Performance Bank Guarantee Meaning. In other words, if the debtor fails to settle a debt, the bank will cover it. Bank guarantee means any signed undertaking, however named or described, providing for payment on presentation of a complying demand.
Please note that Bank Guarantee is more of a generic term, which refers, both to the Financial Guarantee and Performance Guarantee; While the financial guarantees are issued by the banks to cover the financial commitment of the customer to the ben.
What is the abbreviation for Performance Bank Guarantee?
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A performance guarantee provides an assurance of compensation in the event of inadequate or delayed performance on a contract. Bank Guarantees (BG) is also known as Letter of Guarantees which can be broadly classified as (i) Financial Guarantees and (ii) Performance It means that the guarantee covers custom duty in arrears to the Customs Department by the customer up to a limit (stating maximum of amount) of. If there has been a significant deviation from the mean, in any major sense, what makes me think it.
