BANK MELLAT TURKEY ISTANBUL MAIN BRANCH

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LETTERS OF GUARANTEE

Bank= Trust. This is the main principal in banking. Trust is so important in commercial relations such as the social ones. Because of that in order to obtain mutual trust in commercial relations a third party as banks are necessary.

With letter of guarantee any probable loss arising from the lack of commitment or non-fulfilment of legal contracts between the drawee and the beneficiary can be guaranteed by the banks. In other words banks guaratee the drawees(official or non-official, real or legal persons) the amount that the beneficiary shall pay in case of of commitment or non-fulfilment in time without any condition.

Our Bank generally provides the letter of guarantees that our customers need in foreign trade procedures. Letter of guarantees can be arranged as TRL or foreign currency and also be perpetual or time-bound according to the needs and demands of our customers.

The letter of guarantees drawen by our bank based on letter of credits are generally "Irrevocable, Unconditional and Extendable (by the order of drawee) and correspondent bank's commission is clamed from the beneficary.

All of the information needed about collateral and pricing conditions and required documents can easily be obtained from the credit service.

Types of Letter of Guarantees

  • Bid Bond:
  • These letter of guarantees are arranged for participation in tenders. With bid bonds banks guarantee that if the beneficiary winning the tender does not sign the contract and undertake, the bank commits to make a particular payment without any condition.

  • Advance Payment Bond:
  • With this letter our bank guarantees to pay the advance back to the notified party in case of any lack of commitment or non-fulfilment of legal contracts by the beneficiary without any condition.

  • Performance Bond:
  • With this letter our bank guarantees the notified party that in case of any lack of commitment or non-fulfilment of legal contracts by the beneficiary to make a particular payment without any condition.
  • Free Format Letter of Guaratees :
  • With this letter our bank guarantees the notified party to make a particular payment for the declared matters in the letter of guarantee excluding the above mentioned without any condition.
  • Letter of Guarantee for TURING
  • This type of letters are presented by our bank generally for our personal customers of foreign nationality who are obliged to have blue carnet from Turing.

All of the information needed about collateral and pricing conditions and required documents can easily be obtained from the credit service.