A letter of guarantee is a contract in which Anadolubank pledges to pay a debt, or guarantees goods will be delivered, etc. on behalf of an individual or company residing in Turkey. In case of non-performance by the contractor, the Bank pays the beneficiary the sum of money specified in the letter of guarantee immediately and without objection.
Letters of guarantee may be issued in Turkish liras or some other currency. In return for issuing such letters, the Bank earns a commission either up front or at quarterly intervals.
These guarantee letters are issued either with or without an expiry date. The letters can be issued on different terms, including: irrevocable, temporary etc. These guarantee letters can be issued for any of the following activities: purchasing, franchising, commitments, customs transactions, court awards, or a transaction in a tax office.
An international letter of guarantee or performance bond is a contract in which the Bank guarantees execution of contractual obligations to a non-resident beneficiary engaged in international transactions. In instances of non-compliance with the contractual obligations, the Bank pays the beneficiary the sum of money specified in the letter of guarantee immediately and without objection. In return for issuing such letters, the Bank is paid a commission either up front or at quarterly intervals.
Import letters of credit are used in import transactions. The letter specifies all credit conditions, including value of goods, shipment date, validity date, documents required, and payment terms etc. The letter is sent by the Bank to the exporter’s bank outside of the country. The letter guarantees that the value of the credit will be paid to the exporter on presentation of the relevant documents confirming the terms of the letter of credit. In return for issuing such letters, the Bank is paid a commission.
Acceptance credit is a form of non-cash credit that guarantees import payments on terms. It is used as security against either the documents or goods listed in the import transaction. A bill of exchange is drawn by the exporter and is accepted by the importer. The Bank adds its endorsement to the bill, guaranteeing payment to the exporter. In return for its endorsement the Bank is paid a commission.
This is a letter of credit issued by a foreign bank, the validity of which has been confirmed by Anadolubank. In confirming the validity of the letter, our Bank assumes all commercial and/or political risk of the transaction. An exporter whose payment terms are a confirmed letter of credit is assured of payment by our Bank even if the foreign buyer or the foreign bank defaults. In return for its confirmation, the Bank earns a commission.