BG( Bank Guarantee)

Guarantees can be either direct or indirect:
A direct guarantee – occurs when a bank is instructed to issue a guarantee by its account holder, in favour of the beneficiary.

An indirect guarantee – an indirect guarantee occurs when a second bank is asked to issue a guarantee in return for a counter guarantee. In case the second bank suffers losses in the event of claim against the guarantee, the issuing bank indemnifies any losses the second bank suffers.