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Local Guarantee (One time and Facility)

Non-revolving Off-Balance sheet credit

Product Features

Advance payment guarantee: local letter of guarantee to be issued in favor of the employer for advancing a certain sum of money to the employee [our customer] to facilitate the execution of the contract of work. The Bank’s liability is limited to the amount of the advance not used Dashen Bank SC being measured as the advance amount less value of work done to date of the claim within the validity date of the guarantee.
Contract performance guarantee: local letter of guarantee to be issued in favor of the employer to ensure that the specifications, terms and conditions are fully featured in the execution of the work as stated and stipulated in the contract of work. Our liability is limited to consequential costs caused by deviations from the original specification or by negligence to reinforce the terms and conditions in the execution of work.
Retention guarantee: local letter of guarantee to be issued in favor of the employer to protect its interest due from the employee until certificate of full delivery of the object of the contract of work is signed off.
Supply guarantee: local letter of guarantee to be issued in favor of a supplier to ensure that the buyer [our customer] will effect full payment after supply or commissioning of the work by the supplier as per the contract of work.
Order guarantee: local letter of guarantee to be issued in favor of a seller [manufacturer, wholesaler or distributer] to ensure that the buyer [Dashen’s customer] will buy the goods and services and effect payment as per the purchase order.
Lease payment guarantee: local letter of guarantee to be issued in favor of the lessor to ensure that the lessee will effect periodical    installment payments within the lease period as per their lease agreements contracts.
Credit service guarantee: local letter of guarantee to be issued in favor of the service provider [garage, hospitals and the likes] for rendering the service to their potential clients [our customer] based on differed mode of payment.
Credit sales guarantee: local letter of guarantee to be issued in favor of a manufacturer or wholesaler for establishing credit line to a distributer or retailer based on differed mode of payment where the buyer is expected to process settlement of account payables after sale of the purchased goods and then the credit line revolves
Custom bond guarantee: local letter of guarantee to be issued in favor of Ethiopian revenue and customs authority for clearing imported goods to importers or manufacturers [our customers] based on differed mode of customs duty and tax payments.

Eligibility Requirements
  • Recent business registration documents, renewed business/investment licenses, TIN certificates, recent tax clearances; at least three preceding fiscal years’ financial statements and recent financial statement not-older than three months.
  • Requests for Birr 5.0 million and above should be backed by audited financial statements.
  • Healthy credit relationship with other banks
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