Bank Guarantee


Also found in: Acronyms.

Bank Guarantee

A promise made by a bank to provide payment to another bank or lender on a bond, loan, or other liability in the event of default. Banks often make guarantees on behalf of certain clients to promise payment on loans. Bank guarantees reduce the risk to loans and liabilities and usually improve the credit agency ratings of bonds.
References in periodicals archive ?
Bank guarantee for participation in the open procedure shall be issued in favor of the contractor and shall be irrevocable and unconditional.
She, however, admitted that she returned the bank guarantee to the CDA after the NAB intervened.
The Bench replied in the affirmative saying it is subject to deposit of '5'000 crore in cash and '5'000 crore in bank guarantee as per the March 26' 2014' order.
Sheehy, speaking to banking enquiry committee in Ireland, has said that he cannot remember comments attributed to him on the night of the bank guarantee, where he reportedly said AIB was facing a bankruptcy problem and disaster.
The ambassador during the talks reportedly said that there was a possibility to reconsider the bank guarantee over Indian males working in Kuwait, but he insisted on its imposition in the case of female domestic helpers.
Funds in the FSRA were meant to be used for the final profit payment of the issues or upon crystallisation of the bank guarantee.
from the date of the Bank guarantee issue (taking into consideration the
Muscat: The recent hike in the bank guarantee amount from RO2,000 to RO10,000 to operate a tourism and travel office in the Sultanate has evoked mixed response in market.
Importing companies call for smaller bank guarantees for products that cross the country only in transit.
Under a new Afghan-Pakistan Transit Trade Agreement (APTTA), Islamabad has suggested Afghan importers submit bank guarantees on transportation of goods to the landlocked country.
Bank guarantee for participation contain an exhaustive list of cases under Art.
India said that the bank guarantee would be used "for the repatriation of the housemaid and other unpaid expenses like salary, medical expenses.