Bid bond

Guarantee insures the obligation of a winning bidder to enter into a contract.

Through this guarantee, Česká exportní banka will compensate the tender organiser in the event that an exporter wins the tender but does not comply with the conditions in the bid it submitted. Such non-compliance with conditions may be, for example, a change in price, delivery time or delivery terms, or a refusal to conclude the export contract.

What is a guarantee?

Česká exportní banka guarantees to pay the beneficiary an amount up to the sum given in the guarantee, if the debtor (principal) has failed to meet a specified obligation, or other conditions stated in the guarantee are met.

Česká exportní banka issues bank guarantees in the Czech Republic or abroad in the form of direct or indirect guarantee.

Direct bank guarantee is issued by the applicant's bank (issuing bank) directly to the guarantee's beneficiary. With indirect guarantee another bank is involved, i.e. Česká exportní banka issues an indirect guarantee (counter-guarantee) to the second bank, on the basis of which the second bank issues a guarantee to the beneficiary.