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Letters of guarantee
Enhance your business credibility and competitiveness with domestic and international letters of guarantee. Apply online for domestic letters of guarantee or book an appointment at a branch.
Online or at a branch, for any need
Guaranteed credibility for your associates
With a letter of guarantee, we guarantee to a 3rd party (a company or the State, in Greece or abroad) that we will compensate them if your business fails to meet its contractual obligations.
This way, you enhance your business credit rating and can strike more favourable business deals.
An LG is not a loan, as we are not offering the money in advance. However, it is a credit product, as we undertake the risk for you. This is why you need to have a credit limit.
Find the LG you need
To public or private organisations
With the participation in tender LG we guarantee you will fulfil the obligations arising from your participation in a public or private sector tender.
The LG amount is a percentage of the total project budget and covers the tender fees.
Participation in tender LGs (or bid bonds) usually have a short term.
To be awarded projects
With the performance LG we guarantee you will fulfil the terms of the contract calling for the guarantee.
The amount is usually a percentage of the total contract value.
Usually, a performance LG must be submitted at contract signing, and is released after the project is completed and the project owner signs the final acceptance.
To boost your liquidity
With an advance payment LG, we guarantee to the beneficiary that we’ll refund the advance payment they’ve given you if you ultimately fail to fulfil your contractual obligations to:
- Finish the work.
- Provide services.
- Supply products or goods.
- Meet any other obligation.
Guaranteed trustworthiness
With the payment LG, we guarantee you will meet your payment obligations to the beneficiary, such as:
- Pay suppliers for products you've already received.
- Pay other business debts.
This way, you can negotiate better payment or credit terms with your suppliers or strike new partnerships.
To collect payment without money retentions
When you complete part of a project, the project owner may retain part of your payment, to ensure the entire project is properly executed and completed.
With the retention LG we stand as your guarantors, and you collect the entire amount, without the retention.
How they make banking easier
Find out if you can apply for a domestic LG online
Apply provided you...
- Have activated eLG.
- Meet the conditions for activating eLG.
- Want a domestic LG in euro, US dollar or pound sterling.
Have at hand...
- The supporting documents depending on the LG type.
Moreover, if you want to start banking with us or if you haven’t updated your details:
- The required documents depending on the legal form of the company.
- The supporting documents to update your personal details.
Apply for a domestic letter of guarantee online
1. Start a new application
- Using your business digital banking credentials, log into business web banking.
- Go to Lending > Letters of guarantee > New application, from the home page.
2. Choose the type and fill in the details
- Choose the type of letter of guarantee you want to have issued from the drop-down menu.
- Enter the amount.
- Choose the currency, term and expiry date (for fixed-term letters of guarantee)
- Choose “Continue”.
Your business credit limit must be sufficient. If it’s not, we inform you that you cannot continue.
For a letter of guarantee in foreign currency, changes in the exchange rate may affect the amount in euro charged against your credit limit at the time of issue.
3. Enter the beneficiary’s details
Fill in the details depending on letter of guarantee type you’ve chosen.
Choose “Continue”.
If you wish, you can save the application and continue later.
4. View the draft
Review the text and choose “Accept” to confirm the details are correct.
Once the application is submitted, the text cannot be modified.
5. Fill in the details for pick-up and payment
- Choose the branch where you’ll pick up the letter of guarantee.
- Find out about the indicative cost and choose an account to be charged.
- Upload the necessary supporting documents for the tender notice. You can upload up to 15 files. Each must be up to 15MB in size.
- Choose the representative or representatives of your business who can sign the application.
- Choose “Continue”.
6. View the application
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Any questions?
Find the answers you need about domestic and international letters of guarantee.
What documents do I need to apply for a letter of guarantee?
Participation in tender
- Tender notice
- Call
- Call for expression of interest
Performance
- Contract you have signed or draft contract
- Letter of project award
- Award decision
Payment
- Invoices
- Proforma invoices
- Order
- Quote
- Contract
Advance payment
- Contract
- Proforma invoices
- Order or quote
Retention
- Contract
- Letter of project award
- Award decision
How can I amend my letter of guarantee?
Provided you asked for the letter of guarantee to be issued online:
- Log into business web banking with the digital banking credentials of your business.
- Under Lending > Letters of guarantee choose the one you are interested in.
- Click on the menu to the right and choose “Amend”.
- Choose a purpose, “Amount increase”, “Term extension” or “Tender date change”.
- Fill in the new amount or new expiry date or new date, depending on the purpose for the amendment.
- Review the text and choose “Accept” to confirm the details are correct. Once the application is submitted, the text cannot be modified.
- Fill in the details for pick-up and payment, and upload the necessary supporting documents.
- Review the information you’ve entered. If it’s correct, choose "Submit”.
- Sign the application form online within 15 days, provided you are the legal representative or 1 of the legal representatives.
How can I amend my letter of guarantee?
Yes, if you want to:
- Increase the amount.
- Extend the expiry date.
- Change the tender date.
Find out in detail how to amend an LG.
To reduce the amount of the letter of guarantee, book an appointment at a branch near you.