OVERSEAS CONTRACTING SERVICES LETTER OF GUARANTEE PROGRAM
Project Status : Active
Updated Date : 28.04.2021
OVERSEAS CONTRACTING SERVICES LETTER OF GUARANTEE PROGRAM
DETAILS
In addition to ensuring the permanence of our companies operating in the contracting sector in existing markets, we support the projects undertaken abroad with a letter of guarantee in order to open up to new markets.
What is the Overseas Contracting Services Letter of Guarantee Program?
In addition to ensuring the permanence of our companies operating in the contracting sector in existing markets, we support the projects undertaken abroad with a letter of guarantee in order to open up to new markets.
With Overseas Contracting Services Letter of Guarantee Program For the tenders and / or commitments of contracting companies whose credibility and the projects they have undertaken / will be deemed appropriate by Turkish banks In return for the counter-guarantees of Turkish banks to Türk Eximbank, the foreign employer is addressed to the contracting authority of the employer authority or the bank of the employer authority in favor of Turkish contracting companies;
- Letter of guarantee,
- If the tender is won by the contractor firm, a letter of performance bond,
- An advance letter of guarantee can be met as a repayment guarantee for the payments made by the employer to the contractor firm in the form of advance payments.
Who can apply?
Companies operating in the contracting sector that have undertaken projects abroad can benefit.
What is the cost?
For letters of guarantee to be issued to the employer contracting authority or the bank of the contracting authority, a commission at the rate of 0.5% per year will be charged by Türk Eximbank. The aforementioned commission amounts will be collected in advance on behalf of the contractor from the relevant Turkish banks in 3-month periods.
What is the company limit?
- Within the scope of the program, the total guarantee amount to be arranged in favor of a company in return for the counter-guarantee of Turkish banks is 25 million USD. Shares of contractor companies in the project they will undertake within the scope of consortiums to be formed will be taken into consideration in determining the risk of any firm at a certain moment.
- A letter of guarantee may be given up to a maximum of 25% of the amount specified in the contract made with the contracting authority or the tender price, so that the project limit does not exceed the company limit.
- Letter of guarantee allocation on country basis will not exceed 20% of the total program limit.
What is the transaction lower limit?
There is no lower limit on transaction basis within the scope of our Overseas Contracting Services Letter of Guarantee program.
How long is the term?
The amount and maturity of the letter of guarantee to be issued is determined by our Bank on the basis of the transaction, based on the type of letter requested, the tender specifications or the contract text, limited to the amounts specified in the company, project and country limits.
For any project, the amount of the letter of guarantee to be arranged by our Bank, within the limitations stated above, should not exceed the counter-guarantee amount to be issued by Turkish banks to our Bank.
