Economy

Banking warranty on state contract

What is a bank guarantee

One of the forms of ensuring the fulfillment by the parties of obligations under the concluded agreement is the guarantee.

 Guarantees can be provided with various entities, however, the banking guarantee is the most serious confirmation of the solvency of the debtor.

It should be noted that the banking guarantee, in most cases, certifies the parties of obligations under civil law contracts concluded between domestic entities of entrepreneurial activity or subjects of international private law.

However, there are cases when a bank guarantee confirms the fulfillment of obligations by the parties under a state contract. What is the banking warranty on the state contract?