Letters of Guarantee & Letters of Reference
Letters of Guarantee
A letter written by the bank to a governmental office, a public enterprise, a real person or a body corporate to undertake that a certain work, delivery or undertaking shall be performed, made or fulfilled within a certain period of time and under certain conditions, and that otherwise the bank shall pay unconditionally the amount which the party who undertook that certain work, delivery or undertaking has to pay in case of such failure.
Letters of guarantee can be issued in Turkish Lira or a foreign currency depending on the customers decision. They can be issued for a certain or undefined validity term.
Letters of Reference
Letters written by the bank for reference purposes, to be submitted by the customer to a tender announced by the Ministry of Public Works, departments of the said Ministry, other public enterprises or private sector companies. They can be issued in Turkish Lira or a foreign currency.