Bank Guarantee
1. Guarantees within the Territory of the Republic of Armenia
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Customer |
PRIVE resident |
Resident |
Non-resident |
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Types of Guarantee |
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Maximum / Minimum Amount |
Not defined |
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Currency |
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Guarantees for terms up to 12 months The fee is charged at the time the guarantee is issued and is not subject to recalculation in case of early fulfillment of obligations. Incomplete months are counted as full months for calculation purposes. |
Secured by cash collateral |
Secured by real estate |
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0.2% × term (months), Min 18,000 AMD |
0.35% × term (months), Min 24,000 AMD |
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Guarantees for terms over 12 months The first-year fee is paid at the time the guarantee is issued. Fees for subsequent years are charged annually.
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1–2% annually, Min 18,000 AMD |
3–5% annually, Min 24,000 AMD |
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Other Conditions |
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Application review fee, except for guarantees secured by cash collateral |
12,000 AMD |
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One-time guarantee issuance fee |
18,000 AMD |
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Amendment of guarantee terms |
24,000 AMD |
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Payment against a guarantee claim |
0.3%, Min 36,000 AMD, Max 120,000 AMD |
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Guarantee cancellation |
Free |
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Obligation / Collateral Ratio |
Secured by cash collateral |
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Obligation (currency) |
Collateral (currency) |
Obligation / Collateral ratio |
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Same currency |
Same currency |
≤90% |
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AMD |
USD / EUR |
≤90% if guarantee term ≤ 12 months |
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AMD |
RUB |
≤75% if guarantee term ≤ 6 months |
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Foreign currency |
AMD |
≤75% if guarantee term ≤ 12 months |
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Secured by real estate |
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Maximum 70%, in accordance with the Bank’s Credit Policy. Valuation and insurance of the pledged property are carried out by organizations cooperating with the Bank. |
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In case of a joint activity agreement / consortium / |
In the letter of guarantee, if a third party is also mentioned as a party, it is necessary to submit the latter’s guarantee as security. |
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Guarantee / surety collateral requirement |
Upon approval |
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Form of provision of guarantees |
One-time / single or under limits |
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Note |
If obligations are fulfilled before the expiration of the guarantee term, the fee already charged is not subject to recalculation. |
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2. International Guarantees
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Customer |
PRIVE resident |
Resident |
Non-resident |
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Types of Guarantee |
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Currency |
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Guarantees for terms up to 12 months The fee is charged at the time the guarantee is issued and is not subject to recalculation in case of early fulfillment of obligations. Incomplete months are counted as full months for calculation purposes. |
Secured by cash collateral |
Secured by real estate |
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Resident, PRIVE resident — 0.1% × guarantee term in months, Min 60,000 AMD Non-resident — one-time 0.15% × guarantee term in months, Min 180,000 AMD |
0.35% × term (months), Min 30,000 AMD |
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Guarantees for terms over 12 months Charged annually. The fee for the first year is charged at the time of issuance. |
Resident, PRIVE resident — 1–2% annually, Min 60,000 AMD Non-resident — 1.5–3% annually, Min 180,000 AMD |
3–4% annually, Min 30,000 AMD |
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Other Conditions |
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Customer |
PRIVE resident |
Resident |
Non-resident |
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Application review fee, except for guarantees secured by cash collateral |
12,000 AMD |
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One-time guarantee issuance fee |
18,000 AMD |
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Amendment of guarantee terms |
24,000 AMD + correspondent bank’s tariff |
72,000 AMD + correspondent bank’s tariff |
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Payment against a guarantee claim |
0.5%, Min 60,000 AMD |
1%, Min 180,000 AMD |
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Issuance of a guarantee confirmed by another bank and secured by a guarantee issued by the Bank |
Corresponding tariffs + correspondent bank’s tariff |
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Obligation / Collateral Ratio |
Secured by cash collateral |
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Obligation (currency) |
Collateral (currency) |
Obligation / Collateral ratio |
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Same currency |
Same currency |
≤90% |
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AMD |
USD / EUR |
≤90% if guarantee term ≤ 12 months |
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AMD |
RUB |
≤75% if guarantee term ≤ 6 months |
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Foreign currency |
AMD |
≤75% if guarantee term ≤ 12 months |
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Secured by real estate |
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Maximum 70%, in accordance with the Bank’s Credit Policy. Valuation and insurance of the pledged property are carried out by organizations cooperating with the Bank. |
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In case of a joint activity agreement / consortium / |
In the letter of guarantee, if a third party is also mentioned as a party, it is necessary to submit the latter’s guarantee as security. |
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Guarantee / surety collateral requirement |
Upon approval |
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Servicing of guarantees issued by other banks in favor of the customer |
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Notification of guarantee / amendment |
30,000 AMD |
72,000 AMD |
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Preparation of the customer’s payment claim application under the guarantee |
24,000 AMD |
120,000 AMD |
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Note |
If obligations are fulfilled before the expiration of the guarantee term, the fee already charged is not subject to recalculation. |
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