The importance of bank guarantees in modern business (business environment in Serbia)

  • Published September 23, 2016
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.13(3-1).2016.07
  • Article Info
    Volume 13 2016, Issue #3 (cont. 1), pp. 215-221
  • TO CITE
  • Cited by
    2 articles
  • 1093 Views
  • 1562 Downloads

In contemporary international payment transactions, there takes place frequent use of bank guarantees as collateral payment in commercial transactions. The bank guarantee is usually required when it comes to specific business agreements that require stronger commitment and assurance that all contractual obligations will be implemented exactly as indicated. Knowledge of the use of bank guarantees allows better negotiating position in making business, quicker response to the demands of public calls for tenders and the provision of their own claims. Because of its rapid and efficient implementation, the bank guarantee is one of the most commonly used collateral in international business.

Keywords: bank guarantee, business environment in Serbia, legal framework of bank guarantees.
JEL Classification: G21, M16, M21

view full abstract hide full abstract