The Israeli Finance Ministry’s accountant general has approved the provision of a guarantee from insurance companies in business dealings between a supplier and a government ministry, and that such a guarantee is considered equivalent to a bank guarantee in every way (R.F.E. directive 2-17-03-03). This change was intended to vary and enhance the number of entities authorized to issue performance guarantees in Israel, in line with the rest of the world, and to make the process of forming business relations between suppliers and the government easier.
In this framework, ICIC issues autonomous guarantees to government ministries, government companies and registered companies, as an alternative to bank guarantees.
ICIC issues all the common types of performance guarantees:
Supply guarantees for equipment and goods
Service provision guarantees
ICIC’s main advantage in this field is that it frees up the bank financing that a company has at its disposal for other purposes apart from performance guarantees, without increasing the securities the company has to provide the bank. The other advantages of obtaining performance guarantees from ICIC include: the total cost of this service and quick efficient service.