A bank guarantee and a letter of credit are both promises from a financial institution that a borrower will be able to repay a debt to another party, no matter the debtor's financial circumstances.

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

A sudden rush for cancellation of bank guarantees (BGs ... citing dwindling business volumes coupled with letters from private banks seeking 100 per cent coverage against BGs.