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When are guarantees needed?

Participation of domestic companies in international tenders, shipment of goods or work contracts abroad is usually accompanied with a request from buyers/investors for assuring corresponding bank guarantees. There currently exists distrust within a majority of foreign buyers/investors towards banks in BiH, hence their guarantees are not acceptable. On the other hand, IGA offers an opportunity of providing guarantees which are issued by first class European banks that are acceptable for every buyer/investor.

What sort of guarantees does IGA provide?

  • Tender, advance payment, retention and performance guarantees - In cooperation with the renowned London company Lloyd's and first class European banks, we provide guarantees to foreign buyers and service users, thereby supporting participation of domestic construction, catering and commercial companies in international tenders, as well as the realization and fulfillment of large contracts abroad.
  • Guarantees to commercial banks for financing export - We offer guarantees to commercial banks for financing export based on risk sharing.
  • Guarantees to suppliers of raw materials and equipment for production purposes - We provide guarantees from first class European banks to BiH companies, which enables them to buy raw materials and equipment in foreign countries on credit.

How much does it cost to obtain a guarantee?

The price of a guarantee depends on its duration, while it is represented by the premium amount (which on an annual level ranges between 1.0-2.5% of the guarantee level, based on the credit rating of the company seeking a guarantee) and administrative costs for processing a request for the guarantee (which amounts to 0.35% of the guarantee's amount, with a minimum of 300 KM) which is paid after guarantee approval. For a particular case and more information, contact our staff in one of IGA's offices.

What are experiences like with guarantees?

  • Iga has through issued guarantees supported the realization of transactions worth more than 160 million EUR,
  • We have issued 84 guarantees in 5 different currencies.

How do I obtain a guarantee?

In order to obtain a guarantee, you need fill out an application form and submit it along with requested documentation to the nearest Iga office. In carrying out agreements abroad, minimal participation of domestic products in work and materials should be equal to the performance guarantee amount. You need to sign an indemnity request (reimbursement) in case you do not fulfill your obligations from the agreement, while in case the guarantee is called upon for collection despite the fact that you have fulfilled your obligations from the agreement, then you will not have to reimburse IGA. It could be required to ensure a guarantee with a mortgage on company assets, as a backing for the indemnity request. After application approval and signing the agreement, what follows is issuing the guarantee.

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