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Header
  • Benefits
  • Costs
  • Features
  • How to Apply
  • Further Aspects
A Garantia Bancária (Bank Guarantee) is a document issued by the Bank, at the Customer's request, having a third party as beneficiary. In the document the Bank undertakes a specific obligation towards the third party, in the event of the Customer failing to match/performed in the conditions agreed between the Customer and the third party.
 
The Bank Guarantee enable the Customer to reach the following benefits:
 
 Assurance of Contractual Obligations
The Bank secures that the Customer will perform its obligations as established in the base agreement.
 
 Access to Better Financial Conditions
The existence of a Bank  Guarantee, covering the Customer's risks, may allow the later to access financing at a better pricing.
Commissions
 
 Guarantee Issuance
The issuance of a Bank Guarante is charged with an Organization Commission and a Quarterly Fee (or proportional part of a quarter), during the term of the Guarantee.
 
 Modifications
Extension or raise of the Guarantee is charged with the corresponding fee, plus administrative expenses.
 
All costs related to the Bank Guarantee are mentioned in the Bank's Price List available online and at any Millennium bim Branch.
Types of Bank Guarantees:
 
 Financial for Credit Replacement
Intended to secure the repayment of cash benefits of principal and interest under a credit obligation - existent or future, formalized or soon to be contractually - between the secured Debtor and a Creditor;
 
 Financial not for Credir Replacement
The goal is to secure or replace the pecuniary responsabilieties assumed by the Ordainer, or by a third party, towards the Beneficiary, due to legal or contractual obligations;
 
 Technical
The goal is to secure that the covered party is able to perform in the technical terms defined in an agreement with a third party.
 
Amount
Defined on a case by case basis.
 
Expiration or Validity
Bank Guarantees can be:
 
 Without Expiration Data
When, in the text of the Guarantee, no expiration date is mentioned;
 
 With a Defined Expiration Date
When, in the text of the Guarantee, an expiration term is clearly mentioned, with or without a renewal clause.

To apply for a Bank Guarantee, please visit your Millennium bim Branch or contact your Relationship Manager and ask for a simulation.

Cancellation

The cancellation of the Guarantee must be done before its expiration, with full performance of the obligations mentioned.

 

Collaterals

Usually, a bill of exchange is request as a collateral. However, other collaterals might be required, on a case by case basis, depending upon the Creditworthines Analysis done by the Bank.