VTB and the Moscow City Information Technology Department have launched an online service for filing applications for bank guarantees on the Supplier Portal. The service is available to clients of VTB and other banks and simplifies the process of preparing documents for participation in public procurement. A bank guarantee is necessary for suppliers in the public procurement process to confirm the possibility of contract execution. Users of the Supplier Portal can submit an application in a few clicks and track the status of their application online, and after receiving a notification of the bank’s decision, complete the issuance of a guarantee in the VTB Business Internet Bank.
“As part of our digitalization strategy, we are developing a product line of bank guarantees and letters of credit. Entrepreneurs can fully digitally issue express guarantees for procurement procedures and enforcement of commercial contracts, electronic customs and tax guarantees and other products at VTB. For the convenience of procurement participants, we are introducing a service for issuing bank guarantees at the largest trading floors and, within the framework of an agreement with the Moscow City Information Technology Department, we are launching it on the Supplier Portal. Today, most government purchases are carried out using guarantees, so the service will be in demand among clients, ”he said. Ruslan Eremenkoh, head of the regional corporate business department – senior vice president of VTB.
“Authorized users of the Supplier Portal can apply for a bank guarantee by filling out a special form in their personal account. To do this, you need to attach the necessary documents and send an application to the bank. This makes it much easier for entrepreneurs to work with documentation and saves them time, ”noted Roman Urnyshev, Head of the Department for Digitalization of Economic Complexes and Urban Economy of the Moscow Department of Information Technologies.
The entrepreneur can use his own funds or a bank guarantee to secure the execution of the contract. The latter gives customers the opportunity through the bank to promptly compensate for losses associated with violation of contractual obligations by counterparties: to return the money paid to them, to receive the amount of the forfeit (fine, penalty).
“Along with the system for monitoring the integrity of suppliers on the Portal and the electronic execution of contracts when making transactions with Moscow customers, the instrument for obtaining bank guarantees is another step for the complete automation of user procurement activities, guaranteeing the safety and transparency of transactions. The supplier minimizes financial costs due to the availability and low cost of a bank guarantee in comparison with the transfer of its own funds to the customer’s account, and the customer, in turn, has financial protection from the bank in the event of the supplier’s unfair performance of obligations under the contract or agreement, ”said Alexander Starokadomsky, Head of the Department for Automation of Small-Volume Procurement and Operational Transactions of the Moscow City Department for Competition Policy.