful for companies planning to participate in public procurement tenders or enter into another large contract as a contractor.
VTB Bank (Armenia) will individually review each guarantee application and determine the amount available, taking into account the needs of the client and the terms of the tender or contract. Small business clients can apply for a guarantee in AMD, medium business clients - in USD, EUR or RUB. The minimum amount is AMD 10,000 (or equivalent in foreign currency).
VTB Bank (Armenia) issues all kinds of basic bank guarantees for fulfillment of obligations by medium and small enterprises to third parties, depending on the contract and the type of the company's activity:
- Guarantees of fulfillment of obligations under the contract: the bank guarantees the buyer's fulfillment of the contract for the supply of goods, work or services on behalf of the supplier,
- a payment guarantee ensures the buyer's obligation to pay for goods or services on time,
- the skills guarantee ensures that the services or work under the contract meets the required qualifications,
- the tender guarantee is provided to secure the obligations of the bidder towards the organizer of the tender in accordance with the tender documentation.
VTB Bank (Armenia) has set a special rate for issuing bank guarantees - 0.1 percentage point lower than the standard rate. It can be received by entrepreneurs who have applied for a bank guarantee through the electronic platform www.itender.am.
"We are constantly working on the introduction of modern solutions to improve the quality of products and services, improve the efficiency and manageability of business processes. The amount of guarantees issued in 2021 exceeded the same figure for 2020 by 165%. The new format of cooperation with the partner - an electronic platform www.itender.am - allows clients to apply for a bank guarantee directly on the website, where the tender is placed, without visiting the bank office," said Ara Avagyan, Corporate Business Development Director at VTB Bank (Armenia).
To issue a bank guarantee, a pledge or a surety is required. The commission fee for local guarantees is 0.3% to 0.75% per quarter, and the commission fee for international guarantees depends on the terms of the deal.
One can find more information about the bank guarantees of VTB Bank (Armenia) on its official site and at the branches of the bank where the customer manager will advise and help an applicant gather the necessary documents.
The activity of VTB Bank (Armenia) CJSC is regulated by the Central Bank of Armenia. -0-
