Performance Related Bank Guarantees

 Programme for the Issuance of Performance-Related Bank Guarantees

1. Beneficiary of Bank Guarantee

Natural person or legal entity in the Republic of Croatia

2. Purpose

Issuance of performance-related bank guarantees to domestic entrepreneurs for the purpose of participating in tenders and entering into contracts for the supply of goods, works and services in the domestic market.

Manner of issuance of guarantee - HBOR issues bank guarantees on its own and/or in cooperation with commercial banks.

3. Applicant

Entrepreneur with a seat in the Republic of Croatia or entrepreneur with a business unit or subsidiary in the Republic of Croatia intending to participate in a tender in accordance with the terms and conditions determined by the beneficiary of the bank guarantee or intending to enter into a contract on the sale of goods, works or services with the beneficiary of the bank guarantee.

4. Types of Bank Guarantees

Tender guarantee HBOR can issue a tender guarantee to an entrepreneur – an instructing party for participation in public tenders. Generally, the maximum amount of guarantee under this scheme is up to 10% of the tender value and it guarantees the honouring of the entrepreneur’s bid.

Advance payment guarantee In order to make it possible for an entrepreneur to get an advance payment, HBOR issues an advance payment guarantee to the beneficiary of the guarantee in the amount agreed between the instructing party and the beneficiary of the bank guarantee. Such a bank guarantee can be issued for up to a maximum of the agreed advance payment amount.

Performance guarantee In the case of a delivery of equipment, machines, special products and/or services or of a performance of investment works, HBOR can issue a performance guarantee to the instructing party in accordance with the terms and conditions of the concluded contract. Generally, such a bank guarantee is issued for up to 20% of the value of the delivered equipment, machines, special products and/or services or of the value of the investment works.

Warranty guarantee If the subject matter of the contract is equipment, machinery, special products and/or services, or carrying out of investment works for which the instructing party warrants a good working order, the period is usually covered by a bank guarantee for eliminating deficiencies in the warranty period. This bank guarantee usually amounts up to 10% of the agreed transaction value.

5. Terms and Conditions for Issuing Bank Guarantee

  • The instructing party operates for at least one year and is more than 50% privately owned
  • The instructing party’s account has not been continuously blocked for more than 30 days in the last 6 months of operations, has no unsettled obligations towards the state, is not in financial difficulties in accordance with the definition from the state aid regulations in force

6. Fees

Application processing fee for the approval of bank guarantee issuance and bank guarantee issuance fee:

Risk category of entrepreneur

Application processing fee (one-off)

Bank guarantee issuance fee (quarterly)














Application processing fee for the approval of bank guarantee issuance: One-off of the approved amount of issued bank guarantee, but at least EUR 66.36. The fee is calculated and charged before the issuance of bank guarantee.
Bank guarantee issuance fee shall be calculated and charged quarterly in advance, but at least in the amount of EUR 66.36.

If the guarantee is issued in cooperation with the exporter’s commercial bank, HBOR and the bank agree the fee amount for each transaction.

7. Security

HBOR accepts:
  • bills of exchange and debentures
  • pledge of property or transfer of fiduciary title to property supported by property insurance policy in favour of HBOR
  • other customary security in the banking operations.



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