As part of the smooth conduct of its business, a company may have the need to provide its suppliers or clients with guarantees. To avoid using excessive owners' funds, ING Luxembourg can issue a banker's indemnity.
The banker's indemnity is a form of credit whereby ING commits itself to pay a certain amount on behalf of its customer if this does not fulfil a commitment it has contracted to a third party, the payee of the guarantee. This commitment can cover the payment of a debt or the performance of a task or a transaction.
Bank export guarantee
ING Luxembourg is working with the Office du Ducroire Luxembourg (ODL) to meet a common goal: to support the development of export activities of businesses in Luxembourg.
The cooperation agreement enables ING Luxembourg to issue bank export guarantees to exporting companies registered with the Luxembourg Trade and Companies Register.
ING issues the Bank Guarantee to a third party on behalf of its client, committing to pay a pre-agreed sum to back an obligation the client has contracted with the third party (the beneficiary of the guarantee). The guarantee is normally irrevocable, unconditional and payable upon first request.
The Office du Ducroire Luxembourg is a public establishment created in 1961 and supervised by the Ministry of Finance. For more information about the Office du Ducroire Luxembourg, go to http://www.odl.lu.
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