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What is the difference between a Bank Guarantee and a Performance Bond?

April 26, 2017Bank Bond guarantee PERFORMANCE

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What is the difference between a Bank Guarantee and a Performance Bond?

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A Bank Guarantee is an on demand guarantee made by St George on behalf of the customer to a third party for the purpose of providing a bond or a guarantee of payment for a financial obligation. A Performance Bond is a guarantee made by St George` to make payment of a specified amount to a third party for the purpose of guaranteeing a non-monetary obligation eg: the completion of a contract.