A banking guarantee is a contractual insurance used in different kinds of commercial or banking deals operations to reduce by means of real guarantees the risk of nonpayment of principal, interests and any other obligation from the borrower.

Banking guarantees can be at first demand or not. A first demand banking guarantee for the issuer means immediate compliance and does not require any kind of legal or administrative procedure. Guarantees not at first demand are generally linked to processes oriented to proving the noncompliance that originated its execution.

There are different modalities and forms of implementation for guarantees. This is determined by the specific characteristics of every deal. A draft of the guarantee is generally submitted by the requesting entity, it is reviewed by BEC and, if needed, adjustments are negotiated.

Guarantees are submitted to the Credit Committee and the Board of Directors, along with the operation is belongs to. Guarantees can be issued by Swift or in paper, which shall be signed by two authorized signatures from the Commercial Direction.

The fees for this kind of service are comprised in the Bank’s Sheet of Terms and Conditions.