Bank guarantees

A bank guarantee is an irrevocable commitment of the bank to pay the guarantee holder a certain sum of money in the case of the failure of the customer of the bank who asked for the issuance of such guarantee, in order to fulfil its liabilities towards the guarantee holder.

For the bank to issue the guarantee upon request of the customer, the customer should offer the guarantee collateral to the bank. The term of validity of the guarantee is up to 60 months.

Additional terms:

  • The fulfilment of the liabilities stipulated in the bank guarantee is the responsibility of the customer. The guarantee holder addresses the bank with the payment claim (exercises the guarantee) only if the liabilities have not been fulfilled by the customer of the bank, upon whose request the bank issued the guarantee.
  • Even though the bank guarantee stems from the agreement concluded between the customer of the bank and its trade partner, nevertheless it is entirely independent from such agreement. Therefore, upon receipt of the payment claim, it is to be satisfied, if the terms of the guarantee are met, even if the customer believes that its partner is in default of any provision of the agreement.

Forms of collateral:

  • monetary funds in the amount of the sum of the guarantee, not available to the company during the term of the guarantee;
  • deposit that cannot be discharged during the term of the guarantee;
  • mortgage over the real estate owned by the customer or third parties;
  • commercial pledge over the assets owned by the customer;
  • sureties of private individuals and other companies;
  • other collateral acceptable for the bank.


Contact information

OP Corporate Bank plc Latvia Branch
+371 67 777 007
Muitas iela 1, Riga
LV-1010, Latvia