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Effective expiry date

Posted: Mon Sep 12, 2011 8:20 pm
by picant
Hi Pals

I would like to know the effective date of expiry for a guarantee issued by Algerian, Tunisian and Moroccan Banks, if issued locally on behalf of foreign bank or accepted directly from abroad ? Moreover if in such Countries are accepted ans when ended guarantee without an expiry date?
Thanks in advance

expiry date

Posted: Thu May 02, 2013 11:57 am
by mandeep

as i know there should be expiry date in guarantee. if there is no expiry date there may arise confusion that upto which period bank should book exposure of risk. until and unless bank receives release letter of such guarantees bank is totally in risk.
such guarantees which are issued without expiry dates are called open ended guarantees which i think is risky and is not on practice by all banks.