External Letter of Guarantee is a letter of guarantee issued for an addressee abroad for the benefit of a customer conducting business abroad (the beneficiary).
The related amount is paid to the addressee in cases where the undertaking is not fulfilled in due time or in accordance with the agreement between the parties.
Counter Guarantee: The addressee abroad may require a letter of guarantee from a bank in the country it operates in, rather than trusting in a letter provided by a bank that it is not familiar with. In such a case, a letter of guarantee is provided to the bank in such country, guaranteeing the fulfillment of the relevant undertakings. The bank abroad, then, issues a letter of guarantee to the addressee, based on such letter provided. This practice is called counter guarantee (guarantee against guarantee).
Internal Letter of Guarantee; These are letters of guarantee provided to addressees for the benefit of domestic real or legal persons, regarding matters such as performance of a work or payment of a debt, including an unconditional liability regarding the payment of the amount subject to the letter in cases where such liabilities are not fulfilled.
For detailed information, please visit a Türk Bankasi Branch near you or call (392) 444 73 73, our Customer Care Hotline.