Bank Guarantees for Govt Contractor

Suppose XYZ company is engaged in providing infrastructure services to Govt . on contractual basis. Now when the company issues a Bank Guarantee in lieu of Bid Security, such bank guarantees will be classified as Performance Guarantee or Financial Guarantee ??
Replies (3)
Quick Summary
This discussion explores the classification of bank guarantees issued by infrastructure service providers to the government. Specifically, it addresses whether a bank guarantee provided in lieu of bid security should be considered a performance guarantee or a financial guarantee. The consensus leans towards it being a financial guarantee, with further questions arising about its relationship with collateral.

Financial Guarantee
Yes, it is a financial guarantee

Financial guarantee and collateral relation?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register