Bank guarantee

A bank guarantee may be provided for various types of transactions. This is a statement from BNG in favour of a client's creditor. In it, BNG declares that, during the term of the guarantee, it will pay a certain maximum amount at the request of the beneficiary if the client fails to meet its payment obligations. There are different types of bank guarantees, depending on the purpose, such as rent or transactions under a purchase agreement. 

Features of the BNG bank guarantee 

• Maximum guarantee amount of 2,000,000 euros

• Bank guarantee costs 
• Processing fee: one-off fee of at least 50 euros, depending on the nature of the request
• Annual commission: 1% for amounts up to 1.5 million euros. Above this amount, the annual commission is 0.5%. This commission is charged annually in arrears. 

Bank guarantee conditions 

• A counter-guarantee signed by the customer, whereby the customer undertakes to repay any payments made by BNG to the beneficiary under the bank guarantee to BNG. 

• To secure this obligation, BNG secures the guaranteed amount by limiting the current account facility.
• Deposit of the amount into a blocked and pledged cover account. 
• If the beneficiary invokes the bank guarantee, the customer is obliged under the counter-guarantee to repay the full amount paid out by BNG. This amount will be increased by the statutory interest from the moment of payment. This obligation is explicitly laid down in the counter-guarantee agreement.