Assumption of Liability for Bid, Advance Payment, Performance, Retention, and Warranty Guarantees

Assumption of liability for bid, advance payment, performance, retention, and warranty guarantees supports Austrian companies in securing bank guarantees (aval) in export transactions. The Oesterreichische Kontrollbank (OeKB), as a public export credit agency, assumes 20% to 50% of the risk for the house bank, thereby relieving the credit line and increasing financial flexibility. Prerequisites include a company headquarters or branch in Austria, a foreign buyer requiring a bank guarantee, and an Austrian value-added share of at least 25% in the underlying transaction. Applications can be submitted year-round between March 1, 2024, and December 31, 2040. The funding rate depends on creditworthiness and value-added share, while costs consist of a surety fee starting at 0.2% p.a. and a one-time processing fee of 0.1% of the risk amount (minimum €10, maximum €720).

This type of guarantee is particularly suitable for both small and large companies that wish to avoid excessively burdening their credit lines with bid, advance payment, performance, retention, or warranty guarantees. In addition to financial relief, the offer stands out due to low access barriers and broad applicability – both for individual avals and aval frameworks. To submit an application, among other documents, the application form for aval transactions, annual financial statements for the last two years, redemption and SEPA direct debit forms, as well as the G7 guarantee form must be provided. Information on further conditions and forms is available in the application documents. This program offers efficient risk assumption and strengthens the international competitiveness of domestic companies.