Document background
The International Bank Guarantee serves as a crucial financial instrument in international trade and business transactions under Dutch law. It is commonly used when parties seek financial security for performance obligations, payment commitments, or contractual duties in cross-border dealings. The document provides the beneficiary with the assurance of payment from a reliable financial institution, while the principal maintains liquidity by not having to deposit funds upfront. The guarantee must comply with Dutch civil law requirements, banking regulations, and relevant EU directives, while often incorporating international banking practices such as the Uniform Rules for Demand Guarantees (URDG 758). This instrument is particularly valuable in scenarios where parties operate in different jurisdictions or when significant financial commitments need to be secured.
