External Guarantees
External guarantees are letters of guarantee issued by banks in favour of firms, and are addressed to the name of foreign organizations and corporations as the beneficiaries. This type of guarantee is by nature an irrevocable and unconditional payment commitment of the issuing bank upon first demand of the beneficiary of the letter.
Counter-guarantees
Counter-guarantees are guarantees issued to the beneficiary of the letter through and under the guarantee of a foreign bank.
External guarantees and counter-guarantees allow the local firms to do business abroad, and the foreign firms to do business in Turkey. External guarantees are sent directly to the beneficiary of the letter, while letters of counter-guarantee are issued by a bank in the beneficiary’s home country.