Non Cash Loans

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 Letter of Guarantee

They are warranties given by the Bank, to the domestic official institutions and organizations, guaranteeing  unconditional payment of the promised sum by the Bank, in the event of failure of the debtor to fulfill its obligations in accordance with the terms and conditions of the contract with the counterparty.

 Reference Letter

They are the letters issued by the Bank, and which are required in order to participate to the tenders that would be called by the public and private bodies in Turkey and at abroad.

 Foreign Guarantees

They are the warranties given by the bank, to the addressees at abroad, guaranteeing the work, delivery or commitment, and unconditional payment of the sum, which will have to be paid by the party that had undertaken the work, delivery or contract, by the Bank, in the event of nonperformance in accordance with agreed terms and conditions. The letter is issued in FX.


They are commitments made in international trade and/or tenders that a thing or a payment will be made. Whereas in the case of external guarantees, the standby letter of credit is advised by the beneficiary bank directly to the drawee, in the case of counter-guarantees, issue of the standby letter of credit by a bank domiciled in the drawee’s country via the beneficiary bank is requested. In this eventuality, the guarantee that the beneficiary bank gives to the bank domiciled in the drawee’s country and which will issue the standby letter of guarantee is the counter-guarantee. PASHA Bank wishes to the first choice that comes to the mind of the firms that do or wish to do business with Azerbaijan and Georgia.

 Letter of Credit

It is a kind of loan that is used both in domestic and international trade and; through which receipt of the goods in desired quality by the buyer against the price it would pay, and receipt of the price of such goods at agreed terms by the seller is guaranteed by a bank. The buyer’s bank does, through the seller’s bank, guarantee that it would make the payment to the seller upon submittal of the document substantiating shipment of the goods before the agreed-upon deadline. While domestic letters of guarantee can be issued only in Turkish Lira, in international transactions, they can be issued in foreign currency.