Bank guarantees and letters of credit

Eldik Bank OJSC issues various types of guarantees in accordance with the current Kyrgyz legislation and international banking practice, including:

• guarantees of proper execution of contracts; 
• payment guarantees; 
• guarantees of return of advance payment; 
• guarantees in favor of customs authorities; 
• guarantees in favor of tax authorities (including within the framework of the application procedure for VAT refund); 
• tender guarantees (for participation in tenders/competitions); 
• other types of warranty obligations.

The Bank also carries out operations with guarantees of other banks: advises guarantees of Kyrgyz and foreign banks in favor of beneficiaries; at the request of clients, checks the signatures on guarantees of other banks and sends demands for payment under the guarantees of these banks to the guarantor banks.

The procedure for the Bank to make a decision to issue a guarantee without cash coverage is similar to the procedure for considering a loan application.

Eldik Bank OJSC has established and operates a simplified procedure for issuing bank guarantees with 100% cash collateral (covering) placed with Eldik Bank OJSC. 

For clients who have long-term partnerships with Eldik Bank OJSC, it is possible to set a limit on conducting documentary transactions.

The amount of commission for issuing a guarantee is set individually for each transaction, depending on the assessment of the risks arising in the transaction (type of guarantee, its amount and validity period, volume and liquidity of the collateral, etc.).

Guarantees against counter guarantees:

• organizing the issuance of guarantees from correspondent banks against counter-guarantees of Eldik Bank OJSC on behalf of clients. Guarantees are issued in favor of counterparties of clients of Eldik Bank OJSC within the framework of contracts and tenders;
• issuance of guarantees by Eldik Bank OJSC in favor of its clients against counter-guarantees of correspondent banks. The principals of the guarantees are the counterparties of the clients of Eldik Bank OJSC within the framework of contracts and tenders.

Letters of Credit

A letter of credit is the most effective form of payment, equally protecting the interests of both parties under the contract (agreement).

Eldik Bank OJSC carries out a wide range of operations using documentary letters of credit (including standby ones) in accordance with international and Kyrgyz practice, including non-standard and complexly structured schemes using a letter of credit as a trade financing instrument, which allows us to finance foreign trade transactions of our clients, including by attracting funds from foreign financial institutions.

OJSC "Eldik Bank" offers:

• opening and execution of letters of credit of any forms, types and designs in foreign currency and Kyrgyz soms; 
• opening letters of credit when clients provide security other than cash (subject to the establishment of an appropriate credit limit at the Bank); 
• advising (notifying) clients about letters of credit opened in their favor and amendments to them without and with the addition of the Bank’s confirmation; 
• advising clients when preparing documents to request payments under letters of credit issued by other issuing banks and monitoring the receipt of proceeds;

• other types of warranty obligations. 

The Bank also carries out operations with guarantees of other banks: advises guarantees of Kyrgyz and foreign banks in favor of beneficiaries; at the request of clients, checks the signatures on guarantees of other banks and sends demands for payment under the guarantees of these banks to the guarantor banks.

The procedure for the Bank to make a decision to issue a guarantee without cash coverage is similar to the procedure for considering a loan application. 

Eldik Bank OJSC has established and operates a simplified procedure for issuing bank guarantees with 100% cash collateral (covering) placed with Eldik Bank OJSC.

For clients who have long-term partnerships with Eldik Bank OJSC, it is possible to set a limit on conducting documentary transactions.

The amount of commission for issuing a guarantee is set individually for each transaction, depending on the assessment of the risks arising in the transaction (type of guarantee, its amount and validity period, volume and liquidity of the collateral, etc.).

Guarantees against counter guarantees:

• organizing the issuance of guarantees from correspondent banks against counter-guarantees of Eldik Bank OJSC on behalf of clients. Guarantees are issued in favor of counterparties of clients of Eldik Bank OJSC within the framework of contracts and tenders;
• issuance of guarantees by Eldik Bank OJSC in favor of its clients against counter-guarantees of correspondent banks. The principals of the guarantees are the counterparties of the clients of Eldik Bank OJSC within the framework of contracts and tenders.

• Letters of credit
• A letter of credit is the most effective form of payment, equally protecting the interests of both parties under the contract (agreement).
• Eldik Bank OJSC carries out a wide range of operations using documentary letters of credit (including standby ones) in accordance with international and Kyrgyz practice, including non-standard and complexly structured schemes using a letter of credit as a trade financing instrument, which allows us to finance foreign trade transactions of our clients, including by attracting funds from foreign financial institutions.

OJSC "Eldik Bank" offers:

• opening and execution of letters of credit of any forms, types and designs in foreign currency and Kyrgyz soms; 
• opening letters of credit when clients provide security other than cash (subject to the establishment of an appropriate credit limit at the Bank); 
• advising (notifying) clients about letters of credit opened in their favor and amendments to them without and with the addition of the Bank’s confirmation; 
• advising clients when preparing documents to request payments under letters of credit issued by other issuing banks and monitoring the receipt of proceeds;
• other types of operations, including the development of customer contracts regarding payment terms, drawing up draft letters of credit for agreement with the counterparty.

The procedure for the Bank to make a decision to open a letter of credit without cash coverage is similar to the procedure for considering a loan application.