Bank Guarantee

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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 ?
Dubai: Companies in the tourism industry will soon be able to get back the bank guarantees they had earlier set aside when they started doing their business in Dubai.
According to Daily Express, he used some threating words in the email and gave the deadline of December 3 to clear all dues or the board will cash their bank guarantees.
Each bank guarantees only the repayment of its respective tranche of the CP programme, subject to the following individual limits applicable until 30 June 2018: EUR144 million for CACIB, EUR148.9 million for LCL, EUR99.5 million for Credit Cooperatif and EUR200 million for BECM.
These bank guarantees remain in force till delivery of the vessels.
Utilising the blockchain for bank guarantees is believed to reduce risks.
Late last year, International Passenger Protection Ltd (IPP), along with local partner Orient Insurance, introduced the Default Insurance Policy (Dip) -- an attractive alternative to bank guarantees -- to International Air Transport Association (Iata) travel agents in Dubai.
encash the bank guarantees to be furnished by Roy in case he defaults in paying the two instalments.
A PROVISIONAL seizure of two bank guarantees has been quashed by the High Administrative Court.
Under UAE Law, Bank Guarantees are considered a commercial activity regardless of the capacity of the person to whom the Bank Guarantee is issued or the purpose for which it is issued, hence they are governed under the CTL.
Importing companies call for smaller bank guarantees for products that cross the country only in transit.
A year and a half ago, REC cancelled the deal since China Sunergy did not renew the bank guarantees, stipulated by the agreement.
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.