External Guarantees

External Guarantees

External Guarantees are financial instruments where one party to a contract irrevocably undertakes to retrieve the losses incurred by the other party if it fails to fulfil its contractual obligations. Bank guarantees eliminate the risks occurred or to be occurred as a result of nonperformance of their contractual obligations arising from commercial relation between parties and enable the relevant parties to secure themselves.

External Guarantees are subject to “Uniform Rules for Demand Guarantees (2010 Revision, URDG 758)” of International Chamber of Commerce.