Under the application criteria, covering the subsidised amount and 20% of the interest and charges on it (an aggregate 120%), a bank guarantee or a guarantee bond issued on the basis of an insurance contract can serve as security for the subsidy granted for the implementation of the project.

How does it benefit you?

  • It means the Bank’s independent assumption of obligation, which is, unless stipulated otherwise, irrevocable.

Clients most frequently apply for the following types of bank guarantees

  • payment guarantee
  • advance repayment guarantee
  • loan repayment guarantee
  • good performance bank guarantee
  • tender guarantee

In the case of EU invitations to tender, OTP Bank’s guarantees are issued in conformity with the requirements in the tender invitations.

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