Letters of Guarantee
A letter of guarantee is a commitment issued by the Bank in favour of the beneficiary to ensure that the obligations undertaken by the debtor against the beneficiary will be fulfilled.
External Guarantee Letters
External Guarantee Letters are letters of guarantees issued in foreign commercial transactions for the performance of certain commitments to an oversea addressee. In case of failing to fulfill the commitment within determined term and in accordance with the agreement signed between two parties, the amount payable by the party having assumed the commitment is paid to the addressee.
Letters of Credit
It is a method of financing foreign trade whereby an undertaking to make payment for goods is given to the exporter in import transactions when the letter of credit stipulating the terms and conditions related to the import (shipment date, payment terms, type and value of the goods) is delivered by the Bank to the exporter’s bank in abroad and after the shipment of the goods to Turkey.