Latvijas pasta banka

Bank guarantees

Bank guarantee - is one of the ways to ensure fulfillment of the obligations under which the Bank is entrusted for his Client and is committed to ensure the payment to the seller in the event the buyer fails to fulfil his obligations.

LPB offers the local and foreign partners of its Client the following guarantees: excise guarantee, payment guarantee, tender guarantee, performance guarantee and guarantee of quality of performed works.

Conditions of the guarantee:    

  • amount: without limitations in case the bank guarantee is secured with cash cover, if not – up to EUR 2,000 000;
  • currency: EUR, USD;
  • term: up to 12 months (the term for the bank guarantee of quality of performed works/sold goods/rendered service may be longer).

Collateral:

  • cash/fixed-term deposit in the Bank;
  • pledge of real estate up to 70% of the market value of the collateral;
  • commercial pledge of company’s assets up to 70% of the market value of the collateral;
  • other form of collateral acceptable for the Bank.

Granting conditions:

  • the term of active economic activity of the company is at least 6 months;
  • positive equity capital of the company;
  • the company should work with gross profit;
  • the total liquidity of the company should be 1 or more.

To receive guarantee you have to:

  • open a current account in LPB;
  • the Customer should submit an Application to receive the Bank guarantee and other required documents.

For more detailed information about the service “Bank guarantee”, please, contact the Credit Department of the Bank by phone +371 6 777 2 999 or visiting the central office of the Bank.

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