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To: Janice Shell who wrote (35)	10/28/1999 8:40:00 PM
From: Henry Volquardsen	Respond to of 1156

Actually I think I've heard the term 'bank guarantee' before. I suspect it may be similar to a letter of credit. May be just a case of different terminology. The choice of a bank with Negara in its name may be designed to give the impression its the central bank. Much as a brokerage firm called Goldmen might cause confusion with Goldman.

To: Janice Shell who wrote (35)	10/30/1999 4:54:00 PM
From: RockyBalboa	Respond to of 1156

And what the hell are "bank guarantees" anyway? They come close to letters of credit, sometims referred as "stand by facilities" Usually bank guarantees, a term very common in Central Europe, is a dead serious instrument. It is widely used, for example in the building - construction business where a bank guarantee is a cheap way to proove "dignity", or good standing, while the underlying instrument, a loan may be taken out later. In the construction case, where a deposit is given to the constructor, the constructor returns a bank guarantee to the general undertaker. Also the principal delivers a bank guarantee instead of instant cash and pays as the work progresses. The insurance again is any kind of bank accept. Also the accreditive business is a sort of guarantee for the deliverer of goods, while the products are on "transit", and payment by the client is only DoD - important in the export business. The costs for guarantees are between 1/4 and 1.5 percent of the face values, depending on credibility. Whereas: European banks insist that there is no "bank guarantee dealing". Nigerian fraudsters often managed to bilk out thousnds and millions by "selling" bank guarantees to individuals in the last years.